I’m really puzzled—I applied for a $20,000 loan with a co-signer who has a credit score over 800, yet I was approved at a staggering 14% interest rate. Could this be because I included my income in the application? Or perhaps because my co-signer is a resident, not a citizen? I’m quite confused. Could someone please help clarify what might be influencing this decision?
Hey miss,that’s great news about your successful loan application with College Ave! However, a 14% interest rate is relatively high compared to their usual range.
Ouch, this is a great reminder as to why we tend to push for folks to exhaust their federal loan options first, including evaluating if Parent PLUS loans are an option, before going for private loans. We know the rates have been going up in general since lenders want to make a profit and inflation has been crazy, but 14% is wild
We don’t have access to their underwriting criteria so nobody can give you an exact answer. We do know that underwriting takes into account your credit score, your income, your cosigner’s credit score, your cosigner’s income, how much you’re borrowing, and the like. $20k is a lot to borrow for one year, so I would highly suggest seeing if there are ways to cut down on the amount you need and earn the money elsewhere.
You should call them and ask