How much does non-revolving DTI matter with CLs?

[Thorin809]

My student loans are currently showing  a~$40k balance instead of ~$20k due my old loan company not reporting my loan as paid off once they transferred it. However, they are currently in their grace period so I have no monthly payments.

I put in a dispute with Experian and also contacted the loan originator.  Experian is investigating the dispute. The loan company said they "might" get it fixed at the end of the month. They haven't posted since June but transferred the loans in July.

My scores are pretty good (800+ in all 3), have no new cards in 2+ years, and my utilization is under 1% ($120 balance with ~$44k TCL). So I'm pretty sure I will get approved for the cards I want.  But will the increased, but incorrect, debt load hurt the credit lines they give me?

I'm thinking of giving it until the second week in February and if it's not fixed by then, applying for the cards I want (Citi DC, Chase FF, and Citi CC a couple weeks later) and doing some CLIs.

[GZG]

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@Thorin809 wrote:

My student loans are currently showing  a~$40k balance instead of ~$20k due my old loan company not reporting my loan as paid off once they transferred it. However, they are currently in their grace period so I have no monthly payments.

I put in a dispute with Experian and also contacted the loan originator.  Experian is investigating the dispute. The loan company said they "might" get it fixed at the end of the month. They haven't posted since June but transferred the loans in July.

My scores are pretty good (800+ in all 3), have no new cards in 2+ years, and my utilization is under 1% ($120 balance with ~$44k TCL). So I'm pretty sure I will get approved for the cards I want.  But will the increased, but incorrect, debt load hurt the credit lines they give me?

I'm thinking of giving it until the second week in February and if it's not fixed by then, applying for the cards I want (Citi DC, Chase FF, and Citi CC a couple weeks later) and doing some CLIs.

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I'd just file a cfpb complaint against the former servicer requesting they correct their reporting, perhaps you skip the line and get to somebody who can push a manual update that doesn't take 6-8 weeks to process

student loan companies not being able to adjust credting reporting in a timely manner is garbage imo 

[Thorin809]

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@GZG wrote:

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I'd just file a cfpb complaint against the former servicer requesting they correct their reporting, perhaps you skip the line and get to somebody who can push a manual update that doesn't take 6-8 weeks to process

student loan companies not being able to adjust credting reporting in a timely manner is garbage imo 

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That's a good idea I hadn't thought of. I just got the Experian dispute back and the only thing it says in my file now is "Completed investigation of FCRA dispute - consumer disagrees." The balance is still the same and the updates are still from May 2023. So it was totally useless.

The lender said they would report at the EOM so I'll give it until then and then file a complaint.

Thanks again

[SouthJamaica]

I hate to say it but I do think the debt to income ratio could be a factor in your credit limit approval, so I think you're right to consider waiting until after the credit reports are updated.

[youngandcreditwrthy]

In practice, yes it could hurt. That said, I STILL have over 50k in student loan debt and had even more when I've been approved for more than 1x my income in credit lines (total)..

I also think there's a HUGE difference between EXTREMELY flexible federal loans (mine are 4% apr on avg) and PRIVATE student loans which are almost always 10%+ and have very little flexibility in terms of repayment.

the only time any creditor has ever asked about my student loans was ten years ago when they were going into repayment and I was buying a 50k BMW. The guy just wanted to make sure I could pay them (and I had already started paying them)

I honestly think student loans are treated like medical debt these days when it comes to a lot of lenders.. that is yeah they can impact your score if they go delinquent, but they aren't a deciding factor.

now of course one thing you can be denied for is "loan amounts to loan limits too high" and that's if you are not paying them down enough which has been sprinkled at the bottom of denial reasons a few times for me over the years. All in all though, I think it's a non issue.

FWIW, I review credit applications regularly for properties that i manage, and I had an applicant recently out of college (a dermatologist) with like 400k in student loans but his FIRST salary was 460k, so I mean.. you do the math.

is it worth it? i dunno. My student loans are actually what has kept my aaoa from tanking so I'm thankful they are there though I'd still rather not pay them off. lol

Good luck!