If you are just now deciding to go to college you may be discouraged because you have bad credit. Students with bad credit usually have a harder time applying for and qualifying for loans. This is understandable because lenders are in business to make money and want to make sure that the people they lend to have the ability to pay it back. If you fit in the bad credit category don't worry there is likely still a way for you to get a loan.
After being denied for a good loan your next step should be to go to family members and ask for a co-signer. If your mom, dad, brother, grandma, etc has good credit and is willing to co-sign for a loan then you will likely not have any trouble at all securing a loan under good terms.
Getting a co-signer with good credit will help you because the lending institution will look at their credit history and not yours. Obviously if they have a good credit history you will be able to not only get a loan but get it at a low interest rate. Getting a good co-signer is one of the best options for student loans for people with bad credit.
Another option for students with bad credit looking for student loans is to contact banks and other lending institutions and ask if there are other ways that you can finance your education. Many times they will have alternative plans for students with bad credit. The downside is that they will likely charge you a higher interest rate.
This isn't as bad as it sounds however. Since college usually takes four to five years you will have time to rebuild your credit history and when it is time to pay off your loans you can likely refinance them at a lower rate. And since you will have a better job it will be that much easier.
The next option is to apply for a combination loan. Combo loans are essentially so that you can consolidate your debt and pay a lower rate overall. If you have some debt at 12, 18, and 20 percent then once you have consolidated your loans you will likely be paying around 14 percent for the entire thing. This will help bring down the overall payment. And again if you are able to fix your credit scores then over time you can get lower and lower rates.
If you haven't filled out a Stafford or Perkins loan application then you should do that next. Perkins and Stafford loans are specifically in place to help people that need financial aid go to school. If your college is an accredited institution you will be able to apply for and likely qualify for one of these loans. Another benefit is that they usually have fairly low interest rates.
So don't be shy and register for every possible loan and grant. You will get denied on several but you only need one or two to go to college. In fact if you really want to go to college and yet you have bad credit you should search online for scholarships and grants. There are literally thousands of options available to you and many that go unused each year. If you don't mind filling out some paperwork you may be able to go to school at no charge.
After being denied for a good loan your next step should be to go to family members and ask for a co-signer. If your mom, dad, brother, grandma, etc has good credit and is willing to co-sign for a loan then you will likely not have any trouble at all securing a loan under good terms.
Getting a co-signer with good credit will help you because the lending institution will look at their credit history and not yours. Obviously if they have a good credit history you will be able to not only get a loan but get it at a low interest rate. Getting a good co-signer is one of the best options for student loans for people with bad credit.
Another option for students with bad credit looking for student loans is to contact banks and other lending institutions and ask if there are other ways that you can finance your education. Many times they will have alternative plans for students with bad credit. The downside is that they will likely charge you a higher interest rate.
This isn't as bad as it sounds however. Since college usually takes four to five years you will have time to rebuild your credit history and when it is time to pay off your loans you can likely refinance them at a lower rate. And since you will have a better job it will be that much easier.
The next option is to apply for a combination loan. Combo loans are essentially so that you can consolidate your debt and pay a lower rate overall. If you have some debt at 12, 18, and 20 percent then once you have consolidated your loans you will likely be paying around 14 percent for the entire thing. This will help bring down the overall payment. And again if you are able to fix your credit scores then over time you can get lower and lower rates.
If you haven't filled out a Stafford or Perkins loan application then you should do that next. Perkins and Stafford loans are specifically in place to help people that need financial aid go to school. If your college is an accredited institution you will be able to apply for and likely qualify for one of these loans. Another benefit is that they usually have fairly low interest rates.
So don't be shy and register for every possible loan and grant. You will get denied on several but you only need one or two to go to college. In fact if you really want to go to college and yet you have bad credit you should search online for scholarships and grants. There are literally thousands of options available to you and many that go unused each year. If you don't mind filling out some paperwork you may be able to go to school at no charge.
About the Author:
Bob gives advice to tons of students about bad credit private student loans through government programs. He also shows students how to secure and find student loans bad credit if they can't qualify for other types of educational funding.
0 comments
Post a Comment