Credit Cards

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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JDHopeful
Posts: 232
Joined: Thu Jan 03, 2008 4:20 pm

Credit Cards

Postby JDHopeful » Tue Dec 21, 2010 12:41 pm

Okay, so I'm trying to get my cards paid off by the time I go to law school.

However, if there is a couple thousand dollars left on the cards by the time I apply for loans, how will this affect me?

To note: I've never missed a payment on anything; I've been out of undergrad for 3 years and have been paying rent, car loans, credit cards, student loans, among other things on a timely and complete basis for the entire time.

Thoughts?

Thanks!

krad
Posts: 1897
Joined: Mon Sep 13, 2010 10:33 am

Re: Credit Cards

Postby krad » Tue Dec 21, 2010 12:42 pm

JDHopeful wrote:Okay, so I'm trying to get my cards paid off by the time I go to law school.

However, if there is a couple thousand dollars left on the cards by the time I apply for loans, how will this affect me?

To note: I've never missed a payment on anything; I've been out of undergrad for 3 years and have been paying rent, car loans, credit cards, student loans, among other things on a timely and complete basis for the entire time.

Thoughts?

Thanks!


Tag. Same boat, 3 yrs out of UG, paying all that jazz, trying to pay down my cc. I am pretty sure I'll get there before next fall, but I'm curious to know peoples' thoughts as well...

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JDHopeful
Posts: 232
Joined: Thu Jan 03, 2008 4:20 pm

Re: Credit Cards

Postby JDHopeful » Tue Dec 21, 2010 12:44 pm

krad wrote:
JDHopeful wrote:Okay, so I'm trying to get my cards paid off by the time I go to law school.

However, if there is a couple thousand dollars left on the cards by the time I apply for loans, how will this affect me?

To note: I've never missed a payment on anything; I've been out of undergrad for 3 years and have been paying rent, car loans, credit cards, student loans, among other things on a timely and complete basis for the entire time.

Thoughts?

Thanks!


Tag. Same boat, 3 yrs out of UG, paying all that jazz, trying to pay down my cc. I am pretty sure I'll get there before next fall, but I'm curious to know peoples' thoughts as well...


Yea, I'm not sure if I'll get the entire thing down. But we'll see...

But yea, definitely curious to hear thoughts...

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NYC_7911
Posts: 238
Joined: Sat Oct 30, 2010 9:03 pm

Re: Credit Cards

Postby NYC_7911 » Tue Dec 21, 2010 12:48 pm

To the best of my knowledge, this shouldn't have any impact on your ability to take out loans (federal, at any rate). Stafford loans are not credit-based. Grad Plus loans, which do require credit review, just require that you don't have "adverse credit," defined as:

- currently 90 days or more delinquent on repayment of any debt;
- has had debt discharged in bankruptcy during the past five years; or
- evidence of a default, foreclosure, tax lien, repossession, wage garnishment, or write-off of a Title IV debt during the past five years.

If you've always made payments on time, etc., having a balance on your cc (especially of a couple thousand dollars) shouldn't mean anything for federal loans. I don't know about private, but again, I'm sure your credit is fine with just a small balance on a cc.

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homestyle28
Posts: 2312
Joined: Thu Jun 04, 2009 12:48 pm

Re: Credit Cards

Postby homestyle28 » Tue Dec 21, 2010 12:48 pm

JDHopeful wrote:
krad wrote:
JDHopeful wrote:Okay, so I'm trying to get my cards paid off by the time I go to law school.

However, if there is a couple thousand dollars left on the cards by the time I apply for loans, how will this affect me?

To note: I've never missed a payment on anything; I've been out of undergrad for 3 years and have been paying rent, car loans, credit cards, student loans, among other things on a timely and complete basis for the entire time.

Thoughts?

Thanks!


Tag. Same boat, 3 yrs out of UG, paying all that jazz, trying to pay down my cc. I am pretty sure I'll get there before next fall, but I'm curious to know peoples' thoughts as well...


Yea, I'm not sure if I'll get the entire thing down. But we'll see...

But yea, definitely curious to hear thoughts...

A few grand balance won't affect things much so long as you've been making payments, most students cover costs with fed loans and these aren't too hard to get with good credit (600+ fico). It might make private loans a bit trickier or require you to get a cosigner for the private loans. This link is helpful: http://www.top-law-schools.com/funding-your-legal-education.html

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vanwinkle
Posts: 9740
Joined: Sun Dec 21, 2008 3:02 am

Re: Credit Cards

Postby vanwinkle » Tue Dec 21, 2010 12:53 pm

NYC_7911 wrote:To the best of my knowledge, this shouldn't have any impact on your ability to take out loans (federal, at any rate). Stafford loans are not credit-based. Grad Plus loans, which do require credit review, just require that you don't have "adverse credit," defined as:

- currently 90 days or more delinquent on repayment of any debt;
- has had debt discharged in bankruptcy during the past five years; or
- evidence of a default, foreclosure, tax lien, repossession, wage garnishment, or write-off of a Title IV debt during the past five years.

If you've always made payments on time, etc., having a balance on your cc (especially of a couple thousand dollars) shouldn't mean anything for federal loans. I don't know about private, but again, I'm sure your credit is fine with just a small balance on a cc.

TITCR. Good repayment history is sufficient for federal grad loans up to the full costs of tuition+living expenses; they don't worry about existing debt or income because you're assumed to get a high-paying job to pay this stuff off when you graduate.

(That's possibly a fault assumption, but it's how the system works.)

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JDHopeful
Posts: 232
Joined: Thu Jan 03, 2008 4:20 pm

Re: Credit Cards

Postby JDHopeful » Tue Dec 21, 2010 2:17 pm

Thanks for the insight.

Def. not looking forward to sorting all this out.

Nonetheless, thanks!




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