Credit, Loans, Agh

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Credit Doc

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Hi guys,

This question is regarding credit and student loans so any advice from someone who has been in this position would be awesome.

So today I decided to check my credit score on Credit Karma and found that my score was in the 'poor' range, around ~620. I have never had a credit card, besides a co-signed card (with my parents) that I had in college for study abroad materials, which were paid off promptly.

Anyway, I found that I had a $55 medical bill that had been unpaid for the last 6 months (dang it!) and completely lowered my score. From the financially-savvy to a newbie -- what can I do to help me have good credit before applying for loans (I'll be starting dental school in the Fall)? I'm paying off the bill right in the morning tomorrow.

Ideally I'd obviously like to get the best loan rates as possible but I'm scared that my credit will cause roadblocks. Also -- I am currently working at a coffee shop before school starts so I'm not totally raking in the cash ($11 an hour).

Thank you!

Credit Doc

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For government loans, everyone gets the same fixed rates. Direct loans up to $4X,XXX do not require a credit check. For Direct PLUS loans, a credit score is not require but rather a check for averse credit history in which your medical bill may hurt you. Good news is that if you are declined you can appeal or obtain a cosigner.
 
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Granted, I have absolutely zero experience with this, but maybe you could get that late payment removed. A quick google search brought up this:
http://bettercreditblog.org/3-ways-to-get-a-late-payment-removed-from-your-credit-report/

Regardless, after you pay off the charge, start trying to build some of your own credit. Try to sign up for a Discover It Student card. They are often pretty generous with credit limits and the like. Also, they give you your credit score for free every month and have an awesome rewards program.

As sjv said, you'll get the same fixed rate for your student loans as everyone else. There really isn't an "application process" other than the FAFSA, which is the same for undergrad. I'd try to get that late charge taken care of if you need to take out Direct PLUS loans, though.

And hey, good for you for checking! You always have to start somewhere. :)
 
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Is it in collections already? If it is, look up a "Pay For Delete" letter. Collection companies don't always agree to it, but theres a good chance. You pay it and the negative mark is completely off your report. It would take a month or two to get rid of it so start ASAP.

And sign up for a credit card when this is done, you should have had one already in college. I have over 20 :laugh:
 
And sign up for a credit card when this is done, you should have had one already in college. I have over 20 :laugh:


OVER 20!?!?! Mercy!!! How old are you?

I have 3 cards, and have a credit history of ~5 years.
 
Definitely get a credit card. If you're responsible, get multiple cards. A major part of your credit score is how many accounts you have, how much spending power you have, and % utilization of your credit lines. If you know you can responsibly manage a few credit cards then do some research into which ones are best for you and it will greatly impact your score. That way, minor blips like a missed medical bill won't be weighted so heavily.
 
OVER 20!?!?! Mercy!!! How old are you?

I have 3 cards, and have a credit history of ~5 years.

24 and got my first one at 18. 75k in credit :laugh: . I take advantage of a lot of offers. Just this summer I went to orlando and had free airfare for 2 of my friends. I would have had free airfare too but my points would be better used for a trip to Hawaii or something
 
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I have never applied for a credit card... I basically pay everything with cash or on a debit card. I'm not rich either. I have paid out most of my loans, never making the minimum payments either. In terms of credit, will that be an issue?
 
I have never applied for a credit card... I basically pay everything with cash or on a debit card. I'm not rich either. I have paid out most of my loans, never making the minimum payments either. In terms of credit, will that be an issue?

Nope, you're fine for Direct/PLUS loans. However, I do recommend applying for a credit card(s), your score will increase long term.
 
24 and got my first one at 18. 75k in credit :laugh: . I take advantage of a lot of offers. Just this summer I went to orlando and had free airfare for 2 of my friends. I would have had free airfare too but my points would be better used for a trip to Hawaii or something

Who the hell gave you 75K in credit at 18??
 
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