Thankfully for most students and parents, student loans, bad credit problems or little credit now have almost nothing to do with each other as long as you avoid private student loans that use your credit score as a tool in determining the loan. In the past several issues have prevented students from getting student loans, bad credit being one of the most common. Private lenders can still use your credit score to eliminate you from getting a loan, however federal government loans don't use your credit report, meaning that limiting student loans, bad credit issues, or other financial problem cannot exclude you from qualifying for a loan.
The various types of funds for education that don't require a credit check include Stafford and Perkins federal loans, Pell grants, private grants, school based scholarships, government or private types of grants that are offered outside of the standard loan programs. People that want to apply for student loans, bad credit or no credit in their history, can focus on these types of applications and programs that prevent the need for any credit checks.
Usually for most students seeking student loans, bad credit is not as big of a problem as no credit history at all. For these young adults their parent's, spouses or even friends with good credit can ask as co-signers on the loan, using that credit score for private lenders that require this information. The better the credit score the lower the interest rate will typically be on the loan. Avoid lenders that indicate they don't check your credit score, they are likely charging additional fees somewhere that will add up to more than the higher interest rate would in the long run.
The biggest issue for returning mature students is that often the original student loans have been mismanaged and are the biggest issue on their credit score. If you are planning on obtaining a student loan and know that you have a bad or low credit score, the first thing is to work with a financial consultant or professional credit counselor to get your credit score into shape. This usually means apply for and managing some secured credit cards that can show you pay your bills on time. It may also mean consolidating your outstanding student loans, bad credit issues and other loans into one lower, manageable monthly payment and showing a good payment history for six months to a year. While this may mean delaying your return to school, it will actually provide you a greater opportunity to save up for tuition and education costs, plus you will also repair your credit rating and decrease the overal interest you will have to pay on your loan.
Friday, May 29, 2009
Subscribe to:
Post Comments (Atom)
Blog Archive
-
▼
2009
(278)
-
▼
May
(56)
- Schooling You Longing To Know About Student Loans
- Some Considerations About Personal Loans
- Looking at Student Loan Debt Consolidations
- Subsidized and Unsubsidized Stafford Student Loans
- How to Refinance Student Loans: 5 Tips
- Little Known Student Loan Interest Rate Facts
- How To Repay Back Your Student Loans
- You Should Get A Student Loans If You Really Need It
- The Truth About Student Loans
- Myths about Student Loan Refinancing Dispelled
- No Credit Check Student Loans Explained
- How Consolidation of Student Loans Works
- Why Go For Student Loan Consolidation
- Student Loan Consolidation and Solve your Student ...
- How to Find Low Interest Student Loans
- Worried About Student Loans, Bad Credit Causing Pr...
- Personal Finance. Credit Agencies Refused Access T...
- Personal Finance. Student Loans Debts Do Not Go On...
- Student Loans And The Price Of An Education
- Student Loans And The Price Of An Education
- How Student Loans Work
- Student Loans – A Simple Guide
- Consolidate Private Student Loans - 4 Benefits You...
- Lead A Debt Free Student Life, Obtain Debt Consoli...
- Repayment to Begin on Student Loans; NextStudent o...
- Loans For Every Occasion: Home Loans, Payday Loans...
- NextStudent Offers PLUS Loans for Graduate and Pro...
- Plan a Bright Future ahead with International Stud...
- What Happens When You Default on your Student Loans?
- Refinance Your Student Loans
- How To Handle Student Loans Appropriatly
- Student Loans Consolidation Must Known Secrets
- What Are Plus Student Loans?
- How Consolidation of Student Loans Works
- No Credit Check Student Loans Explained
- UK Financials Ltd introduce Student Debt Consolida...
- College Student Loans - An Overall Guide
- Student Loans For Bad Credit Scores
- Financing Your Education: Your Future Is In Your H...
- What You Should Know About Student Loans
- Understanding Federal Student Loans
- Student Loan Consolidation Centers Should Have Com...
- Student Loan Consolidation Centers Should Have Com...
- Student Loan Consolidation: Make your Student Loan...
- Cheap College Loans: for a Stress-free Student Life
- Is Student Loan Consolidation on Private Loans Rea...
- Student Loan Consolidation Can Help
- All About Federal Student Loan Consolidation and I...
- Student Loans Come in a Variety of Types and Payme...
- Student Loans: Cut Monthly Payments on your Studen...
- How To Get A Bad Credit Student Loan or Student Lo...
- Student Loan Consolidation Info For Students
- Cheap College Loans: for an Uninterrupted Education
- Need A Student Loan? Three Kinds Of Student Loan F...
- Can’t Afford College Education? Applying for a Stu...
- Pursue Education With College Loan
-
▼
May
(56)
No comments:
Post a Comment