I Have A Dream!!! To Become A Credit Master And I Need Your Help & Wisdom!

[Rags847]

OK. A newbie here finally turning his attention to credit matters. Glad I discovered this huge board with it's overflowing wealth of good info. On the advise of this board I went to myFICO.com yesterday and bought my scores. Now I need direction in deciding future actions to take to realize my credit potential and my credit-dependent goals.

I have many questions.

 

First my reports:

 

TransUnion

FICO® Score Summary

Your TransUnion FICO® score: 789

 

On June 9, 2008

 

Your TransUnion FICO® score is great

 

Below are factors in your credit report that are hurting or helping your score:

Payment history Great

Amount of debt Great

Length of credit history Very Good

Amount of new credit Good

 

Understanding Your FICO® Score - What’s hurting your FICO® score

1. You have not established a long revolving credit history.

Your first revolving account was opened 12 Years ago

FICO High Achievers opened their first revolving account 19 years ago, on average.

 

What’s helping your FICO® score

1. You have no missed payments on your credit accounts.

2. You've limited the use of your available credit. Ratio of your revolving balances to your credit limits 6%

For FICO High Achievers , this ratio is 7%, on average.

3. You have an established credit history. Your oldest account was opened12 Years ago

FICO High Achievers opened their oldest account 19 years ago, on average.

Average age of your accounts 6 years

Most FICO High Achievers have an average age of accounts between 6 and 12 years.

Your FICO score measures the age of your oldest account and the average age of your accounts. Your FICO score was helped because you have a relatively long credit history and you haven't recently opened many new accounts.

4. You've shown recent use of credit cards.

 

Credit At-A-Glance

 

No accounts past due

Credit history 12 Years

Late payments 0

Total balance of:

Your revolving accounts $29

Your mortgages None

Your installment loans None

Total number of Accounts 2

Accounts with balances 1

Accounts opened in past year 1

Recent inquiries 0

Collections 0

Public Records 0

Statements None on file

 

Accounts

 

Credit Card Bank Of America XXXX 4/2008 $29 Paid or paying as agreed

Credit Card Discover Financial Servi XXXXXXXXXXXX 6/1996 $0 Paid or paying as agreed

 

Account Details

Charge Card Bank Of America

Status as of May, 2008

Date opened Apr, 2008

Credit limit $500

Largest past balance $29

30 days late 0 times

60 days late 0 times

90+ days late 0 times

 

Charge Card Discover Financial Servi

Status as of May, 2002

Date opened Jun, 1996

Date of last activity Not Reported

Date paid out Not Reported

Date closed Nov, 2001

Credit limit $6,500

Largest past balance $0

Scheduled payment amount Not Reported

Account status Account is Closed * Account closed by consumer

Seven year payment history

30 days late 0 times

60 days late 0 times

90+ days late 0 times

Worst Delinquency None Reported

 

Qts on my TU:

1. My main goal is to return to school (finish undergrad, then do grad school) starting this Fall (in my 30s) and get private school loans this summer. Is my credit history established or not well established? I have no past mortgage loans, auto loans, etc., and just 2 credit cards in my past.

2. The Discover Card '96 - '02 had a credit limit of $6500 and 0 lates, but the highest balance was $0 - I never used it. Is that a good or bad thing as far as a lender determining risk? I didn't show I could actively use a card and pay it off. My brand new BOA Card only has a $500 limit.

3. Should I use my TU score to obtain another new credit card with a higher limit (in the $1000s)? Will this help me in obtaining private school loans (showing a credit card with a higher limit)? Or will it just hurt my score since it will be another credit card in the same year and it will take down my average age of accounts (from 6 years to 4 years, I think)?

4. There are 2 inaccuracies on the TU report. My middle initial and my current address. It shows my past address as my current one. And my current address as my past one. It also doesn't list some inbetween addresses I lived at. Is that a concern? Also, should I tell them about some past addresses they don't have listed? I plan on using the dispute letter screen at myFICO to try and correct these before I apply for a private school loan. How key is this?

5. How can I find out which lenders pull TU only - especially for private school loans?

6. To be pre-approved for a loan results in a soft pull and doesn't lower the credit score? So, I can see if I'm pre-approved for as many school loans as I want, but decide on only 1 or a few (3 tops?) to actually apply for and have a hard pull result?

7. I have been at the same job for 2 1/2 years and the same address for 2 years. Is it important to not change jobs or apartments? How heavily does this factor in to lenders' decisions?

8. My income is now 40K. If I did get the private school loan I would only work part time (for 9 months), and then full time in the summer months. How does my income going down to 20K or below effect my obtaining private school loans in future years? How heavily does income weigh in getting private school loans (earning 40K, 20K, 10K, 0K/year)?

9. I have no co-signer. Still possible, with the above TU report, to get a private school loan?

10. What steps should I take over the next year(s) to strengthen my credit report in order to apply for subsequent private school loans down the road? I want to be in school for awhile if I can swing the financing end of it.

 

Yesterday, I tried to buy all three scores from myFICO. myFICO said on the phone (I had to do a phone authorization) that the Equifax and Experican reports were frozen. When I went into the myFICO website and tried to buy them again I found this out:

Equifax - "Equifax was unable to find credit records matching the personal identification information you submitted."

[Qt 11] Woa! How fixable is this?

Experian - "Your credit report does not currently contain enough information to meet the minimum scoring criteria required to calculate a FICO® score. In order for a FICO® score to be calculated, a report must contain:

1. At least one account which has been open for six months or more.

2. At least one account that has been updated in the past six months.

[Qt 12]. So Experian doesn't have any record of my Discover or BOA card? I proceed by filing a dispute letter? Should I send them my TU report?

 

Then I went to annualcreditreport.com to get my free report (sans the score).

Equifax - "You may have a Security Freeze on your credit file, an Active Duty Military or Fraud Alert, or the identification information submitted online may not match the information on file" And then gave info on how to request it by mail.

Experian - I was able to get the Experian free report. It had my BOA card, but not my past Discover card listed. It had 3 inquiries shared with others: Citi '06 (scheduled to be on record until Aug '08) and two for BOA (4/3/08 and 4/4/08). [Qt 13] Can I get one of the BOA inquiries removed? When I obtained the card it was towards the end of the day in the bank branch, the guy called and said he couldn't get through, would try tomorrow and let me know. So, now I find out I have 2 inquiries! The Experian report also lists various names and addresses for me. The only things that are wrong are the middle initial on one, the one phone # it lists for me isn't the current one or one I recognize, and the only employer it lists isn't the current one, it's one from 8 years ago!

 

Then I did one other thing, I bought a Experian VantageScore Report.

[Qt 14] What is a VantageScore report and how much weight should I give it?

The results weren't good:

"Your VantageScore is: 693 on a scale of 501-990. Your Risk Grade is: D. Your Credit Category is: Non-Prime (Scale: High Risk/Non-Prime/Prime/Prime Plus/Super Prime).

[Qt 15] I guess this score is skewered because Experian doesn't have my Discover card listed and has that extra BOA inquiry or has my account frozen. How should I proceed?

 

OK. There is my first step. I have a week off of work starting on the 16th and I really want to become a credit expert, figure out my next steps, learn how to open up, dispute and fix up my three credit reports, and apply successfully for private student loans ([Qt 16] Is there any expert I can hire that would help with these issues and with applying for private school loans? A private financial aid adviser that one can hire? I need this to be successful!)

Any help with my project would be very much appreciated.

Any wise credit gurus out there willing to reply to my long thread with its many questions?.

Thanks in advance if there are.

Long live The CREDITBOARDS!!!

Later ,

 

Rags

[Rags847]

[MSUAlexis]

Vantage score means nothing, really, from what I understand. Only myFICO scores count - and yours is great. One quick question - why would you want private school loans? The interest rates on federal loans are great, and if I read things right, they are only going to get better. I have a large amount of federal loans, and I have never had any issues with them. Anything in particular pushing you toward privately-held? And if so, you may wish to check out the Student Loan forum.

[messager]

1. My main goal is to return to school (finish undergrad, then do grad school) starting this Fall (in my 30s) and get private school loans this summer. Is my credit history established or not well established? I have no past mortgage loans, auto loans, etc., and just 2 credit cards in my past.

 

YOUR CREDIT IS NOT WELL ESTABLISHED. YOU HAVE A LONG HISTORY BUT YOU DIDN'T USE WISELY THE FEW ACCOUNTS YOU HAVE. GO BACK TO SCHOOL IS A GOOD THING BUT YOU HAVE TO START CLEANING YOUR REPORTS AND GET THEM STRAIGHT. BANKS LIKE PEOPLE THAT HAVE DIVERSE TYPE OF ACCOUNTS ON THEIR REPORTS. THAT'S THE REASON WHY YOUR SCORE IS IN THE HIGH 700. YOU DON'T NEED A PRIVATE LOAN YOU CAN APPLY FOR A FEDERAL LOAN AND YOU DO NOT NEED CREDIT SCORE TO DO THAT. WITH THAT SCORE YOU MIGHT GET THE PRIVATE LOAN. BUT YOU DON'T HAVE A HISTORY OF HANDLING INSTALLEMENT LOAN

 

2. The Discover Card '96 - '02 had a credit limit of $6500 and 0 lates, but the highest balance was $0 - I never used it. Is that a good or bad thing as far as a lender determining risk? I didn't show I could actively use a card and pay it off. My brand new BOA Card only has a $500 limit.

 

BAD NOT TO USE A CARD YOU APPLIED FOR. CALL DISCOVER AND ASK IF THE ACCOUNT IS OPEN. TRY TO UPDATE YOUR INFORMATION ON THE ACCOUNT. IF THE CARD IS CLOSE TRY TO OPEN ANOTHER ONE WITH THEM. YOU CAN USE YOUR CARDS EVERY MONTH AND PIF. BEST WAY TOP USE A CREDIT CARD.

 

3. Should I use my TU score to obtain another new credit card with a higher limit (in the $1000s)? Will this help me in obtaining private school loans (showing a credit card with a higher limit)? Or will it just hurt my score since it will be another credit card in the same year and it will take down my average age of accounts (from 6 years to 4 years, I think)?

 

YOU'RE NEVER SURE WHICH CREDIT REPORT A LENDER WILL PULL. GO ON AN APPLICATION SPREAD FOR LIKE 2 TO 3 CARDS. YOUR SCORE WILL DROP AND IN 6 MONTHS IT WILL GO RIGHT BACK UP. EVEN HIGHER. YOUR HISTORY WILL BE SHOTERNED BUT IT IS OK.

 

4. There are 2 inaccuracies on the TU report. My middle initial and my current address. It shows my past address as my current one. And my current address as my past one. It also doesn't list some inbetween addresses I lived at. Is that a concern? Also, should I tell them about some past addresses they don't have listed? I plan on using the dispute letter screen at myFICO to try and correct these before I apply for a private school loan. How key is this?

 

YOU CAN DISPUTE THAT THROUGH THE WEBSITE. AND ALSO TRY TO UPDATE YOUR INFO WITH THE BANKS YOU HAVE YOUTR CREDIT CARDS WITH

5. How can I find out which lenders pull TU only - especially for private school loans?

 

YOU'RE NEVER SURE WHICH ONE THE WILL PULL. YOU BETTER OFF WORKING ON ALL YOUR CREDIT REPORTS TO GET THEM ON TRACK. SEEMS LIKE YOU DON'T HAVE ANY FILE WITH THE OTHER TWO BUREAUS YET.

 

6. To be pre-approved for a loan results in a soft pull and doesn't lower the credit score? So, I can see if I'm pre-approved for as many school loans as I want, but decide on only 1 or a few (3 tops?) to actually apply for and have a hard pull result?

 

ARE YOUR REPORTS ACCESSIBLE FOR PROMOTIONAL PURPOSES? AS SOON AS YOU CLEAN THE REPORTS GOODS YOU WILL START RECEVING SOME GOOD OFFERS

 

7. I have been at the same job for 2 1/2 years and the same address for 2 years. Is it important to not change jobs or apartments? How heavily does this factor in to lenders' decisions?

 

STABILITY AT JOBS AND ADDRESS SHOW LENDERS YOU ARE RESPONSIBLE.

 

8. My income is now 40K. If I did get the private school loan I would only work part time (for 9 months), and then full time in the summer months. How does my income going down to 20K or below effect my obtaining private school loans in future years? How heavily does income weigh in getting private school loans (earning 40K, 20K, 10K, 0K/year)?

 

THE BEST STUDENT LOAN IS THE FEDERAL. THERE IS NO INCOME REQUIREMENTS. PRIVATE LOAN I'M NOT SURE. FILL OUT THE FAFSA

9. I have no co-signer. Still possible, with the above TU report, to get a private school loan?

 

YOU DON'T NEED A COSIGNER WITH THAT KIND OF SCORE.

 

10. What steps should I take over the next year(s) to strengthen my credit report in order to apply for subsequent private school loans down the road? I want to be in school for awhile if I can swing the financing end of it.

 

OPEN A COUPLE REVOLVING ACCOUNTS, TRY TO GET A SMALL INTALLEMENT LOANS TO SHOW SOME HISTORY, CLEAN UP OBSOLETE INFORMATION. BUILD UP YOUR EXPERIAN AND EQUIFAX REPORTS.

 

Yesterday, I tried to buy all three scores from myFICO. myFICO said on the phone (I had to do a phone authorization) that the Equifax and Experican reports were frozen. When I went into the myFICO website and tried to buy them again I found this out:

Equifax - "Equifax was unable to find credit records matching the personal identification information you submitted."

[Qt 11] Woa! How fixable is this?

 

CALL EQUIFAX. THEY MIGHT NOT HAVE ANY INFORMATION ON YOU. I KNOW DISCOVER START ON TRANSUNION AND THEN TO THE OTHER CREDIT BUREAUS. BUT THE WAS NEVER USED SO THEY DIDN'T REPORT TOTHE OTHER BUREAUS.

 

Experian - "Your credit report does not currently contain enough information to meet the minimum scoring criteria required to calculate a FICO® score. In order for a FICO® score to be calculated, a report must contain:

1. At least one account which has been open for six months or more.

2. At least one account that has been updated in the past six months.

[Qt 12]. So Experian doesn't have any record of my Discover or BOA card? I proceed by filing a dispute letter? Should I send them my TU report

 

YOU HAVE TO OPEN NEW ACCOUNTS. YOU CANNOT DISPUTE INEXISTENT REPORT.

 

Then I went to annualcreditreport.com to get my free report (sans the score).

Equifax - "You may have a Security Freeze on your credit file, an Active Duty Military or Fraud Alert, or the identification information submitted online may not match the information on file" And then gave info on how to request it by mail.

Experian - I was able to get the Experian free report. It had my BOA card, but not my past Discover card listed. It had 3 inquiries shared with others: Citi '06 (scheduled to be on record until Aug '08) and two for BOA (4/3/08 and 4/4/08). [Qt 13] Can I get one of the BOA inquiries removed? When I obtained the card it was towards the end of the day in the bank branch, the guy called and said he couldn't get through, would try tomorrow and let me know. So, now I find out I have 2 inquiries! The Experian report also lists various names and addresses for me. The only things that are wrong are the middle initial on one, the one phone # it lists for me isn't the current one or one I recognize, and the only employer it lists isn't the current one, it's one from 8 years ago!

 

YOU SHOULD DISPUTE ONE INQUIRY AS DUPLICATE AND IT WILL BE REMOVED.

 

Then I did one other thing, I bought a Experian VantageScore Report.

[Qt 14] What is a VantageScore report and how much weight should I give it?

The results weren't good:

"Your VantageScore is: 693 on a scale of 501-990. Your Risk Grade is: D. Your Credit Category is: Non-Prime (Scale: High Risk/Non-Prime/Prime/Prime Plus/Super Prime).

[Qt 15] I guess this score is skewered because Experian doesn't have my Discover card listed and has that extra BOA inquiry or has my account frozen. How should I proceed?

 

YOU HAVE BAD CREDIT PER EXPERIAN BECAUSE OF NON USAGE AND NOT ENOUGH INFORMATION. A VANTAGE SCORE IS ONE THE STATISTICAL GRADING MEASURED AND USED BY EXPRIAN IN BRIEF. IT'S LIKE THE FICO SCORE. BUT WITH DIFFERENT MODEL OF CALCULATION

 

OK. There is my first step. I have a week off of work starting on the 16th and I really want to become a credit expert, figure out my next steps, learn how to open up, dispute and fix up my three credit reports, and apply successfully for private student loans ([Qt 16] Is there any expert I can hire that would help with these issues and with applying for private school loans? A private financial aid adviser that one can hire? I need this to be successful!)

Any help with my project would be very much appreciated.

Any wise credit gurus out there willing to reply to my long thread with its many questions?.

Thanks in advance if there are.

Long live The CREDITBOARDS!!!

 

JUST BY READING THE BOARD YOU CAN DO A LOT. TRY TO UPDATE THE INFORMATION ON YOUR CREDIT FILE. THERE IS NO MUCH DISPUTE SINCE YOU HAVE ONLY SOME INFORMATION. UPDATE YOUR DISCOVER CARD ACCOUNT WITH DISCOVER. START UDING YOUR CARD AND PIF. APPLU FOR A COUPLE MORE CARD. GET AROUNG 4 CARDS THAT REPORTS. YOU CAN APPLY FOR HSBC, CITICARD, CHASE, A CREDIT UNION CARD. YOU CAN ALSO GET A CREDIT MONITORING SERVICE FROM WHICH YOU CAN PULL EVERYDAY. YOU HAVE CREDITKEEPER, CREDITKARMA, TRUECREDIT....

THERE ARE PEOPLE HERE THAT KNOWS A LOT. YOU CAN PM ME SOMETIMES AND OTHER PEOPLE HERE AND THEN ASK YOUR QUESTIONS ONE BY ONE. I JUST GAVE YOU SOME GENERAL IDEAS.

Edited June 11, 2008 by messager

[Rags847]

One quick question - why would you want private school loans?

 

Thank you very much MSUAlexis and messager for your replies

Why I'm looking into a private loan this summer? My situation is this: I live in the Boston area. Extremely desire to go back to school (in my 30s) and finish my undergrad and then go to grad school. Looked into two schools UMASS Boston and The Harvard Extension School - both are very good and their cost is low (only $800/course). Decided, for various reasons, on The Harvard Extension School. The way it works there is you start as a non-admitted student, take three prerequisite courses (including a writing one), if you pass with a B or above and write an application essay, you're likely to be admitted for the next semester as degree candidate (ALB - Bachelor Of Liberal Arts). Then you can see how many courses from any past college work you can transfer over. Admission is based on your work now and not your past college work. They cater to the older adult returning to school. It is a pretty excellent deal. 40% of the courses taught by Harvard professors, etc.

So, I'm turning to private loans for the first semester, since I won't be eligible (until I'm an admitted student) for federal until the Spring '09. If I can swing one now, I could take all three prerequisite courses at once - go to school full-time, work part-time. For the Spring of '09 I'd certainly delve into all federal loan, scholarship, grant, etc, options and continue to work part-time (just 2 nights a week in a restaurant will pocket me $200-300/wk and cover my rent cost) and then work full time in the summer for additional $. But even then I might still need to delve into the private student loan option to cover all expenses. But, I'll certainly keep that to a minimum.

That is why my interest in private student loans.

If I can swing all the financing, and defer loans until after grad school, it will mean I can go to school full-time and really delve into intellectual and meaningful work.

Plan is to fix up and shine my credit to the full to make this happen and avoid Plan B. Plan B is continuing to work full-time and go to school only part-time - slower and less attractive.

Thanks much for any help!

Later ,

 

Rags

 

P.S. And thanks messager for taking the time to tackle all my questions. I saw your story on here. Hope all is going well financing grad school and paying off that credit card. I'll have more time to respond tomorrow.

Edited June 11, 2008 by Rags847

[Rags847]

TRY TO GET A SMALL INTALLEMENT LOANS TO SHOW SOME HISTORY

 

Cool. How would I go about this? Would using peer-to-peer lender site be a good option? Take a $500 loan, say, and then pay it off on time. It would show that I can handle loan payments and my score would increase? If so, it is best to pay it off under the original terms (3 years) or better/worse if one did it in 6 months?

 

Rags

Edited June 12, 2008 by Rags847

[Rags847]

Newbie qt. on pre-approval vs approval. I want to apply for private student loans this summer. Is it true that I can apply for pre-approval to 20 different lenders and it won't affect my credit score because it will just be a soft pull vs a hard pull? And only when I've narrowed it down to between 1 - 3 pre-approval offers do I actually apply, a hard pull inquiry is done, and my score goes down a few points (5 pts per hard pull)?

When they do a pre-approval do they soft pull one's credit report to look at one's scores or do they just ask you what your score is on a form and only check it later when they do a hard pull?

I know nuthin' about this here

Later,

 

Rags

[Rags847]

ttt

[Rags847]

Which lenders usually pull TU?

 

Anyone know?

[ryanp]

Which lenders usually pull TU?

 

Anyone know?

 

Not very many pull strictly TU. The ones I know of are:

 

Juniper

National City

Hooters/Merrick

Discover (Maybe, not 100% sure)

 

Still, even though they usually pull TU, I have had juniper and national city pull an equifax report, too.

[Rags847]

Thanks Good to know.

[lupoman]

TRY TO GET A SMALL INTALLEMENT LOANS TO SHOW SOME HISTORY

 

Cool. How would I go about this? Would using peer-to-peer lender site be a good option? Take a $500 loan, say, and then pay it off on time. It would show that I can handle loan payments and my score would increase? If so, it is best to pay it off under the original terms (3 years) or better/worse if one did it in 6 months?

 

Rags

 

Try and get a small installment loan from your bank or credit union. If you have cash on hand a good way is to purchase a CD from the bank, 6 month or more. Then apply for a loan from that bank using the CD to secure the loan.

 

Also check if that Discover card is still open, if so, go buy a coke and a bag of chips at the store, then wait for a statement. That should give discover some time to report it and also will back date to the time you opened it to report to the other 2 CRA's.

 

Good Luck!

[radi8]

Qts on my TU:

1. My main goal is to return to school (finish undergrad, then do grad school) starting this Fall (in my 30s) and get private school loans this summer. Is my credit history established or not well established? I have no past mortgage loans, auto loans, etc., and just 2 credit cards in my past.

 

Your credit is excellent. The problem is you have a thin file without much recent activity. You can fix that by adding another account- I'd go for a small secured installment loan in your case- you aren't rebuilding, just fattening a thin file.

And use the credit cards. Let a balance revolve for a month and pay it off here and there. Those two things will give you the push you need.

Don't go opening a bunch more cards or go on an application spree. The inquiries and the damage to your average account age will hurt you more then another revolving account or two will help you.

The advice for rebuilding does NOT apply to you- you aren't rebuilding, you are already established. You are doing some minor tweaking.

 

 

2. The Discover Card '96 - '02 had a credit limit of $6500 and 0 lates, but the highest balance was $0 - I never used it. Is that a good or bad thing as far as a lender determining risk? I didn't show I could actively use a card and pay it off. My brand new BOA Card only has a $500 limit.

High balance doesn't mean much. Use the card once a month and pay it off. Every few months let a small balance revolve- them pay it off.

 

 

3. Should I use my TU score to obtain another new credit card with a higher limit (in the $1000s)? Will this help me in obtaining private school loans (showing a credit card with a higher limit)? Or will it just hurt my score since it will be another credit card in the same year and it will take down my average age of accounts (from 6 years to 4 years, I think)?

In my opinion the inquiry and reduction in average age will hurt you more than the additional revolving account will help. The exception is if you know you'll get a nice high credit limit. You don't need another <$1K card.

Have you considered calling your existing creditors and asking for a limit increase?

 

 

 

4. There are 2 inaccuracies on the TU report. My middle initial and my current address. It shows my past address as my current one. And my current address as my past one. It also doesn't list some inbetween addresses I lived at. Is that a concern? Also, should I tell them about some past addresses they don't have listed?

Your current address should be correct- that can wreak havoc in verifying your identity. Previous addresses are just clutter and aren't necessary. Don't bother trying to have them added.

 

 

5. How can I find out which lenders pull TU only - especially for private school loans?

Most direct way is to search their website for clues- or to ask them.

 

 

6. To be pre-approved for a loan results in a soft pull and doesn't lower the credit score?

I don't know if they pull a soft or a hard. You are correct that a soft doesn't hurt your scores.

 

So, I can see if I'm pre-approved for as many school loans as I want, but decide on only 1 or a few (3 tops?) to actually apply for and have a hard pull result?

If they pull a soft for pre-approval- yes.

 

7. I have been at the same job for 2 1/2 years and the same address for 2 years. Is it important to not change jobs or apartments? How heavily does this factor in to lenders' decisions?

Being there for at least a year is important. 2 years is even better. It shows stability. How heavily it factors into the decision is up to the lender- FICO doesn't look at either for scoring.

 

8. My income is now 40K. If I did get the private school loan I would only work part time (for 9 months), and then full time in the summer months. How does my income going down to 20K or below effect my obtaining private school loans in future years?

If your debt to income ratio is still acceptable at the new lower income, it shouldn't be an obstacle.

 

How heavily does income weigh in getting private school loans (earning 40K, 20K, 10K, 0K/year)?

Less so that for other type loans. Student's aren't expected to bring in $40K/year- they are students, lol.

 

9. I have no co-signer. Still possible, with the above TU report, to get a private school loan?

IMO with your TU score- yes- still possible.

 

10. What steps should I take over the next year(s) to strengthen my credit report in order to apply for subsequent private school loans down the road? I want to be in school for awhile if I can swing the financing end of it.

See above. Show some activity on the cards you have. Ask for limit increases without having to open new cards. Consider a small, installment loan to fatten up your file. Don't get it from a "finance company" like Beneficial or Citi Financial- that is a negative unto itself. Go to a Local bank or credit union. Don't load up with inquiries, carry high balances on the cards for too long, or open a bunch of new accounts dragging down your excellent average age.

 

Yesterday, I tried to buy all three scores from myFICO. myFICO said on the phone (I had to do a phone authorization) that the Equifax and Experican reports were frozen. When I went into the myFICO website and tried to buy them again I found this out:

Equifax - "Equifax was unable to find credit records matching the personal identification information you submitted."

[Qt 11] Woa! How fixable is this?

Might be a simple address mismatch. Call them. You may have to send in a photocopy of your driver's license and such.

 

Experian - "Your credit report does not currently contain enough information to meet the minimum scoring criteria required to calculate a FICO® score. In order for a FICO® score to be calculated, a report must contain:

1. At least one account which has been open for six months or more.

2. At least one account that has been updated in the past six months.

[Qt 12]. So Experian doesn't have any record of my Discover or BOA card? I proceed by filing a dispute letter? Should I send them my TU report?

No dispute, no sending the TU report. The problem with the scoring is one of your cards has no recent activity and isn't currently reporting on Exp- and the other is too new. Use the discover and let it report some activity- and check again after it reports.

 

Can I get one of the BOA inquiries removed? When I obtained the card it was towards the end of the day in the bank branch, the guy called and said he couldn't get through, would try tomorrow and let me know. So, now I find out I have 2 inquiries!

You could dispute it as "duplicate". It's harmless though, you are far from having too many.

 

 

The Experian report also lists various names and addresses for me. The only things that are wrong are the middle initial on one, the one phone # it lists for me isn't the current one or one I recognize, and the only employer it lists isn't the current one, it's one from 8 years ago!

None of that- except for the wrong middle initial- matters. The employer and phone number aren't relevant to your creditworthiness.

 

Then I did one other thing, I bought a Experian VantageScore Report.

[Qt 15] I guess this score is skewered because Experian doesn't have my Discover card listed and has that extra BOA inquiry or has my account frozen. How should I proceed?

Right. It's low because it isn't seeing "enough" accounts. See above- get the Discover reporting.

 

Is there any expert I can hire that would help with these issues and with applying for private school loans?

The most direct way is to ask the lender directly what they want to see in a successful applicant- then work on meeting or exceeding those requirements. Make some phone calls, talk to the underwriters if you can.

 

A private financial aid adviser that one can hire? I need this to be successful!)

I've heard they are out there, I have no idea if they are actually useful or well- informed- or merely skilled at separating you from your money. They can't do much you cannot do yourself with some phone calls and letters.

[radi8]

TRY TO GET A SMALL INTALLEMENT LOANS TO SHOW SOME HISTORY

 

Cool. How would I go about this? Would using peer-to-peer lender site be a good option? Take a $500 loan, say, and then pay it off on time. It would show that I can handle loan payments and my score would increase? If so, it is best to pay it off under the original terms (3 years) or better/worse if one did it in 6 months?

 

Rags

 

 

Skip the peer-to-peer stuff. Do as lupoman said- go to your local bank or CU. Avoid subprime lenders and finance companies.

Take out $1K and put the proceeds in savings. A one- year term will work nicely and save you interest over a 2 or 3. When you apply for the student loans, the installment loan balance will be paid off or nearly so- which will help with your approval- since the payment won't figure into your debt to income ratio.

Make your monthly payments from the savings- set it up for autopay if you like. You'll have to kick in for the accrued interest towards the end of the loan as your savings will empty out before your last payment.

(If you borrow $1K over 12 months at 12%, you will have to kick in $66 for the interest)

The idea is to build payment history so pay it over the full term, not accelerated.

[Rags847]

Skip the peer-to-peer stuff. Do as lupoman said- go to your local bank or CU. Avoid subprime lenders and finance companies.

Take out $1K and put the proceeds in savings. A one- year term will work nicely and save you interest over a 2 or 3. When you apply for the student loans, the installment loan balance will be paid off or nearly so- which will help with your approval- since the payment won't figure into your debt to income ratio.

Make your monthly payments from the savings- set it up for autopay if you like. You'll have to kick in for the accrued interest towards the end of the loan as your savings will empty out before your last payment.

(If you borrow $1K over 12 months at 12%, you will have to kick in $66 for the interest)

The idea is to build payment history so pay it over the full term, not accelerated.

 

 

Thank you so so much radi8 for the time taken in giving a detailed response and excellent advise!

 

A newbie question for anyone: How does debt-to-income-ratio work exactly?

If this year I took out 10K in federal and private loans and my '07 income was 40K, my ratio is 1:4 or .25?

And if in subsequent years I take out another 10K/yr and my income drops to 18k/yr say (working part-time during school year and full-time summers) is my debt-to-income ratio 10:18 or .6? Or is it cumulative? 2nd year debt-to-income ratio 20(10K 1st year + 10K 2nd year):18 or 1.1? 3rd year 30:18? 4th year 40:18? Total debt incurred over the years to this one year's income?

And as it adds up, does it became harder and harder to qualify for and get private student loans?

Later

 

Rags

Edited June 16, 2008 by Rags847

[hegemony]

YOU SHOULD DISPUTE ONE INQUIRY AS DUPLICATE AND IT WILL BE REMOVED.

why? the inqs are treated as one by FICO. Instead of recommending a dispute with the CRA, perhaps you should recommend the OP contact the creditor to resolve the situation?

[Rags847]

YOU SHOULD DISPUTE ONE INQUIRY AS DUPLICATE AND IT WILL BE REMOVED.

why? the inqs are treated as one by FICO. Instead of recommending a dispute with the CRA, perhaps you should recommend the OP contact the creditor to resolve the situation?

 

Cool. Thanks hegemony. So, it's best if I contact BOA. Any do's/don'ts for doing this? I'm just going to call BOA tomorrow and hopefully it will be a simple matter.

[Rags847]

ttt