Credit Card Debt?

[Doctortobee]

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Hi All!

How much credit card debt is too much when it comes to applying for loans? THis is assuming it's the ONLY debt I have....

I just printed my credit report. How long does it take for payments to be shown on the report? I paid off my credit card 2 weeks ago, but my credit report still shows a balance...eventhough the credit card company shows that I have paid it...

 

[mpp]

I guess it depends on the kind of loan and lender. For Stafford loans, your credit history is irrelevant.

The credit report can lag considerably behind your "real situation" as sometimes they are only updated quarterly. If you feel that there is an error, you should take it up with the credit reporting agency.

 

[edfig99]

some loan programs don't look at your credit card debt, others will frown on debt, others will frown on debt and available credit, calling that "debt potential"...so it's to your advantage to have very few cards with a very very low balance...

One thing to keep in mind with credit card debt is that you will be a student, so you may not have an income. Financial aid officers ask you about your credit card debt, but they will not provide you with extra financial aid to pay off your credit card debt, which means you may be living month to month, likely paying a little bit more than the minimum and accumulating finance charges....one can only eat but so much ramen noodles and mac n cheese.

the FAO at my med school encouraged us to destroy our credit cards....or at least, make it difficult to use them, i.e. freezing them in a block of ice in the freezer to defrost in case of emergency.

 

[bonjuju]

Does having an outstanding balance mean that you may be denied a private loan?

 

[nickdv]

Bonjuju, I'm still in the process of doing my loan apps. However, when applying for a private loan online my credit check came back ok even though I have some credit card debt. Though I have yet to get any numbers back from my school yet, I think its probably OK to have a balance as long as you haven't been late in making payments. Unless your debt is extreme.

 

[bonjuju]

Thank nickdv.
Just got the preapproval. (insert big sigh of relief) Good luck with your stuff!