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Need loans for law school- Advice on building credit


Lilolas
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Hello credit experts!

Thanks to the information provided here, I am very happy to report that I have cleared all but 3 baddies off my CR. I had to defer law school this year due to my foul cr (which blessedly, lit a fire under me to get my credit cleaned up). Now, I need to actually BUILD my good credit history...I have about 6 or 7 months until I'll need to apply for education loans again. I've done some research on the boards and have come up with about 3 practical ways for me to build my credit history fast (lol- if that's possible).

1. get an unsecured bank card (orchard of BOA)

2. get a store card

3. do the borrow against a CD thing

Does anyone have any tried and true methods of building history w/o a lot of time?

THANKS!

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Hello credit experts!

Thanks to the information provided here, I am very happy to report that I have cleared all but 3 baddies off my CR. I had to defer law school this year due to my foul cr (which blessedly, lit a fire under me to get my credit cleaned up). Now, I need to actually BUILD my good credit history...I have about 6 or 7 months until I'll need to apply for education loans again. I've done some research on the boards and have come up with about 3 practical ways for me to build my credit history fast (lol- if that's possible).

1. get an unsecured bank card (orchard of BOA)

2. get a store card

3. do the borrow against a CD thing

Does anyone have any tried and true methods of building history w/o a lot of time?

THANKS!

Although piggybacking will soon be a thing of the past I would have someone add you as an au to increase your scores quickly. Then you can apply for an unsecured card and get a higher limit with better interest rates because of the au. But you better do it fast. Au's re only going to be around for a little longer.

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Another thing you can do is get an unsecured personal loan from a bank. Try and see if the people you have account with now will do it. See if they will accept your deposited money as collateral. Or, cosigin onto a loan with family, If you are a joint account holder, not just an AU, you still get points. Also make sure and fill out the FASFA. I dunno if you've already looked into it but subsidized stafford loans carry like 3% interest and are made regardless of credit.

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Thanks everyone for your advice!!

It's basically all on me to finance my education and take charge of my credit; i.e. my family's credit is pretty dire :) However, I did get a payday loan a while back from my credit union...I noticed they reported to EQ only. Is this the type of loan that has a positive effect on my credit score?

I know I should have some type of installment loan...but in my position getting a large loan is not something I feel comfortable doing (since I'll be a broke student again in the near future :roll:)...

Hey Oompa :) I definitely will take your advice and make sure to fill out the FAFSA...I know last year I filled it out and was able to get the Stafford loan (?) but that only covers a very small fraction of the cost (especially in DC)!!

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Ooh...I just thought of another question...

Okay so here's my plan of attack for the next 6 months:

- Get secured card

- Get a store card

- Get Crown jewelers loan/card

- Get unsecured short-term loan through CU

W/ all these new credit lines...could this actually deter the education loan lenders from lending to me? I'll need to take out about 60,000 (yikes) for school? I'm hoping to be able to secure financing through the federal GradPlus loan route (which is credit based), not a private lender...

Muchas Gracias!

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New accounts and too much available credit can be bad for you. However, after six months the accounts aren't considered new anymore and your available credit should not be an issue. Good payment history, low utilization and responsible use will be the primary factors in your score. Your score may actually go DOWN after you open all these new accounts, but they will rebound quickly with responsible use.

-r

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New accounts and too much available credit can be bad for you. However, after six months the accounts aren't considered new anymore and your available credit should not be an issue. Good payment history, low utilization and responsible use will be the primary factors in your score. Your score may actually go DOWN after you open all these new accounts, but they will rebound quickly with responsible use.

-r

Got it! Thanks so much Razr!!

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The GradPlus loan only requires no adverse credit, you would not need to build to get it.

The Extra loan is credit based, usually requiring a 720, though oftentimes a co-signer would only need a 650 for some odd reason.

Ok, this was going to be my next question. I should be good to go w/ GradPlus then. I don't want to pile on too much new credit if that's not what they take into account...just enough to show that I'm responsible with $$.

Another quick question for everyone...does it matter what my credit limits are? For example, I'm going to apply for a BOA secured card...whatever I put into a savings account will be my cl...I was thinking of...$500 (?)

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Higher CLs are better for your score.

-r

Okay, thank you! One more ? 88-) I've read that it looks really bad to be taking out new credit lines w/in a short time span...according to me plan I'll be taking out about 4 new lines of credit w/in a 2month time span...(CJ and BOA cards in Oct.; store card and CU/CD loan in Nov.) am I being too aggressive? Would it be wiser to get all these cl w/in the same month?

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Okay, thank you! One more ? 88-) I've read that it looks really bad to be taking out new credit lines w/in a short time span...according to me plan I'll be taking out about 4 new lines of credit w/in a 2month time span...(CJ and BOA cards in Oct.; store card and CU/CD loan in Nov.) am I being too aggressive? Would it be wiser to get all these cl w/in the same month?

I would start out with CJ pretty quickly. They report pretty much immediately after you make your first payment...And you basically can't really be denied for the line of credit - everyone gets it. :)

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I would start out with CJ pretty quickly. They report pretty much immediately after you make your first payment...And you basically can't really be denied for the line of credit - everyone gets it. :)

Hehe!! I actually did this, this morningxdancex THANK YOU

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