Your Credit Score
When you are applying for a private student loan, your credit rating is going to be much more important than it is for federal student loans.
Before you find out your credit rating, though, there are a few things you might want to know.
In spite of your own credit rating, you can apply for any private student loan, as long as you have a cosigner.
You cannot have a credit rating of any kind without first borrowing money.
Give yourself a good credit rating
The savviest way to give yourself a good credit rating is to borrow money then repay it. Take out a small loan to buy something you want, keep the loan manageable and make your payments regularly.
A good example of something along this line would be: borrow money for a motorcycle.
You might even borrow money on a credit card and simply repay it. If you borrow money from a bank, the monthly interest rate will be lower, but you will definitely be charged an interest rate.
Bad credit rating
You are almost guaranteed to have a bad credit rating, if you have any of the following:
- Bankruptcy declaration
- Collections history
- Too many late payments
Free Credit Score?
There are no free credit reports on the internet. Companies will advertise free trials of their service but you will still have to give them your credit card number and they may charge hidden fees. Dont be fooled by anyone who offers you a free credit report.
There is one way to get a free credit report. That is to go down to a bank and ask for a loan. Have a good (honesty is the best policy) story as to why you need the loan. Then be prepared to wait while they get a credit check on youit may take a few days. In the end, this, too, is hardly freewhen you count all the time and trouble you have gone through.
You will almost certainly be better off simply purchasing a credit score, in order to get a guaranteed accurate account of your accounts. There are links nearby that are as good as any place, to start.
Onlinelearning101.com. Used with permission. See www.onlinelearning.com