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Question
Credit Criteria for PLUS loan?
My son (17/no credit history)is accepted to Berklee COM with approx. 26k in scholarship, grant and perk/staff loans. While this will cover practically all his yearly tuition for 4 consecutive years, we still need around 15k for required freshman campus living(1 year). I plan on applying for the PLUS loan for my son but I fear my credit score may not be good enough. As of Feb08 I am at 611(equifax) The negatives are because of my high balances on all my cards, a collection item of $130 which is paid but shows as 120days late and a chap.11 BKRPTCY from 1998 which won't be off my report until Nov of 2008. Some good things on my report are that I am current and have not been late/delinquent on any of my cards or loans ever (oldest card opened over 5 years ago) and I have just paid off my car last month and I paid off a 5k loan (on time as agreed) last Nov. What can I do to improve chances before July when we apply for the PLUS? How will PLUS view someone like me?My FAFSA EFC is 0, BTW.
5 months ago - 3 answers
Best Answer
Chosen by Asker
To improve chances - start writing letters about everything late on your credit report to the three big credit bureaus now! Even if only one or two don't respond to your inquiry in time, that is one or two off your record. Keep LOW (yes, get them paid down) balances ($100 -$200) on a few cards and make REGULAR payments via on-line/ACH/scheduled with the credit card company. They really like this... PLUS will like you to be honest. It is set up to help such folks, but improving your score NOW will only help. Have him apply and you co-sign. Have him get a $500-$1000 card if he can too, just to get something reported for himself when he hits 18.
by mtj83099
4 months ago
Asker's Rating: 
Other Answers
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