Having bad credit can affect your ability to get a loan when you need one

Having bad credit can affect your ability to get a loan when you need one. There are lenders out there who will let you borrow student loans even if you have bad credit. You may still be eligible to qualify for Federal student loans including a Stafford Student Loan and a PLUS loan. However, you may be required to have a co-signer on the loan. The co-signer will be legally responsible for the amount due on your student loan if you default on your payments. This is quite a heavy burden on most people so it is even more important that you budget wisely to ensure you can repay the student loans. Some private lenders of bad credit student loans will charge you a very high interest rate. Others will require you to complete a debt management course or a budgeting class. It will depend on the individual lender, the shape your credit is in, and how it got that way. Most lenders understand circumstances beyond your control including losing your job and medical reasons. However, most bad credi
t issues result from not knowing how to manage money properly. If that is the case they will encourage you to gain those skills to prevent future repetitions of that cycle. Are your student loans coming due soon? It is a good idea to consider consolidating them into one loan payment. You can consolidate your loans even if you have bad credit through a government program or through a private lender. Make sure the consolidation interest rate isn’t more than what you were paying before though because your interest rate will be higher if you have bad credit. Look for a private lender who states no credit check will be done for consolidation student loans. All they look at is the amount you owe and if your income is sufficient enough to cover the consolidated student loan payment they can offer you. Most private lenders will treat a student loan like any other loan, so the worse your credit is the higher interest rate you will pay or you may not be approved at all. If you have bad
credit you should first apply with a Federal student loan program because they are more lenient about credit ratings than private lenders. You may also want to consider a student loan from your school of attendance that will be backed by the Federal government if you need a student loan and you have bad credit.

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