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# Credit Scores and Business School Loan Qualification

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16 Mar 2007, 21:09
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Just curious if any credit gurus out there know what is the minimum credit score necessary to qualify for a Stafford loan, CitiAssist business school loan and/or home mortgage as full time MBA students? I have been outside of the US for quite some time now so my credit is reported as borderline "fair-good." No collection accounts, key derogatories, charge offs, bankruptsies, tax leans etc. Just basically an inactive account other than consistent repayments on undergrad loans.

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17 Mar 2007, 18:29
SVP
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17 Mar 2007, 20:15
Ugh, does anyone remember how a long time ago I promised to post a big long personal finance tutorial? Well, I forgot, but GMATT's post made me remember.

The super-short skinny to all of you thinking about your credit reports:

No no no! Go to www.annualcreditreport.com and nowhere else. This site was created after the FACT Act was passed, which required the 3 bureaus to allow access to one report from each bureau per year per person. The reports at this site are completely free and with no freaky strings attached. There are many other sites out there that range from being a bad deal to a total scam. At annualcreditreport.com, you get all three reports for free. No, you don't get the score unless you pay for it (around $8 each), but you honestly don't need the score. The rules I mentioned above still apply - if you have a collection, pay it. If you were late, start paying on time. If you have no history, open a beginner account. Your score shouldn't determine the actions you take. BTW - pull all 3 reports. You might have something nasty on one that isn't on the other two. If you're just doing an annual check to make sure everything is reporting correctly, then pull one every few months, so you can get a regular status check. If you have something big coming up, like buying a house or going to grad school, then pull all three now so you have time to address any issues. Oh, and if you want to find out more, my favorite credit resource is "Understanding Your Credit Score" at http://www.myfico.com/Downloads/Brochures.aspx#uycs. SVP Joined: 31 Jul 2006 Posts: 2304 Schools: Darden Followers: 43 Kudos [?]: 475 [0], given: 0 ### Show Tags 18 Mar 2007, 10:40 It hasn't been mentioned, but the Federal Stafford loans ($18,500 per year) are not credit dependent. As long as you don't have a prior student loan default pending (I believe it is OK if it has been paid), then you qualify for the Stafford loan.
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18 Mar 2007, 11:20
pelihu wrote:
It hasn't been mentioned, but the Federal Stafford loans ($18,500 per year) are not credit dependent. As long as you don't have a prior student loan default pending (I believe it is OK if it has been paid), then you qualify for the Stafford loan. Good point. Neither are Perkins loans, but Grad PLUS and the various private loans are. Intern Joined: 02 Sep 2006 Posts: 4 Followers: 0 Kudos [?]: 0 [0], given: 0 ### Show Tags 18 Mar 2007, 18:04 While not on topic, I figured I might as well ask while there seems to be a credit guru here. What credit score is generally required to get the 0-.9% etc financing offered on car commercials? While I am not really in the market for a car now, I have always wondered what they are talking about when the commercials boast their tiny print subject to special terms / A+ credit tier required. SVP Joined: 01 Nov 2006 Posts: 1855 Schools: The Duke MBA, Class of 2009 Followers: 16 Kudos [?]: 203 [0], given: 2 ### Show Tags 18 Mar 2007, 18:41 Well, who knows what GMAC & Co are looking for. But for us, the top borrowers are above 740, with the next group above 700. For those fancy offers you see on TV, it's probably somewhere in there. Senior Manager Joined: 03 Jul 2006 Posts: 480 Followers: 1 Kudos [?]: 16 [0], given: 0 ### Show Tags 19 Mar 2007, 06:05 I've already applied for FAFSA, but should I go ahead and apply for GradPLUS loans now as well? I wish there was a timeline available on when we should handle all this crap during the admissions process. Current Student Joined: 29 Jan 2005 Posts: 5238 Followers: 25 Kudos [?]: 377 [0], given: 0 ### Show Tags 19 Mar 2007, 07:20 eazyb81 wrote: I've already applied for FAFSA, but should I go ahead and apply for GradPLUS loans now as well? I wish there was a timeline available on when we should handle all this crap during the admissions process. According to the admitted student homepage, the sooner we apply for all this the better. I got FAFSA in as well (only took a few minutes). As for GRADPlus and Stafford Plus, I need to see how much of a merit/need based scholarship my school is offering. Current Student Joined: 04 Dec 2006 Posts: 440 Followers: 1 Kudos [?]: 7 [0], given: 0 ### Show Tags 19 Mar 2007, 07:20 eazyb81 wrote: I've already applied for FAFSA, but should I go ahead and apply for GradPLUS loans now as well? I wish there was a timeline available on when we should handle all this crap during the admissions process. What is a GradPLUS loan? I thought the PLUS loans were loans parents took to finance for their children? Current Student Joined: 29 Jan 2005 Posts: 5238 Followers: 25 Kudos [?]: 377 [0], given: 0 ### Show Tags 19 Mar 2007, 07:24 squali83 wrote: eazyb81 wrote: I've already applied for FAFSA, but should I go ahead and apply for GradPLUS loans now as well? I wish there was a timeline available on when we should handle all this crap during the admissions process. What is a GradPLUS loan? I thought the PLUS loans were loans parents took to finance for their children? http://www.edamerica.net/money/loanoptions/gradplus.htm Current Student Joined: 04 Dec 2006 Posts: 440 Followers: 1 Kudos [?]: 7 [0], given: 0 ### Show Tags 19 Mar 2007, 07:27 GMATT73 wrote: squali83 wrote: eazyb81 wrote: I've already applied for FAFSA, but should I go ahead and apply for GradPLUS loans now as well? I wish there was a timeline available on when we should handle all this crap during the admissions process. What is a GradPLUS loan? I thought the PLUS loans were loans parents took to finance for their children? http://www.edamerica.net/money/loanoptions/gradplus.htm Thanks, I was totally unaware that we could borrow through this medium prior to now. This is a great bit of info. SVP Joined: 01 Nov 2006 Posts: 1855 Schools: The Duke MBA, Class of 2009 Followers: 16 Kudos [?]: 203 [0], given: 2 ### Show Tags 19 Mar 2007, 08:00 Senior Manager Joined: 15 Jul 2006 Posts: 381 Followers: 1 Kudos [?]: 1 [0], given: 0 ### Show Tags 19 Mar 2007, 08:42 Since I am not a moderator on this forum, can someone make this a sticky? It is a ton of useful info (thanks aaudetat!!) CEO Joined: 15 Aug 2003 Posts: 3460 Followers: 67 Kudos [?]: 861 [0], given: 781 ### Show Tags 19 Mar 2007, 08:45 aaudetat is too kind. I made this a sticky. Current Student Joined: 29 Jan 2005 Posts: 5238 Followers: 25 Kudos [?]: 377 [0], given: 0 ### Show Tags 19 Mar 2007, 08:51 aaudetat wrote: http://www.gmatclub.com/phpbb/viewtopic.php?t=41568 Guys, check this out. OK Aaudetat, let's assume the average Jane Doe pulls up her credit record and receives a 650 (fair), where would she be standing in the GradPlus loan game assuming she has a clean sheet, average income of say$60K for the past 5 years, and will report $0 income for the next two. Distribute? Partial distribute? No distribute?? (Assuming Jane has maxed out on the$18.5 annual Stafford loans).
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19 Mar 2007, 08:56
GMATT73 wrote:
aaudetat wrote:
http://www.gmatclub.com/phpbb/viewtopic.php?t=41568

Guys, check this out.

OK Aaudetat, let's assume the average Jane Doe pulls up her credit record and receives a 650 (fair), where would she be standing in the GradPlus loan game assuming she has a clean sheet, average income of say $60K for the past 5 years, and will report$0 income for the next two.

Distribute? Partial distribute? No distribute?? (Assuming Jane has maxed out on the \$18.5 annual Stafford loans).

Say what? Sorry, I'm not following. (You see, I don't listen. I only lecture.)
19 Mar 2007, 08:56

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