Student Credit What A Bank will ask you for if you need a Loan

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Student Credit: What A Lender will ask you regarding if you need a Loan

As many individuals complete their four years of college, one of the benefits for such hard work often will be a brand new car. This article will provide you with some insights in to what a bank could search for when you are purchasing a used or new (new to you!) automobile. Thinking about purchasing that new car goes beyond just your credit but this is a critical piece of the puzzle.

When you go to speak with a loan officer regarding taking out a car loan, make sure to think ahead of time what type of car you want to acquire or whether you want to be pre-approved. One of the tips you will want to think about possibly before meeting with any loan officer or although your meeting is what price range you are comfortable with and what kind of payment per month you will want to pay. A lot of people care only about that the monthly payment will be. You want your monthly payment being as comfortable as you can while still working to repay the car as quickly as possible.

Your credit will play a factor in whether you are approved or declined for the loan. This is where your diligent operate in building good credit although a student will pay away from. If your credit is excellent, you can find a great deal and have a lender or the dealership combat for your business. The difference between good credit and also fair credit can be a variation of three proportion points or more on your own loan potentially. Think about that. If you have a 10000 dollar loan and have to pay three percent much more because your credit is not strong, that can end up charging you about two hundred fifty dollars your first year and about five hundred dollars as a whole if it takes you 5 years to pay back the loan. That’s a lot of money to be losing because you were not accountable with your money.

The next factor when dealing with banks and what they will need within you is how much money you’ll be making. The bank uses your credit report to observe what debts you have already to pay and what are the monthly payments are. They will then take simply how much you will have to pay for lease along with the car transaction you wanted to find how much debt you have to pay each month. They will then break down this number against what you make in a month and come up with a percentage. The number is supposed to be under 40% so that you still have room left within your month-to-month income to eat, pay bills, and do other fun stuff. This makes sure that you can spend all of your bills easily while still creating a good life.

Ideally this article on pupil credit and what a lender will ask from you when looking to get a loan has been instructional. Being approved for the loan is dependant on two factors: the debt to income and your credit. When looking for a car, locate something you like which isn’t overly elaborate as you do want to have to pay for a great deal for your fresh car. Do you notice exactly what a difference a good credit report can have in keeping a lot more money in your pocket

Comments: 34

  1. Salena April 14, 2013 at 12:38 pm Reply

    I am only 19 and I want to purchase a car. But every dealership I go to is trying to put me in a cheap car I dont want. They say my credit isnt established enough even though i have paid my bills on time! I have one card that Ive had for a year but my other 3, Ive only had about 9 months. So how long will it take for me to have established credit?

  2. Edmond June 20, 2013 at 1:19 am Reply

    I have no credit at all because I am still a student who has not started paying off student loans yet. I don’t have any credit cards, I refuse to get one because of the trouble that could lead to. I have a car that is all paid off because it was my father’s before it was mine, so I don’t pay car payments. The trouble is that I cannot get approved for loans on my own or apply for a contract to rent an appartment without getting my parents to co-sign. The lenders always tell me: “Deffinately come back and see us when you have established good credit.” Well, how am I supposed to get credit of any kind, good or bad, when the only way I see that I can is by getting a credit card that I am “Pre-approved” for already?

  3. Hugo July 20, 2013 at 6:00 am Reply

    Well i will be a college student starting in the fall, and plan on living with my parents while attending community college. I am having a hard time understanding how credit works. By the end of my college career i want to finance a new car but don’t you need financing history. I also want a condo or apartment and don’t you need renter’s history. How does credit and building GOOD credit work?

  4. Marianna July 20, 2013 at 1:22 pm Reply

    I’m not able to get a Student Loan, so I’m planning on looking into a Student Line of Credit at a few different banks just to see what the different options are such as interest rates, minimum monthly payments, and things like that. I’ve never had to look into anything like this so was wondering if anyone has tips on what other questions I should ask/your experience with a certain bank? Thanks! 🙂

  5. Crystle September 25, 2013 at 8:21 pm Reply

    My credit report says I have too many credit report inquiries. How do I stop that?

  6. Clara September 26, 2013 at 11:59 pm Reply

    I have been with Natwest ever since I was 11, so that’s now 6 years. I am planning to change to Halifax when I am 18 though because they offer the best student account.

    I have been told that changing banks affects your credit score, which is why they ask you when you are applying for a loan, mortgage etc for how long you’ve been with your current bank for.

    Is there any truth behind this? Or should I just change?

  7. Sherill October 1, 2013 at 9:15 am Reply

    Seeing as how credit cards were not popular, how were they calculated? Were student loans through the bank or the educational institution? Was it the same principle as it is today–if you are eligible to get a loan, your parent’s income was generally high enough to pay for it anyhow. I am asking this because I am writing a play and it starts out with a guy in the house of the financier of the university, talking to another character, waiting for the calculation to be completed for whether or not he is eligible for a loan. Is this realistic?

  8. Kristopher October 17, 2013 at 4:45 am Reply

    I have good credit, but not much of it. And I want excellent credit.

  9. Clyde October 24, 2013 at 11:33 pm Reply

    I was just wondering what the maximum amount of money you can borrow from lenders in private student loans is estimated to be. I know it depends on credit, etc, and if you’ve exhausted your federal loan options. For example, would I be able to borrow around 20,000 for one year if credit history allowed it?

  10. Sumiko November 5, 2013 at 2:45 pm Reply

    I have 2 judgements on my credit report that aren’t true. I am trying to clean up my credit without paying someone $700.00. Please help if you know anything about getting inquiries and other old accounts, and accounts that doesn’t belong to me.

  11. Ivory November 13, 2013 at 7:36 pm Reply

    Im going to start going to school and I need Braclets for my teeth. I have bad credit so I need to pay $4500 cash. I can try asking the bank for a loan but a student loan seems better

  12. Ronnie December 13, 2013 at 11:53 pm Reply

    I am in the process of filling out a rental application for a home and it requests bank account # and information as a part of the application. Do they have the right to ask for this? Can it be denied by me? They say they need to check if their are sufficient funds, however I am a student and will be receiving money from family and loans. Do they have the right to turn me away as a result of not giving out such important information?

  13. Gertha December 16, 2013 at 11:42 pm Reply

    I’m currently in college and with student loans I am comin to the realization that I need to build up credit (currently needing a co-signer). I am responsible with my money and have absolutely no worries of not being able to pay off my credit card bill. With that being said, I currently only have a steady income during the summer, so I know I may not be approved for some cards. I do, however, have savings. What is a good card for someone in my situation, preferably a card with good benefits and little to no annual fee? I have started to look into the UPromise MasterCard and the sky miles Amex. Suggestions? Thanks!!

  14. Sallie December 17, 2013 at 9:39 pm Reply

    I need to take out a loan to get some extra funds for a downpayment, my income is high but my credit is bad due to a previous consumer proposal to pay off my student loan. Anyway, my husband has great credit but low income…we really need some extra funds for a down payment for a new place, we have a baby on the way…what is the best option to get a line of credit?

  15. Mollie January 2, 2014 at 5:40 pm Reply

    What is a spa loan? How do i go about getting a spa loan for school? How do i know that a spa loan will be the best choice for me? What will i half to pay back,and how long do i half to pay it back?When can i apply for a spa loan? Is a spa loan like a goverment grant?

  16. Rosaline January 14, 2014 at 6:14 am Reply

    I’m a college student and I want a nice reliable car. I’m looking for a Nissan, Honda, or Toyota between the years of 2002-2005. I wanted to put like $1500 down and make payments as small as $175 no more than $200 a month but it seems impossible. Does anybody know what’s the best thing to do?

  17. Janean February 2, 2014 at 10:51 am Reply

    How many different student loans can you have? how soon can you get them before starting college? Is buying a vehicle (with no other vehicle already owned,) with you student loan money ok? Can you pay your living expenses with it? do your parents need good credit to co-sign?

  18. Kori February 21, 2014 at 11:28 pm Reply

    Basically I owe $1000 to financail aid. I lost my job and recent family problems caused me to miss a lot of class. The lady at the finacial aid office told me that since i have missed so much class, that I cannot recieve my pell grant for the new term for the new semester unless I pay off what I owe for the first semester. She informed me that if I pay the $1000 i owe and attend class for 6 months then i would have made enough hours to recieve my pell grant for $2700 which I can use to pay back whoever/whatever bank lended me the $1000 and pay off rest of my tuition. So my question is where are some reliable places to borrow money with no credit and i lost my job recently. I need helpfuul answers this is a hard time for me

  19. Omer February 21, 2014 at 11:29 pm Reply

    Okay, here is my problem. I wish to go to Kent State University. I have been going to my local Community college for two years now and wish to transfer in the spring semester of 2013. I haven’t had to pay for college till I transfer. As far as student loans go I am not a regular student asking for loans. I am by myself. My parents can’t even co-sign for me, they are going through bankruptcy right now and there credit is in the shitter. So instead of applying for a regular student loan I can apply for a subsidized loan which bumps my loan amount from $6,500 to $10,500. Room and Board at the minimum starts at 2800 per semster, Meal plan is $2500, books are around $1000, and tuition is $4,836 a semester. Would I need to take out a Bank loan to cover the second semster, just curious, because there is no way in hell as a student I am going to be able to afford to go away to college. I already have 2 years under my belt. There is absolutely no way I am going to waist that and stop going. Someone please give me a little advice and tell me whats up. If you have no idea about subsidized loans stay out of it! I asked the same question before and I just got smart ass remarks back, and I honestly don’t have the patience for that right now. Would I want to commute all the way back to kent if I live an 1 1/2 hours away ? What would be cheaper. I wouldn’t want to commute, that would take away the whole college feeling. I want to get the hell away from my home town!

  20. Brady February 22, 2014 at 6:13 am Reply

    I wanted to know if it was possible to negotiate with a private student loan lender to get the rate down? I havn’t signed anything yet, I got a 8.25% prime + 3% rate, and a 3% supplemental fee. I have a credit-worthy co-signer and my credit is decent. I’ve done the FAFSA and grants and recieved the max. I don’t want to add up enquiries to my credit so I wanted to know if I had any negotiating power and if so how do I go about it? Thanks for your help!!

  21. Ryan February 22, 2014 at 6:13 am Reply

    I got a student loan check for about 2500 a year ago. I quit going to school this semester. I know I need to pay the loan back. They are asking me to come up with a grand right now and I just cant. I have house payments, car payments, insurance, lights etc. Along with normal living expenses. The collector said he is going to take it to court and file it with the legal department. I told him I was willing to make weekly payments but that was all i could Guarantee but he said that wasn’t Good enough. What can they do? I dont want to go to jail? My credit is already shot so thats not so much of a concern for me sadly. Thanks for your help.

  22. Rusty February 27, 2014 at 8:15 pm Reply

    I want to start building credit without a cosigner. I have had a Bank of America checking/savings (debit) account. I know there are many student cards out there but I would really prefer to have one with no cosigner because my parents credit history hasn’t been so good recently. I am only 18 by the way. I would only be using this credit card for very small purchases, about $20 a month and pay it off as soon as I get the bill, in full. I am not looking for “cash” but just merely to build credit.
    I have held a part-time job (making more than minimum wage) for the past 3 years. I am a student now, away from home, but will resume work during the breaks and the summer. I will eventually work while at college. I have also successfully used my debit card for the past two years (with money in both savings and checking).

  23. Rosy March 11, 2014 at 9:06 am Reply

    Hi everyone, I am a college student in New York and usually get a lot of need-based financial aid. I had a question however: Could I take out an extra $4,000 to pay for braces? The insurance I have doesn’t cover it and my parents will never have enough to pay for them. I have always wanted them and my confidence has always been so low because I hate my teeth.

    My question: Since I’ll already be in debt, could I take an extra 3-4k dollars out in loans to pay for braces?

  24. Scarlett March 11, 2014 at 9:03 pm Reply

    I have an outstanding balance from a school I attended. Unfortunately I do not have the money to pay them, could I apply for a student loan and use the loan to pay them back. I would normally just pay them off as much as I can from month to month, but I am trying to get into a different school by summer and would like my first school to be squared away before anything elese.

  25. Giselle March 14, 2014 at 2:00 pm Reply

  26. Will March 14, 2014 at 3:08 pm Reply

    I have students loans to pay, plus a credit card that is in overdraft, and im in between jobs right now. I was thinking about going to my bank and asking them for $5,000 to live off of until I get stabalized again. I found another full time job that will be able to support me and my bills but it will take a while to get it all started….. is it realistic that my bank would loan me the money?

  27. Bryan March 20, 2014 at 2:08 pm Reply

    I would really like some advice on student loans. I’m trying to take on some of the financial responsibility since my little sister is also going into college.
    Where to look? What is a good deal? What to avoid? If I go to grad school, do I have to pay them after I graduate undergrad or can they be deferred?

  28. Alva March 31, 2014 at 9:57 am Reply

    Ok. I’ve gotten to the point where I’ve decided that I need to develop a credit score. It’ll probably be better to have one by the time I get out of college. I have both a savings and a checking account, and my bank told me that they do “Student Credit Cards”. Ones with minimal balances. Like $200-400, or something like that. Just to start out with.

    After sitting for an hour. I was told that these are for members of the bank who are IN COLLEGE, and have NO credit history. Like me. I was told that I would get everything I needed in the mail in about 5-7 business days. Simple enough.

    No

    I got a call a week later saying I was denyed for the credit card because i have NO credit history. They suggested to open a store card (at the mall or somewhere like that), stay on time wtih those for a couple of months then try later. Unfortunately, I cannot open one of those either becuase in order to do so, I need a credit score. Catch-22.

    Does anyone have any suggestions of what I should do? I’m kinda confused.

    Thanks

  29. Roberto April 20, 2014 at 2:20 am Reply

    I defaulted on student loans about a year ago and they took my 2007 tax refund and when I asked them why they said that I would have had to set up payments before october 2007 for them not to take the refund. As of January 2008 though I have been making payments(they are directly taken from bank account) to DCS which is kind of like the credit collectors for the student loans. In 9 months my credit will be back to normal with their credit rehab program that I am currently in. I have seen this question so many times on other boards and I was just wondering if anyone had a positive answer? Are you in this situation and DID or DID NOT get your check? I recieved that paper in the mail a few months back that said that I was eligible for the rebate and when I do the “Where’s My CHeck?” thing on the IRS page it tells me that I will be getting it deposited on Friday May 9. Please Help?
    I also forgot to say that the “Wheres my check” for my tax rebate said that he would be deposited on a certain day but at the bottom there was a note that said about having back things owed and I didnt get the money BUT that disclaimer was not there when I checked my boyfriends tax rebate. When I check the “WHeres my check” for the stimulus it has a generic message pretty much what it says on the IRS website about oweing back things BUT student loans are not included on that disclaimer. So frustrating and calling the IRS is a waste of time.
    https://sa2.www4.irs.gov/irfof/IRServlet?app=IRACTC

    This is the “Wheres my check?” for the stimulus check. If your “wave” is scheduled to get your money soon it will be on there but it doesnt go very far ahead. Does anyone else that has a deposit scheduled see the “PLEASE NOTE:” paragraph about oweing federal agencies?
    SUN-E : is your direct deposit scheduled when you looked at that website? the paragraph was right above the print button… i have looked on other peoples but no one else has a scheduled deposit. thanks for the help—-believe me im not spending it before i see it, and it will cut my current loan amount in half so that will certainly help!

  30. Joellen May 7, 2014 at 6:27 pm Reply

    I am in school but have 2 months untill i graduate but i cant finish untill i get a loan to pay for the rest. i need a loan of 16000 but i have poor credit and no family to use as a cosigner is there a place where u can get a student loan or anything without needing a cosigner thats credit friendly?

  31. Sharron May 8, 2014 at 10:59 am Reply

    im going to be a freshman in college and only plan on having about 10-12 thousand dollars in loans (parents pay for about half).

    if not how do i build credit after college. or during college without get a job (dont think you can but worth asking)

  32. Eboni May 8, 2014 at 6:05 pm Reply

    I am a college student working part time to support myself. My bank account is almost in the red and I was turned down for a loan by my bank because I had recently over drafted my account. I am in desperate need of some money at this point because I am having to pay to fix some damages that I didn’t cause and can’t afford. Can I get a loan from a bank that I don’t belong to? I can prove that I am somewhat reliable because I have a somewhat steady income from my two jobs one of which I have been at for four and a half years.

  33. Parker May 18, 2014 at 4:29 am Reply

    If I can help it, I want to avoid loans at all costs to begin with. My tuition, room, and board, total, are only $10,000 a year, thankfully.

    In any case, I’m not banking on getting all of my costs covered. I will probably have to get a loan or two, but hopefully no more than $4,000/year.

    When I was in 9th grade my parents opened up a WOW cable account in my name. Last I heard the balance was up to $800.

    Will this have any effect on my ability to get a loan? I will NOT be able to dispute the balance with WOW by the time that I apply. No questions asked.
    I was asking for a yes or no answer. Attorneys aren’t an option right now.

  34. Codi June 3, 2014 at 2:17 am Reply

    I applied as was approved for a Chase select graduate student loan. There was no outstanding balance on my student account prior to the loan. However there is a credit on my account, what happens to that money? Will it be sent back to Chase Bank? I thought the school sends the students the balance of the funds once there is no balance on the student account.

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