Get Approved for a Private Student Loan With Bad Credit
Having bad credit may seem like a major obstacle when trying to get approved for a private student loan. Usually you'll need a co-signer to get approved for this type of loan, but this is not always the case. The important thing is to do plenty of research on the various financial institutions that offer student loans for people with bad credit or no credit history, because they do exist. Be persistent and you'll get approved for a private student loan sooner or later.
Instructions
Instructions
1. Determine your financial needs for the particular school or program you are applying for or have been accepted by. Be as accurate as possible about the amount of money you need. Interest on private loans starts to accrue when the loan is given, so don't take more than you need. Factor in your tuition, room and board, scholarships, grants, work study funds and federal aid. The remaining balance should be your private loan objective.
2. Choose your lender. Shop around for the most appropriate lender for a person in your situation. Lenders vary quite a bit in the amount of money they will give you and the interest rates they apply. Check with your current financial institution to see if they offer something for students with little credit history or bad credit. Choose a lender that offers low interest rates and opportunities to lower that rate through punctual payments and automatic debits.
3. Complete the application process. You will need to provide as much information as possible regarding your income and debt. You'll probably need to supply pay stubs and tax returns. Do not misrepresent any information about yourself.
4. Choose a co-signer. This is almost always necessary for students with bad credit history. Lenders generally will not lend money if there is too much risk involved. Dependent students can usually use a parent or sibling as a co-signer. Independent students can use a spouse to co-sign.
5. Stay in contact with the lender to see if your loan was approved. Most lenders notify borrowers of loan approval within a few days of the application submission and supply funding within two weeks.
Tags: credit history, amount money, Approved Private, Approved Private Student, interest rates