topic Re: Do school loans matter? in Credit Cards

Do school loans matter?

mrcrisp023 — Mon, 18 Apr 2016 20:11:22 GMT

Do school loans have any effect on approval chances? I have about $40,000 in school loans that are all in deferment for now since I am still in school. I'm not a "right out of high school" college student, but a 30 year old that decided to go back to school a couple years ago to finish my degree. They're all in good standing and no lates obviously because I don't start making payments on them until 2020. Will these have any impact on approval odds or SL's? I am planning an app spree this week after my house closes Thursday, which is why I'm asking.

Thanks.

Re: Do school loans matter?

Anonymous — Mon, 18 Apr 2016 20:12:46 GMT

not in of themselves but the worst denial reason you'll see is "balances are too high in proportion to limits" but that will be mixed with other reasons. the payments may still affect your DTI though. i wouldn't worry much

Re: Do school loans matter?

mrcrisp023 — Mon, 18 Apr 2016 20:21:10 GMT

Thanks.

Re: Do school loans matter?

ddemari — Mon, 18 Apr 2016 20:22:55 GMT

I wouldnt worry too much about it either. My student loan balance is high and they are in repayment but this hasnt stopped me from getting approved for several cards. Like other poster stated, DTI ratio may apply. So things like income could be more important when taking into consideration the overall application.

Re: Do school loans matter?

mrcrisp023 — Mon, 18 Apr 2016 20:26:40 GMT

I'm at 51K annually. Hopefully that is high enough to get a few cards with good limits.

Re: Do school loans matter?

Anonymous — Mon, 18 Apr 2016 20:27:29 GMT

I owe quite a bit but I was still approved for the cards I wanted.I owe ALOT....

Re: Do school loans matter?

mrcrisp023 — Mon, 18 Apr 2016 20:30:02 GMT

Yea, hopefully my income is high enough to warrant some nice SL's.

Re: Do school loans matter?

GeorgiaBulldog — Mon, 18 Apr 2016 20:46:33 GMT

Depending on the lender, yes. My debt-to-income ratio was the sole reason US Bank denied me for Cash+ (without even extending an offer for the lesser cash back card), and all of that debt was from student loans. It's always been listed as a factor bringing down my FICO scores, but because it is all in good standing, my scores are still in the 740-770 range. EX was actually in the 790s at the time of the US Bank denial!

That being said, I haven't been denied for any other card I've applied for after US Bank (Double Cash, Discover It, BofA Travel and BBR, Barclay Ring, AMEX HHonors) with little/no change to my DTI ratio. So perhaps only the most conservative of lenders will be frightened by a considerable amount of student loans.

Re: Do school loans matter?

mrcrisp023 — Mon, 18 Apr 2016 20:55:34 GMT

Wow that's nuts. Well hopefully things work out, I'll have to wait and see.

Re: Do school loans matter?

Samac — Mon, 18 Apr 2016 20:58:28 GMT

Blispay rejected me for proportion of loan amount to loan balance and hard inquires (9). My loans are also in deferment. So depending on the lender they can use it as a factor.
Mine are 52k though and will be over 200k by the time I'm done. Makes me a little sick to my stomach. My current income is low to combat it.

Re: Do school loans matter?

Anonymous — Mon, 18 Apr 2016 21:02:23 GMT

samac - keep in mind it does hurt more if you owe more than the balance. that is easy to do if you keep it deferred because the interest still builds up.

georgiabulldog - that was part of that DTI i mentioned.

Re: Do school loans matter?

mrcrisp023 — Mon, 18 Apr 2016 21:03:56 GMT

Yea my inquiries are very low, so i have that on my side. I just got a scholarship, so out of the 15 or so classes I have left, my scholarship will cover 12 of them, so my loans shouldn't hopefully exceed 50k.

Re: Do school loans matter?

Anonymous — Tue, 19 Apr 2016 04:27:42 GMT

I make $53k and have $150k in law school debt and still have gotten good cards with good limits. I suspect things would be different without income based repayment.