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Discover IT for Students and Student loans

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Jungook
Regular Contributor

Discover IT for Students and Student loans

Sorry for another post everyone, I'm such a newb when it comes to credit and everytime I reach an answer, more questions pop up.

 

So earlier I had asked you guys the chances of getting approved for the Discover IT card with no credit history and the overall answer was that I would be denied and I would be better off with a secured card.

 

I knew my options were bleak and that I would have to apply for a secured credit card in order to build my credit. However, I have been talking to my universities financial aid officer and I will owe every academic year $3500 in a federal direct subsidized loan, $2000 in a federal direct unsubsidized loan, $2000 in a federal perkins loan, and possibly $3,000 in a student loan I'd have to find elsewhere (if I choose to live on campus). All these loans are throwing big numbers at me and I'm getting pretty stressed!

 

BUT! I realized that somewhat of a good thing has come out of this and that I will be able to build my credit through these loans instead of a secured credit card (which I would rather not have). (and if I can't build credit through federal loans please notify me, I'm such a newb).

 

So, would these student loans be sufficient in order to build my credit for a Discover IT card? Or should I still be looking at secured credit cards?

 

(and I know this is a bit off-topic and that there is a specific sub-forum for this but if you could tell me of any dangers regarding the loans I listed above please tell me. I would rather not sign my financial life away) 

 

Thank you everyone.

Message 1 of 14
13 REPLIES 13
09Lexie
Moderator Emerita

Re: Discover IT for Students and Student loans

SLs will be deferred in your case. Also, some lenders require rev cc not installment loans for prior history.
Message 2 of 14
Jungook
Regular Contributor

Re: Discover IT for Students and Student loans


@09Lexie wrote:
SLs will be deferred in your case. Also, some lenders require rev cc not installment loans for prior history.

What are the negatives of having a student being deferred when dealing with credit?

 

and thank you for the tips.

Message 3 of 14
Luscher
Valued Contributor

Re: Discover IT for Students and Student loans

federal loans do show up on your CR and will help you. They will show up as paying as agreed/deffered. I have 3 CC's and some federal student loans. and my report says 10 accounts open. Because I have 7 federal loan accounts
CHASE FREEDOM | AMEX BCE | | BOFA REWARDS | CITI TYP | Quicksilver | DISCOVER IT | Sallie Mae | CHASE CSP
--------$32,000-------------$30,000-----------$30,000-----------$30,000-----$13,000---------$18,200----------$15,000---------$6,500----

FICO - TU: 780 EX: 784 EQ: 781
Message 4 of 14
sergi0wned
Contributor

Re: Discover IT for Students and Student loans


@Jungook wrote:

Sorry for another post everyone, I'm such a newb when it comes to credit and everytime I reach an answer, more questions pop up.

 

So earlier I had asked you guys the chances of getting approved for the Discover IT card with no credit history and the overall answer was that I would be denied and I would be better off with a secured card.

 

I knew my options were bleak and that I would have to apply for a secured credit card in order to build my credit. However, I have been talking to my universities financial aid officer and I will owe every academic year $3500 in a federal direct subsidized loan, $2000 in a federal direct unsubsidized loan, $2000 in a federal perkins loan, and possibly $3,000 in a student loan I'd have to find elsewhere (if I choose to live on campus). All these loans are throwing big numbers at me and I'm getting pretty stressed!

 

BUT! I realized that somewhat of a good thing has come out of this and that I will be able to build my credit through these loans instead of a secured credit card (which I would rather not have). (and if I can't build credit through federal loans please notify me, I'm such a newb).

 

So, would these student loans be sufficient in order to build my credit for a Discover IT card? Or should I still be looking at secured credit cards?

 

(and I know this is a bit off-topic and that there is a specific sub-forum for this but if you could tell me of any dangers regarding the loans I listed above please tell me. I would rather not sign my financial life away) 

 

Thank you everyone.


There's a silver lining in everything!

 

I received a pre-qualified offer in the mail and was approved for a Discover It Student this summer after completing my first year of college and having my federal loans on my report for about 8 months. I also had 4 months worth of on time payments with my 1st Financial Bank USA Visa on my report, but other than that I had nothing.

 

I'm sure others will chime in, but I just wanted to share my experience in the hopes that it might help Smiley Happy

20 years old | 4 Cards in my wallet | TU (3/28/14) 743
January 2013 - 1st Financial Bank USA Platinum VISA ($500 --> $1,500)
June 2013- Discover IT Student ($1,500 --> $1,800 --> $2,100), Citi Forward Student ($1,500 --> $2,900)
December 2013 - Macy's American Express ($1,000 --> $3,000)
February 2014 - American Express Blue Cash Everyday ($3,000), Chase Freedom ($2,000)
April 2014 - Sallie Mae MasterCard ($3,800)
Message 5 of 14
09Lexie
Moderator Emerita

Re: Discover IT for Students and Student loans

There is not a negative to having them in general. Chase, for one will not count it as a rev cc. If your loan amt is high that might be a reason for denial as well.
Message 6 of 14
Jungook
Regular Contributor

Re: Discover IT for Students and Student loans


@Luscher wrote:
federal loans do show up on your CR and will help you. They will show up as paying as agreed/deffered. I have 3 CC's and some federal student loans. and my report says 10 accounts open. Because I have 7 federal loan accounts

Is there any benefit of having federal loans show up as agreed compared to deferred?

 

and congratz on those credit cards, those are exactly the same three that I would like to have in my own arsenal one day. Could you maybe explain how you were able to attain those cards? A quick post or direct message would be great. Thank you.

Message 7 of 14
Jungook
Regular Contributor

Re: Discover IT for Students and Student loans


@09Lexie wrote:
There is not a negative to having them in general. Chase, for one will not count it as a rev cc. If your loan amt is high that might be a reason for denial as well.

I see. So keeping my loan ammounts low even though I don't pay interest for some of my loans is key. Thank you Lexie.

Message 8 of 14
Jungook
Regular Contributor

Re: Discover IT for Students and Student loans


@sergi0wned wrote:

There's a silver lining in everything!

I received a pre-qualified offer in the mail and was approved for a Discover It Student this summer after completing my first year of college and having my federal loans on my report for about 8 months. I also had 4 months worth of on time payments with my 1st Financial Bank USA Visa on my report, but other than that I had nothing.

I'm sure others will chime in, but I just wanted to share my experience in the hopes that it might help Smiley Happy


Thank you for your input. How would I go about in receiving a pre-qualified offer? Do I sign up with Discover somehow?

Message 9 of 14
Luscher
Valued Contributor

Re: Discover IT for Students and Student loans

Jungook having the student loans on your account while you are still in college will help you build credit but lenders will not count that against you. It is simply looked past in most cases. It is considered in good standing which is the same as paying as agreed/deffered. so your fine with those accounts. now on to answer your other question. I started off by leasing a car with a co signer, that was my first real account open. a month after that I opened a discover card. this was all in early 2011. most recently Ive added Chase and AMEX. And thats about it. I always pay in full and never charge a lot
CHASE FREEDOM | AMEX BCE | | BOFA REWARDS | CITI TYP | Quicksilver | DISCOVER IT | Sallie Mae | CHASE CSP
--------$32,000-------------$30,000-----------$30,000-----------$30,000-----$13,000---------$18,200----------$15,000---------$6,500----

FICO - TU: 780 EX: 784 EQ: 781
Message 10 of 14
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