0023 - Debt Related Queston: Bankruptcy Question # 0023

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QUESTION #0023:

I am currently a student and have been declined for a line of credit based upon my summer employment earnings. How can I pay for my schooling without going into bankruptcy?



ANSWER:

Credit is issued at the discretion of the lender, and there is no concrete rule on what information they must use to approve or decline an application. In general, lenders look at your credit rating, income, and stability. The lenders are looking at the risk factor for your ability to remit payment in the future. If your employment ends in August, where does the money to remit payment come from after that? Lenders seem to prefer 12-months of consecutive employment, which indicates to them that your income is likely to continue. Stability is also based on length at residence. If you move every year, this diminishes your stability rating. It is important to ask yourself how you were planning to repay the creditor, and what you wanted the credit for. Generally a Student Loan can be obtained to cover tuition and other school expenses. Living expenses can be paid from employment income. For more information on Credit Reports, go to www.equifax.ca or www.tuc.ca.