imperfect credit

[smc927]

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I am still a year or two from medical school but I am trying to figure out how I'll finance it. I have imperfect credit - a credit card for about $800 and a debt of about $4,000 with a school (both from 1997) went to collections. I paid the full $4,000 and half of the $800 (the other half was discharged) in 2000. Since then I have not had any negative marks on my credit but those two items are still on my record.<br>
Having said all that, I'm wondering what my chances are of getting private financing for medical school. I am married with a daughter so it is likely I'll end up needing more than just the federal loan options. <br>
Any insight?

 

[mpp]

You will likely need a cosigner for private loans or search around for a lender that isn't as stringent.

 

[smc927]

For anyone who cares I have found a partial answer to my own question.

First, I analyzed how much Stafford Loan debt I'll have when I finish undergrad. I subtracted that from the total amount I can borrow, then divided what was left to see what I could borrow each year for four years.

Here in PA we have a lot of med schools but most are still expensive. So even if I get in state I'll be paying a lot for tuition and living (half the schools are in Philly). I've figured out that I won't have to borrow any private funds until my 3rd year at the earliest.

I signed up with http://www.mycreditinform.com from EquiFax credit agency. For a small fee I'm able to watch my credit report. It gives me a great analysis including my current credit rating, what is good about my credit history and what is bad, and the best steps to take to improve it. I found that although I had two ugly marks on my credit report they will both drop off before I need private funds (they cannot stay on my record more than 7 years after reported delinquent).

I recommend that site to anyone who wants to get a clear picture of their credit - especially what to do to improve it.

 

[LoanGrl]

You are wise to begin the process of "polishing up" your credit ahead of time, rather than waiting until it's too late. Too many wait until it's too late, and their credit prohibits them from getting private loans. What a mess!
I hope others reading this will check into their credit! 🙂
Good luck to you!

 

[smfernando]

Agreed. It's definitely a great idea to start by obtaining a credit report, and trying to fix any discrepancies on it early. Good luck.