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Best Private Student Loans with Bad Credit • Benzinga

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Education can be the key to a better life, and you don’t want your bad credit to keep you from working for your future. Start with our list of the best private student loans if you have bad credit to pursue the degree you’ve always dreamed of.

Best Lenders for Private Student Loans with Bad Credit

Many lenders have responded to the needs of non-traditional students. These lenders and loan comparison services will connect you with lending solutions for your bad credit problems. Keep in mind — you may need a cosigner or a loan with special provisions that make lending to someone with bad credit less risky.

How to Repair Credit

You need good credit to get credit, and you need access to credit to make moves toward more financial security in the future. What do you do? These steps can help you repair your credit:

  1. Never miss a bill payment again. Payment history is a huge part of your credit score. Anything less than a perfect record hurts your credit, so make this a priority. 
  2. Apply for a secured credit card. These are secured by your own deposits so you can build credit without taking on too much risk.
  3. Apply for a credit card. These are sometimes easier to get approved for as they have lower credit limits. There’s less of a chance of abusing credit that you can only use at certain retailers. Pay it down every month and on time to build credit.
  4. Look for credit-builder loans from your bank or credit union. These are small installment loans. Credit builder loans will establish solid payment history and financial responsibility to creditors.

Slow and steady wins the race here. Making small, deliberate changes to your financial habits will raise your score as you repair your credit.

APR

Fixed 3.52% to 12.99%Variable 1.24% to 13.01%

Minimum Credit Score

540 to 660, minimum varies by lender

Best for Financial Literacy Tools: Student Loan Hero

An all-in-1 loan comparison and financial literacy platform, Student Loan Hero provides student loans, loan refinancing, personal loans and bad credit loans. Enter your school of choice to compare private loan offers from multiple lenders. 

By comparing offers from multiple lenders, you’ll be able to find the most suitable without negatively affecting your credit score. Your terms and rates will be personalized to your unique credit history. 

As always, applying for a cosigner with solid credit will likely net you more favorable options. If you’ve had a chance to build good credit, you’ll be good to go. Some lenders do offer loans tailored to those with imperfect credit.

Some lenders with Student Loan Hero offer cosigner release loans. Your cosigner will be on the hook for the loan initially, but if you can prove you’re creditworthy by meeting all the stipulations set by the lender, your cosigner will be released from the loan early. 

Student Loan Hero also offers useful financial literacy tools. With Student Loan Hero’s financial calculators, you can construct a debt repayment plan using any of its repayment scenario calculators. It can also show you useful debt busting hacks

Financial know-how can help you pay off your student loans as quickly as possible, and save you money in the long run.

APR

Fixed As low as 3.62%Variable As low as 1.24%

Best for Loan Comparison: Credible

A trusted player in the loan game since 2012, Credible offers risk-free loan comparison to prospective borrowers. Credible is a free service that lets you compare private student loans and more — you’ll find personal loans, mortgages, refinancing and credit cards.

With over 2,200 educational institutions that work with lenders on Credible, you’ll have options. And connecting with lenders takes less than 3 minutes and a short survey. 

You’ll be able to compare your personalized offers, terms and rates side-by-side. Checking your rates won’t hurt your score, so you can shop around safely and make the most informed decision possible.

Lenders with Credible do prefer borrowers with good credit, so a cosigner will improve your chances of getting good loan offers. Every lender with Credible offers fee-free loans. 

Choosing and signing on for a loan can be daunting. Credible’s knowledgeable Client Success Team will help you from the beginning to the end of this process. Engage with them via Credible’s chat feature to get started today.

Best for Member Benefits: SoFi

SoFi is both a lender and an all-in-1 financial hub. It empowers members to reach financial independence and security. Its range of products are innovative and include loans, investments, insurance and financing, along with a suite of financial tools.