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Checking line of credit inquiry.

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jazzyvar84
Regular Contributor

Re: Checking line of credit inquiry.

Coming from a home where finances and credit were not taught, I am proud that my scores came from the 300's to almost 800. Everyone I know with cloc's are people I consider to be fiscally responsible and seem to have their lives together. Perhaps I over thought it. I just really am so proud of myself and want to keep it up. I only have one $8,000 credit card to pay off from Navy Federal with over $66,000 in available credit. The credit game is really exciting and nerve wracking at the same time. I just want to do the right thing. 

Message 11 of 25
Brian_Earl_Spilner
Credit Mentor

Re: Checking line of credit inquiry.


@jazzyvar84 wrote:

I didn't think they'd be checking my credit profile unless I applied for something else. My life would be perfect, if I didn't have these darn loans. 😞 


Lenders are constantly pulling your credit for account reviews. If you request your reports you can see all the soft inquiries.

    
Message 12 of 25
OmarGB9
Community Leader
Super Contributor

Re: Checking line of credit inquiry.

As far as your student loans go, most (all? Paging  @calyx) federal SL lenders are willing to work with you to work out a comfortable payment plan that works for both of you, so I'd call them up and see if you can work something out, and do it now BEFORE things start going south, as they'd be less likely to help you out after you miss a bunch of payments and default.


Last App: 1/10/2023
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Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 13 of 25
jazzyvar84
Regular Contributor

Re: Checking line of credit inquiry.

I have spoken to them and this is the best they could offer. Sometimes I wish I had just taken up a physical trade and avoided college altogether. 

Message 14 of 25
FinStar
Moderator Emeritus

Re: Checking line of credit inquiry.


@jazzyvar84 wrote:

@Brian_Earl_Spilner wrote:

You also have to keep in mind that once your score tanks, there's always a chance of adverse action which could include closure of the LoC


I didn't think they'd be checking my credit profile unless I applied for something else. My life would be perfect, if I didn't have these darn loans. 😞 


Lenders periodically check your reports as part of ordinary account reviews.  So, it's not limited to when you apply for anything.

Message 15 of 25
Anonymous
Not applicable

Re: Checking line of credit inquiry.


@jazzyvar84 wrote:

Hello. My student loans are federal. With income based, I could pay $1,200, then each year it will increase. I would be forgiven the rest after 120 payments. I just don't see how I could afford it. 


There are more options for fed loans than you have found. The payments dont increase each year. The simulator includes a 2% income increase annually, hence why it shows you increasing payments.

 

Basically you need to call. There really is little reason to default on fed loans, trust me I have defaulted previously, and there was zero reason to except fear of calling them.

 

Maybe who you spoke to had little clue of all the options. I would call back and talk to someone else. The amount will be high now if you have higher income. If your income decreases, you call again. You can call when your income increades, but they tell you that you are only required to recertify once a year, so that is not necessary, but if income decreases or you lose your job, I would not hesitate to call again and have your payments adjusted.

 

Maybe they were talking ICR - income contingent repaykent. Therr are so many options. Income based repayment is usually easiest and most flexible, while ICR is literally one of the worst options. Worst case, ask for deferment or forebearance.

 

Income based repayment will be based on your current income. The minute it drops, call in - they will lower your payment as low as $0/mo, if your income and bills reflect that - if you cannot afford what they quote, tell them you want to break down your bills and not just use their standard calculation. If you are not working at all, call in - there is deferment and forebearance options.

 

How much are your SLs? 200-300k? Or more? $1800 sounds like a lot for IBR unless you have 300k+ in SLs. That sounds more like standard repayment amounts.

 

I wouldnt double down on debt to pay fed loans, just call them!

Message 16 of 25
calyx
Super Contributor

Re: Checking line of credit inquiry.

@Anonymous  to the rescue!

 

@jazzyvar84  - please heed their words - There is no way in the world that IBR/IDR is $1200 unless you are making serious cash.    I have a pretty good income and ICR was ~200 for me!   Someone isn't helping you like they should.   Servicers are known to have pretty bad customer service, so this doesn't surprise me.

 

What kind of student loans are these?  Direct?  FFEL?  
Either way, there are options for you, I swear - You don't need to let them go into default.


And if you do, I hope you realize that they can garnish your wages (and tack on HUGE fees) so that's not the answer (my garnished wages were 3x what I had to pay on ICR, 2x what "standard" payment plan was).

Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 17 of 25
jazzyvar84
Regular Contributor

Re: Checking line of credit inquiry.

They're all federal loans. I just don't see how I could do it with my salary. I'm going to give them another call today. Thanks so much for responding. 

Message 18 of 25
SouthJamaica
Mega Contributor

Re: Checking line of credit inquiry.


@jazzyvar84 wrote:

Hello all,

 

i have been building my credit for over three years now and all my scores are above 730. I was wondering if applying for a checking line of credit was worth the hard pull. I have $66,400 in credit card limits. My car is paid for and I just think the credit mix would be great. Full disclosure. I'm afraid that I won't be able to make student loan payments in the future, so I'd rather have access to all the wonderful perks of good credit even after my credit tanks when student loans go into default. As of now, I have zero late payments and my utilization is at 17%. Should I apply for the CLOC? Any advice would be appreciated. 


I think it's a great idea to have a line of credit as a backup, especially with a credit union.  But since you're probably really going to make use of it, you should shop around for one with a good low interest rate. There are big differences in interest rates. Some are a ripoff. For example, some of my PLOC rates are as follows:

-7.25% Langley FCU  (Great IMHO)

-8.75% Affinity FCU

-9.49% Santander Bank

-10.25% PenFed

-13.9% NFCU (Horrible IMHO)

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 687

Message 19 of 25
LawStudentCivilis
Established Contributor

Re: Checking line of credit inquiry.


@jazzyvar84 wrote:

They're all federal loans. I just don't see how I could do it with my salary. I'm going to give them another call today. Thanks so much for responding. 


Sounds like you need to consolidate your federal loans into one (NOT consolidated into a private loan), and stick with IBR. There are some holes here, please be sure to adequately answer questions as members here have a wealth of knowledge and give great advice.

Message 20 of 25
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