Nov

Can I get Student Loan with low credit score?

Author: Sally Croft

Worried about your credit history? Afraid of rejection of your loan application due to bad credit? You should try Federal as well as Private source of finance for a Student Loan of your choice.

Credit Score:

Credit score is indeed an important determinant for loan approval. It is the case only when it is a non need based loan. No credit check is done in case of need based loans. Most of federal loans are need based loans, where no check is required. Low credit score does not stop you from availing a loan. It is just that you are charged premium for the risk factor involved in lending money to you. It is advisable to exhaust every possible federal loan before venturing into alternative source of finance.

Factors involved in getting a Student Loan with Bad Credit

Where your current credit report does not enable you to get a loan at favorable terms, it is time for you to take the help of your family members. Request one of them who have a favorable credit score to be a cosigner. This will enable you to get a loan at favorable rate and terms.
Try contacting as many bankers as possible explaining your credit situation and assuring your best. Many banks lend money to bad credit borrowers subject to certain precautionary measures and rates coupled with risk premium.
Think of applying for a combination loan, wherein you will end up consolidating your previous student loan and apply for a new loan for further fund requirement. It is necessary to apply along with a cosigner for the loan to get approved in such cases.
Make a FAFSA application for Federal Perkins loan. Both government as well as school funds is used in granting such loans. Being a need based loan, it does not require any credit check.

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Student loan low credit score says:

November 24, 2008 at 8:22 am

This is very helpful! Thank you.

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April 8, 2009 at 11:02 pm

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Sally Croft says:

April 9, 2009 at 4:50 am

Thank you friends for stopping by and leaving your valuable comments.
*Cheers*

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June 8, 2009 at 11:55 pm

@ Loan Modification and @ How to Get Six Pack Fast: Thank you friends for stopping by and leaving your valuable comments. Hey keep visiting Student Loan Blog & keep the blog ALIVE and HAPPENING
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Adam B. says:

July 27, 2009 at 10:55 am

This hits close to home. I had to finance college on my own, with the credit score of a teenager! Wish i had seen this blog back then. I also wish I knew about Wells Fargo Backstage. I have been passing their website along to friends who need help with school loans. Extremely user friendly and answers many questions.

http://backstage.wellsfargo.com

Good Luck!

July 28, 2009 at 5:11 am

@ Adam B: I am so glad you found a good resource in Student Loan Blog. That’s the main aim of my blog. Thanks for the message.

Good Day & Keep Blogging

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November 6, 2009 at 10:14 am

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January 10, 2010 at 4:35 am

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January 12, 2010 at 1:56 am

@ Second Mortgages: Ahh…well all I can say is better late than never I can still appreciate you as a regular reader to Student Loan Blog.

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January 13, 2010 at 11:08 am

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