Many people think that their bad credit score might prevent them from getting a student loan, but that’s simply not true. While some private lenders won’t lend to people with bad credit, most student loans are backed by the government and don’t depend on creditworthiness. You shouldn’t put off your education just because you’ve made some financial mistakes in the past.
As with any loan, some lenders require that you have a co-signer to guarantee the loan. If you have someone willing to co-sign for you, a loan is almost always possible.
If you don’t have someone to cosign for you, the next option is to talk to your lender in person. Explain your situation and how you plan to repay the loan. If your credit score is lower, the lender will charge you more interest, but is likely to grant the loan.
If you already have a loan from an institution that you have been repaying regularly, you can ask to extend that line of credit. School is a good reason, and most lenders will be happy to lend you more money as long as you have demonstrated responsibility in repaying the original loan.
One thing you should never do is use a credit card to pay for school. There is simply no need to do so. Any student loan offers lower interest rates than even the best credit card offer. Even if you have an initial interest rate of 0%, know that you won’t be able to pay off the loan before the interest rate skyrockets. Avoid further damaging your credit score by not using credit cards.
Your best option is to try to qualify for a government student loan. Not only are these loans not dependent on your credit score, but many of them are subsidised, meaning you won’t have to pay interest until you graduate. Depending on how long you study and how much you borrow, this can save you thousands of euros. The process is simple and can be completed in a few minutes. You will receive a response within a week or so. The financial aid office at your school will help you step by step.
Tuition fees continue to rise, but so does the need for quality education. Don’t let bad credit stop you from improving and achieving your dreams.