Is It Possible to Get a Student Loan with Bad Credit?
A good education is the ticket to a prosperous life. Investing any amount of money on your studies is not a thing that you will regret in the long run.
Though an education loan can show you the path towards a good life, you need to have a good credit habit to secure a loan. An individual with a bad credit may wonder what are the ways to pursue his/her most desired course in a reputed institution or abroad.
If you are one of those individuals with bad credit and looking for a student loan, this article is an answer to all your doubts.
What Is a Bad Credit?
A bad credit history or credit score is a result of your past mistakes in managing your credits. To be precise, you get bad credit due to the following reasons.
Late payments on your loans and credit cards
If you have missed your payments on your loans and credit cards
Written-off or settled account
Too many hard enquiries
A bad credit puts you in the bad book of the creditors and any future loan application is turned down due to the above reasons.
How to Get Instant Approval on Student Loan with Bad Credit?
The student loan allows you to make the repayment after completing your education. However, to become eligible for the loan, you must have maintained a good credit track record. If not, you can consider the following ways to secure an education loan.
Secured Student Loan: With a considerable collateral, you are very likely to become eligible for a student loan even with a bad credit. Evaluate the value of your assets and you can pledge them to fund your education.
Good Credit of Your Father/Guardian: While you may have a poor credit history, with the good credit report of your guarantor, you can get a student loan. The lender will do a background check on the creditworthiness, income and employment of your guarantor.
NBFCs: There are multiple ways when one door shuts. Though the leading banks consider your credit score and report seriously, Non-Banking Financial Companies (NBFCs) have a relaxed approach towards credit score. With a guarantor and security, you are very likely to obtain a student loan from NBFCs even if you have a low credit score.
P2P Lending Websites: Peer to Peer lending websites provide good loan amount for people with bad credit. The creditworthiness is evaluated by combining your personal data and technology. The interest may be little higher than the banks. However, you have higher chances of getting a loan through P2P lending system.
Gold and Property to Your Rescue: A gold loan or a loan against your property can get you the instant fund you need for your education. The difficulty in this case is that you may have to start the repayment immediately whereas in an education loan, the repayment starts after completing your studies.
Should I Take a Student Loan with a Bad Credit?
Undoubtedly, the answer is yes. As education ensures a promising future, why deny it? A student loan can help you in clearing all the other loans in the future. An education loan is a sensible investment that cannot be compromised even if you go through a bad credit. However, be cautious about your loan applications as too many applications and rejections may further damage your credit score.