Apply for a Student Card with Prime CC?

[Anonymous]

I have a plan.  I know that Prime CC's will issue student credit cards with lower ficos.  I know that they usually require some proof you're a student when you apply.

Here's the plan.  I sign up for ONE community college class, and get proof of enrollment (hell, I'll enroll full time if I have to) and then send in my "student application".  Once I send it off, I withdraw (they give refunds of tuition) and then hopefully get a prime card.

Think it'll work?

[Anonymous]

they will probably also ask for a copy of your student ID.

[Anonymous]

Yeah, I'll do that if I have to.

My problem now is that I'm on month 7 of a student loan re-hab program.  So my credit reports have 12 "90 day past due" notices on them. 

I make great money and I could have simply paid off the owed amounts on the SLs, but the default would have stayed on my report unless I did the rehab thing.  But until those babies come off, I can't even get BoA secured card. 

It's situations like mine where the FICO alogrithim (spelled wrong?) isn't a very good predictor of "risk".  Oh well, don't hate the playa, hate the game...

[Anonymous]

I think it will be a good way to get invited to the "prime" club (through a back door, anyway).

[Anonymous]

I did this same "Student Loan Rehab Program", and they still are reporting Derogatory from the OC.
"Student Loan Assigned to Government"

I went through the "program" and now have a good standing student loan (same as above) through a type of consolidation company.

Maybe I'm missing something and these Derogatory marks should be changed or updated on my report? Thoughts?

[Anonymous]

If I'm not mistaken all the rehab does is get your loan out of default and back in good standing.   When you defaulted the damage is done and student loans almost never come off your credit report until the 7 year period is up.   The one good thing about the rehab is, not only does it get your account back in good standing and creates a new postive trade line, it stops the Student Loan lenders from utilizing all of their necessary resources to recoup their money, via  wage garnishments, bank account seizures,liens on mortgages and taking your taxes.  Which is huge because they do not have to go through the courts to obtain all this, they can legally just up one day and whack you.    

My defaulted student loan has been rehabed over 18 months ago and all my negative info from the original default is still on there alive and well and KILLING my report.   But the rehab is a positive trade line.

If someone had a different experience with a rehab defaulted student loan and had their negatives fall off before the 7 year periond please chime in.

[Anonymous]

Bad News first

Even after a rehab, the late or other deragatory marks will remain.  It will usually be only back to the date that the loans were transferred to the company you were working with for the rehab.

For example:  I had a different batch of SL that I rehabbed last year.  It showed my last derog as the month before the loan was transferred to the company that let me rehab.  So the derog was already aged 1 year (which is good).

Rehabilitation DOES NOT make the credit history (derogatory, because otherwise you wouldn't be in rehab) go away.  I've heard of mistaken reporting where it does, but this is an annomily (sp?)

Good News

A Defaulted Student loan is a nuclear bomb to getting credit.  I think, in a way, it might be worse than a BK.  With a BK, you don't have to pay back the money owed and it eventually goes off your CR.  A student loan will NEVER go away if unpaid.  

So with a rehab, the Defaulted Student Loan notation will be removed and you'll have your last derog note about a year aged.

Hope that helped.

P.S. don't even get me started on the SPECIAL rules that do not allow Student Loans to be discharged in BK.  If I lose 10 million in a start-up biz, I can get it discharged in BK if things go south.  I invest 100K in education and lose my job and can't pay SLs = no BK.  Gosh I wonder, if Big business was behind that legislation...

[Anonymous]

I can't agree with you more about defaulted student loans compared to BK.   It is the worst.   Any newly graduated students viewing this forum.  Take some advice from former students  and DON'T MESS AROUND WITH YOUR STUDENT LOANS.    If you have to defer them first until you get your feet on the ground, do it.    And then get yourself into an affordable payment plan.  Just don't default them. 

[Anonymous]

My SL did exactly like you guys stated above.
I have 2 years left before the OC will drop off now due to the 7 year mark.

ALSO like BOSWD said:
DON'T MESS AROUND WITH YOUR STUDENT LOANS - PAY THEM ON TIME!!!

[Anonymous]

One more thing:

Never, ever, ever consolidate defaulted student loans.  I almost made that mistake.  It would have been much cheaper in the short run, but the default notation would have remained and it would have cost me much more down the road.