Fed Financial

Question for college students - Chase or Citibank, which is easier?

Do you think I can get a $5,000 loan with either company with a 537 FICO score but with a cosigner who has a great FICO score? Do they require actual documents of income verification?

Public Comments

1. There are two sources for student loans -- the federal government and private lenders. In order to obtain most federal student loans, you will first need to file the Free Application for Federal Student Aid (FAFSA). In most<!--instances the FAFSA is required for all federal financial aid including federal student loans. Deferment options are available while you are still attending school at least half-time. There are four main federal loan programs. http://best-loans.awardspace.com/student-loans.htm Federal loan consolidation is for students who are in repayment status or parents who wish to extend the repayment period on their current PLUS and obtain a fixed interest rate for the life of the loan-->you can combine all of your eligible federal student loans into one loan with a Federal Consolidation Loan. Consolidating also locks the interest rate you pay on your loan.
2. No verification required, just signatures. If your score is low, and they decide to finance you, they'll do it at a higher APR which means higher fees and it'll take longer to pay it off. If you decide to activate the card, it's still not a good idea to use it often or put large amounts on it. You should use the card only when you have the money in the bank to pay for the items you charge, then pay the balance in full each time you have one. Do that until your score is high enough to be considered good by creditors, then stop using that card. Keep it open for a while, but you need to let the co-signer off the hook. Co-signing means that they are responsible if you don't pay, which is bad for them and their credit. Cancel the co-signer card once you are approved for a card on your own. Be patient. This will take a year maybe two if you do it correctly. Longer if you don't exercise much will power. But you're on the right track.
3. Citibank is probably going to be easier for you to get the loan quickly. Your fico score is way lower than the minimum and if you're not working full time, you probably won't qualify by yourself. If your co-signer has a "great" FICO score, you're more likely to get a better rate. Banks prefer you have a co-signer because you'll be less likely to default on your student loan. And yes, they'll ask you for actual docs. You will be asked for enrollment verification, income verification for your cosigner (paystubs, tax returns, w-2's). Since loans are risky, lenders will need you to supply as much documentation as possible to prove you are who you say you are, and your cosigner is actually who they are. Good luck and watch the interest rate and origination fees. You might be better off getting a p2p loan from a place like fynanz.com or some other place where you can borrow the money from a person instead of a bank and letting them compete to give you lower rates. prosper.com is the other site you can look into. PS- don't defer your payments if you get the loan. You're better off paying the interest while you can.