Will you or one of your children need to take out a student loan in order to complete a college degree? If so, you may be wondering 1) How easy or difficult these loans are to obtain, and 2) How borrowing money for school might affect your credit.
It would be great if a wave of a magic wand could fix your credit overnight. And while that can’t happen, there are steps that you can take to accelerate the recovery of your good credit.
Credit-challenged consumers who understand their credit scores (and what really affects them) as well as their credit reports (and what is and isn’t in them) will find themselves ahead of the game – considering that 40 percent or more of Americans with good or excellent credit don’t really understand either one.
Picture this. You see an appealing credit card offer, so you apply. And much to your dismay, your application is unceremoniously denied. What? Why? If you’re genuinely surprised by the rejection, there are a few steps you can follow to get to the bottom of why a particular lender sees you as a credit risk.
For years, I was plagued by my poor credit history. I thought I would never be able to fix it or get approved for a car loan. But once I took control of my situation, I was able to rid myself of the negative financial marks that had been holding me back. I had to learn how to manage my accounts better, and get access to my credit reports so I could see what the lenders saw. I had to be patient, as the results weren’t going to happen overnight. During this process, I took the time to learn more about how long different bad credit situations can affect someone.
In today’s world, our credit reports are an important part of our lives. They can be the key to anything from auto loans to getting hired for a great job. But when it comes to monitoring it, people have the tendency to drop the ball. A recent American Bankers report revealed that only 60% of Americans checked their credit report last year. A credit score is detrimental to many aspects of our lives. It helps us get approved for loans, affects the amount we pay in interest on said loans, can be used as a deciding factor by a landlord in a rental agreement or an employer, and by insurance companies when determining your premiums.
Credit is a difficult topic to discuss, and because the subject is often regarded as taboo, there are a lot of myths circulating about how credit works. So, before you accept anything that you hear about credit as fact, make sure you check with a reliable source first.