Bad Credit Student Loans – How To Ensure Your Funded College Future Is Still Possible
Having a poor credit record when seeking a student loan can make things a bit tricky as lender are usually wary of those who have not handled money – and debt – well in the past. So, it’s time to seek out those special loans for those students with poor credit records.
Finding the Sources of Bad Credit Student Loans
The U.S. companies that offer debt settlement services have become major providers of bad credit student loans. Two of those companies, HFC and Beneficial, have gained recognition as dependable subprime lenders. The low rates on their loans attract students who are after bad credit student loans.
Still, those two companies are not the only source of bad credit student loans. Careone Credit, Credit Solutions, Credit Dot Com and Lower My Bills also offer loans to students with less than perfect credit. Today, students can use the Internet to obtain information on those various companies.
Security for Bad Credit Student Loans
There was a time when the phrase “bad credit student loans” seemed like a phrase from a work of fiction. At one time lenders refused to offer a loan to anyone with bad credit. More recently, lenders have advertised the availability of both secured and unsecured loans.
In a secured loan, a borrower pledges something that exceeds in value the numeric quantity of the loan amount. A home or car is most often pledged in a secured loan. Of course, neither of those items is always possessed by the person who wants one of the bad credit student loans.
Fortunately, secured loans can also be given to someone who owns valuable collectibles. In fact, pledging of valuable collectibles in return for a bad credit student loan might offer certain advantages. The student would not need to worry about where to store those items, as they would be held, at least temporarily by the lender.
=Comparing Secured and Unsecured Loans
When a borrower gets a secured loan, he or she can sometimes have as long as 25 years in which to repay that loan. A wise borrower starts immediately to save money for repayment. Then the borrower can offer the lender a large down payment, thus lowering the interest rate on the loan.
They are seldom larger than $25,000. Unsecured loans must be paid-off much more quickly than secured loans. Lenders of unsecured loans generally want to have their money returned within five to ten years.
The Advantages of Unsecured Bad Credit Student Loans
A student with bad credit can easily go online and apply for an unsecured loan. An unsecured loan involves much less paperwork than a secured loan. Lenders tend to have promised funds for an unsecured loan available in a surprisingly short time.
The loan features mentioned in the preceding paragraph bring into the limelight the reason that increasing numbers of students have chosen to apply for bad credit student loans.
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