GradPlus- credit issues?

[emidesu]

I read a flyer from Wachovia about their GradPlus that said they do not grant the loans based on credit score so you do not need a co-signer. Yet when I looked on the web for other lenders offering the same thing, the sites said you can't have adverse credit. Anyone know what the real deal is?

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[It'sElectric]

Basically it works like this. Your credit score is not taken into account. However, adverse credit (late payments, credit card trouble, or basically any sort of NEGATIVE credit) will hurt you and potentially prevent you from receiving the Grad Plus loan. That's at least how I understand it, which does make sense.

Alternative Private Loans are different, since they have to take your credit score into account in order to determine the interest rate.

 

[Doctor Bagel]

If you look at the GradPlus qualifications, they state things like you can't have declared bankruptcy with the past five years or had a tax lien. Basically, there are certain major credit issues that could cause your application to be denied unless you have a co-signer. You're not going to be denied just because you routinely pay bills 35 days late or have no credit.