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Question By
Trucidus

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I've been denied a secure credit card due to debt...
I have no credit cards, and the only debt I have is student loans... However, I applied for a secured credit card and was denied. All of my student loans are in default... What now? I would like to build my credit, I am very good with my finances now, taking care of a family on a single income. I just need an opportunity. Are there any options available to me?

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Can you consolidate your student loans into an income-based plan to get you out of default?  Get with your loan servicer right away, you could end up paying zero per month.  Ask them for an income based consolidation plan.  Best of luck!

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As long as you are in default

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you probably will not be able to secure any credit.

You need to get those loans current and then show a history of paying your debts on time. 

Your debt to income ratio is the total amount of your monthly minimum payments to the amount of income you have.  Lenders want to see that ratio below 20%.  When your in default, all those past due payments are added together. so your ratio will be very high.

Good luck

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Reply by
EddyTX

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I forgot to mention, that when your in default, that means that the total amount of the loan is due because you did not follow the repayment plan.  Contact those lenders and rework your payment plan then stick to it.  Once you get a few payments under your belt see if you can get them to report that you are "current" on your accounts

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By the way...

I was denied solely based on my debt to income ratio.

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Loan Servicer...

How do I determine who my loan servicer is?

Reply by
Trucidus

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Ok, I actually just did some digging and I called them up and sure enough... a $0 payment.  Since this is the only negative thing on my credit report, I'm very thankful for your replies : ).  12 months and I can look to the future.

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