In Bad Credit Student Loans are a Reality, we introduced you to the reality of obtaining a student loan if you have bad credit. What you learned is that even with having bad credit, there are still plenty of student loan options for you out there. In this article, we are going to go over some of the steps in more detail.
Most people who have bad credit feel they are out of luck when it comes to getting a student loan. But that is just not true. There are options out there, and nearly everyone can find a loan to meet their situation. But there are some steps you can take to help you navigate your way through this process.
Here are the steps you will want to keep in mind in order to obtain a student loan with bad credit:
Without knowing what is on your credit report and what your credit score is, you are kind of in the dark. Get the info you need by requesting your credit report. Once you get it, review it closely, and be sure to file a dispute if anything is incorrect. Credit scores range from 300-850. The higher the score, the better. Those with a score lower than around 600 are seen as bigger risks to lenders and will often pay higher interest rates.
When applying for a loan, especially when you have bad credit, it is important to get multiple loan quotes. Gather information from several sources who lend to those with poor credit.
Once you have the information from all the lending institutions, compare each one. Look at the interest rates, loan process, their reputation, etc. Once you have done your homework and compared everything, decide which will be the best option for you.
Work to improve credit
It is a good idea to start making plans to try and improve your credit score. You would be surprised at some of the small things you can do that will end up having a big impact.
If you are successful in improving your credit score, be sure to try and negotiate a better interest rate the next semester or year. You may even need to apply with another lender, but if you qualify for a lower interest rate, it will be well worth the extra work.
Following these steps, you will be able to find a loan that meets your needs and puts you on the college path you desire. Be sure to watch for our next newsletter, which will look at a variety of ways you can improve your credit score.