How does it effect my credit?

[Anonymous]

Hi,

I have a question that I hope someone can answer. I am currently a student seeking to take out additional student loans to pay for schooling and what not. I have used all my federal up (which wasn't much to begin with) and already have a 5,000 private student loan with Citibank.

1. I need to take an additional 5000 within the next month and a half. How will this affect my FICO? (Currently 671)
2. If I would need a cosigner, how does this affect their FICO?

3. Would it be smart to take a little extra, maybe 1 to 2 extra thousand to pay off credit cards and close those accounts?

Please help! Thanks!

-EDITED

Message Edited by llecs on 01-14-2009 12:30 AM

[Anonymous]

Try to avoid private student loans at all costs.  They are evil.  

I do not know the immediate affect on your score or your co-signer's, but I'd expect it to go down a little.

If you make on-time payments, it will help your co-signer's score (and yours).  If you default, their score (and yours) will tank.

If you need $5000, take out $4000 and scrounge up the last $1000 by working another job and cutting your expenses.  Do not take more than you need, ever.