Is it possible to get Private student loans with poor credit?
November 11, 2010 by admin
Filed under Student loans
I have some credit card debt and a personal loan that I really want to consolidate with a private Student loan b/c the interest rates are better. But of course I dnt have good enough credit to get one without a cosigner. I have no one who can do that for me. . . . . . any suggestions? And I know about “debt consolidation loans”. I refuse to do that b/c I dont want to default on them seeing as how this wrecks your credit. I just want to get better interest rates!
If your credit is really poor, then you will not qualify for a private student loan without a cosigner with excellent credit. Do not use debt consolidation loans or debt repair clinics — they lower your monthly payments but spread them over a longer period — if you make a spreadsheet showing the costs, you’ll actually pay more in the end. If you are able to obtain a private student loan, make sure that it is a fixed low-interest rate. I would avoid this option though because student loans aren’t dismissed through bankruptcy. . . your credit card debt and personal loan could be down the road if your situation changed for the worse. You might concentrate on paying them off more quickly so that you can save interest. Pick up some extra hours at work or do some side work like babysitting, tutoring, or yardwork and put all of that additional money towards your debt. Cut your expenses and put that money towards the debt as well. You could even give plasma twice a week for an additional $100/month to put towards your debt.
not without a cosigner. you could do federal loans but they are minimal amounts, around $5500 for a dependent freshman