If you are a student and you need a loan to help pay for tuition, transportation, books, or whatever, but your credit isn’t as good as it should be, you can relax. It’s not impossible for a student with bad credit to get a student loan. Bad credit student loans are approved everyday for students that have less than desirable credit. The trick is to learn the top five tips to getting student loans with bad credit.
Build A Good Credit History
It is a known fact that no credit is bad credit, if this is the case you can take out a small starter loan (usually around $100.00 to $200.00) and pay it back like clock work, always on time with the payments and maybe a little extra just to speed it along.
Student credit cards can be used to build a students credit history. If a student credit card is used to build credit history the student should keep in mind that what they spend must be paid back with interest. There are many people who get into financial trouble by using credit cards.
Students credit scores are most often one of the first determining factors when taking out a student loan with bad credit. Before applying for a student loan with a bad credit history the student should do some research and find out exactly what the credit score is and exactly what is causing the students poor credit score.
There are times when a students credit isn’t as bad as expected, or mistakes have been made that can be fixed with a few phone calls and faxes, and other times students poor credit ratings are caused by undiscovered identity theft.
Whatever the reason for a students poor credit it is hardly ever impossible to get a student loan, even with bad credit a student can get a loan. However, the bad credit can and needs to be repaired. There are many agencies that will aid a student in repairing their poor credit and making it possible for the student with bad credit to not only get student loans, but other loans as well.
Federal Plus Student Loans
This is a loan by the Federal government that can be taken out by the parents of a college student. The Federal Plus loan can be used in addition to a students financial package. Often students who don’t live close to campus need transportation to and from school, and expensive computers and computer software. Graduate students are allowed to apply for the Federal Plus Loan as well. If a student doesn’t pass the credit check to get the loan they can have someone that does have good credit to sign with them as a co-signer.
Federal Subsidized Stafford Loans
This loan is given to the student themselves and approval is based on the economical need of the student. If a subsidized loan is approved the student won’t be charged interest on the loan until they are required to pay back the loan. The Federal government also gives Unsubsidized Stafford Loans that are not granted according to the students economical needs. These loans are available to all eligible students and the interest begins as soon as the student receives the money.
Student Loans For Bad Credit – Don’t Let The Past Stop Your Future
The government and loan institutions of today recognize that student loans are often the only way for students with bad credit to start or continue their schooling. They also realize that by investing in a students future they are investing in our nations future as well. If you are a student with bad credit who needs a student loan you don’t have to let the facts of your poor credit history effect your decision to continue your education.