Does taking out private loans without a co-signer affect your credit score?

Something came up and long story short I must take out a $6,000 private loan without a co-signer. I understand missing payments would negatively affect credit score. But would taking out these loans by itself affect my credit score at all?

Depending on your income, you may not be able to get a private loan without a co-signer. The more debt you have against your income (if you’re a full time student your income is probably very low), it could negatively impact credit score.

Probably.

thanks and if so, about how much?

There are really good websites like creditkarma that will have better information about this topic.

Any extension of credit affects your credit score, but it can be positively or negatively. Usually at first it is negatively since you have the obligation but haven’t made any payments. Once you start making payments, the score will go back up. At the beginning, it changes your debt to income ratio because you have more debt but not more income.

When you take out a loan you affect your credit score. No way to know how much. The Credit Services keep that kind of info under wraps.

Oh, it doesn’t matter if there is a co-signer or not. The loan is the responsibility of both the signer and co-signer, so it will affect both credit scores.

Are you an adult with an income?
Dependent students typically can’t take a loan without a cosigner but if their parents don’t qualify for a PLUS loan, they automatically qualify for $4,000.

i am a freshman with no income but in 2019 i will have an internship that pays me 17000, which I could use to pay back the loan, I don’t want to destroy my credit score yet I also want to pay for college

Only not repaying a loan destroys your credit rating. However, what people are saying is that it is unlikely you will qualify for a private loan with no source of income and no co-signer. Banks have requirements and one is the loan to income ratio.

Work with the FA office at your school to see how you can borrow what you need.

How can you get a loan if you have no income?

thank you, and what if I apply for a loan with no co-signer and am rejected, which is the likely outcome as you say? does that affect credit score?

@brantly i was going to apply at Sally Mae

Don’t be counting on chickens with internships, who knows what will happen in 2019.

Almost any time you apply for credit it takes 5 or so points off your credit score. Usually it goes back up the following month. The reason is that lenders don’t want to see someone stocking up on credit, taking out a lot of credit cards all at once.

You seem to be very concerned about your credit score when you should be concerned about the loan itself. What are the terms, how much are you borrowing, how will you pay it back, when does repayment start? Student loans from the government have delayed repayment, but often private loans do not and you have to start repaying them immediately. That’s why you need to have income when you take the loan, not ‘next year.’

Talk to your FA office. Make sure you’ve received all the government loans you are eligible for.

I just can’t see you getting a loan now with no co signer. Does Sallie Mae even have loans with no cosigner?

Usually you can’t get loans (except the Direct Loan) in your name unless you have a JOB or significant collatera. It doesn’t sound like you have either.

Did you already take the $5500 Direct Loan for freshman year?

Why do you have a $6000 shortfall…and where did you think this money was going to come from?

If i can’t get a private loan without a cosigner, how am i supposed to come up with the money? The reason I have a 6,000 shortfall is that I do not qualify for federal aid because my parents filed their taxes incorrectly and I have no way of speaking to one of my parents to correct it for the verification process which I was selected for.

Go and talk to FA. They may be able to approve you for the unsubsidized loans depending on the reason why you can’t talk to your parents.

@kawledge123
Have you been able to talk with FA?
Can you share why you can’t talk with your parents?
Can’t they correct the FAFSA forms?