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Student loans for bad credit — here are your best options

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There are many student loan options for bad credit borrowers. Learn about them here, including federal loans and private loans. (iStock)

Many students need to borrow money to complete their education, but you may be worried about your ability to do that if you have a low credit score or no credit history.

The good news is, your imperfect credit shouldn’t deter you as there are many options for student loans for bad credit. In fact, depending on your situation, you should likely be able to qualify for federal student loans at an affordable rate as well as for private student loans either with or without a cosigner.

While it may take a little extra effort to find the loan that’s right for you, it’s worth exploring the loans available to you so a lack of financing doesn’t derail your efforts to achieve your academic goals. Here are some of your best options.

Private student loans

While some private lenders require cosigners for borrowers who have low credit or no credit history, not all do. In fact, there are private loan lenders that cater to bad credit borrowers and that are willing to look at other metrics such as your job prospects after graduation.

You can explore these options by visiting Credible to see which lenders may be open to providing you with an affordable loan even with your current credit report.

8 OF THE BEST PRIVATE STUDENT LOANS IN 2020

Private student loans with a cosigner

Private student loans don’t offer the same borrower benefits as federal student loans, but they can still be a good option if you have exhausted eligibility for federal aid. However, private lenders generally have stricter credit and income requirements for who can qualify.

If you have a low credit score, one of the best ways to get an affordable private student loan is to apply with a cosigner. A cosigner with a better credit score could make it possible for you to obtain a loan you’d otherwise be denied or to get a much better interest rate so borrowing becomes more affordable.

You can visit Credible to view a rates table so you can compare fixed and variable interest rates from multiple private student loan lenders at once to see how much borrowing will cost you.

You can also use an online student loan calculator to determine both monthly payments and total repayment costs at different interest rates.

HOW TO FIND A COSIGNER FOR A LOAN

Federal student loans

Federal student loans are the best option for borrowers with imperfect credit because your credit score doesn’t matter for most loan types.

Direct Subsidized Loans and Direct Unsubsidized Loans are available regardless of your credit history at low fixed rates that are the same for every borrower each academic year. You can also qualify for a Direct Consolidation Loan regardless of credit, which allows you to group multiple existing federal student loans into one new loan with more flexible repayment options.

CORONAVIRUS STUDENT LOAN INTEREST WAIVERS BEING OFFERED — HOW TO TAKE ADVANTAGE

Direct PLUS Loans are another federal loan option, but while these aren’t available if you have adverse credit, there’s a very specific definition of what that means. “Adverse credit” includes having outstanding debts with a combined balance of $2,085 or higher that are at least 90 days delinquent or in collections or having a foreclosure, repossession, bankruptcy, tax lien, default, wage garnishment, or write-off of federal student debt within the past five years. And even if you have black marks on your record that qualify you as having adverse credit, you could still obtain a PLUS loan if you document extenuating circumstances or find an endorser without these issues.

To obtain any of the federal student loans available to bad credit borrowers, you’ll need to complete your Free Application for Federal Student Aid (FAFSA). There are annual and lifetime borrowing limits for subsidized and unsubsidized loans. Subsidized loans also require you to show financial need, although neither of the other two types of federal aid are means-tested.

Finding the best student loans for your situation

While there are opportunities to find student loans for bad credit borrowers, improving your credit score can open up the door to borrowing with your choice of lenders and may enable you to get more affordable rates on private student loans.

3 WAYS TO TACKLE PRIVATE STUDENT LOANS IF YOU CAN’T PAY DUE TO CORONAVIRUS

You can boost your score by paying your bills on time, making sure your credit report is free of errors and keeping your credit card balances low.

The sooner you develop a positive payment history, the easier it will be to borrow not just for school but for anything you need to get your career started after graduation.

3 THINGS TO KNOW BEFORE BORROWING FOR COLLEGE

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Bad Credit

Warner Robins GA Credit Repair Finance Score Improvement Service Launched

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New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

Fresh Start Consumer Services has launched a new credit repair service for clients looking to improve their financial future. Interested parties can sign up for credit consultations, in-depth credit analysis, credit recommendations and more.

Full details can be found at: https://freshstartconsumerservices.com/index.html

The newly launched services are designed to ensure clients can repair bad financial credit history, track their improvement campaign in measurable ways, and secure a better future for themselves and their family.

Clients can work with Fresh Start Consumer Services to clean up their past. This is achieved by working with the major credit bureaus and creditors to challenge the negative report items that affect the credit score.

Based in Warner Robins, GA, the expert team at Fresh Start Consumer Services is passionate about helping citizens to improve their credit score to give them more buying power. As a result of this, clients are able to secure more options in life.

The team understands that sometimes bad things happen to good people, and their services are designed to ensure that clients can get the most out of life. They also realize that a bad credit score can harm clients’ quality of life – and can be a difficult situation to get out of.

Fresh Start Consumer Services offer courses in credit repair and restoration, budget management, credit education and purchase assistance. Clients get easy access to their account 24/7 for live status updates on improvements, allowing them to fine-tune the management of their credit score.

Service options include personalized dispute options to fit each clients’ exact credit repair needs, an experienced case analyst and case advisor working personally with them throughout the process, custom dispute letters, and more.

For clients, there are a number of reasons to work with a credit repair specialist. Clients are able to secure significant savings on interest rates, attain better terms on loan products, and get access to the best credit card deals. They also gain access to more housing options.

The team states: “Fresh Start Consumer Services offers a unique combination of services that gives our clients the quality of life they deserve. We specialize in helping our clients achieve qualifying credit and the financial health they desire.”

Full details can be found on the URL above.

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Is it Possible to Trade In a Car Early?

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Yes, early trade-ins are possible when you finance a vehicle. In fact, there’s no set time frame on trading in a car. Most dealers won’t take a trade-in that’s too fresh, though, and it’s best to wait until there’s equity in your vehicle before you try to trade it in.

What’s a Trade-In?

When you trade in a car, you’re essentially selling it to a dealership and financing something else from their lot, without the hassle of selling and buying with separate transactions. There are no hard-and-fast rules about how and where you have to trade in your vehicle.

However, it’s beneficial to shop around and see which dealers can give you the best price, but you shouldn’t just head to a car lot and ask what they’re willing to offer you. When the time comes, there are several steps you may want to take to get ready for the trade-in process, especially if you’re looking to trade in early before you’ve had the chance to close the equity gap.

Trading In Early and Equity

Are Early Trade-Ins Possible When You Finance a Car?When you’re trading in a vehicle soon after you’ve financed it, you’re more likely to be in a negative equity position – owing more on your auto loan than the car is worth.

This is especially true if you financed a new vehicle, or a certified pre-owned car. Newer vehicles depreciate faster than used ones, which have typically already seen their biggest drop in value.

Depreciation is the loss of value over time and it can’t be stopped. It can be slowed, though. The best way to do this is by using a large down payment when you finance. This reduces the amount you have to borrow, and leaves you owing a price closer to what the car might cost after you drive it off the lot. New vehicles typically lose around 10% of their value as soon as they touch the road.

If you don’t have the equity to recoup your investment in a car, you have to make up that difference out of your own pocket. It’s much easier to trade in a vehicle that can pay for itself, but this isn’t always possible when you’re trying to do so early.

Preparing Your Early Trade-In

When you know that you’re starting with a deficit on your trade-in, it’s a good idea to be prepared to get the most you can. Clean the car thoroughly, both inside and out, and make sure to fix any minor damage that may have occurred in the short time since you took out your loan.

Getting the vehicle detailed and fixing major mechanical issues isn’t likely to result in a worthwhile increase to the cash in your pocket, so don’t go overboard. Remember, you want to make as much money on this trade as you can, and it’s probably cheaper for the dealership to fix any large issues.

Before you set foot in a dealer to get your trade-in appraised, it’s a good idea to know approximately how much your car is worth. You can find this out by going to online valuation sites such as Kelley Blue Book or NADAguides. Be sure to be honest when you’re inputting information, since it’s the only way to get an accurate estimate of possible value.

Shopping for Trade-In Values

Once you have the estimates (which you should print or save to your phone), it’s time to take your trade-in to get looked at. Taking it to a few different dealerships is a good way to find the best deal you can.

We recommend taking your early trade-in to at least three different dealers, making sure at least one of them is a franchised dealership that sells your vehicle’s brand. A franchised dealer that sells your car’s brand may be more likely to offer a higher price.

Depending on your credit situation, it’s likely a good idea to ensure you’re trying to trade in your vehicle to a dealership that can work with your situation, especially if you have poor credit. And that’s where Auto Credit Express can come in handy.

We have a nationwide network of special finance dealers that are signed up with subprime lenders who can help people in many different types of credit situations, including bad credit, no credit, and even bankruptcy.

The process is easy to get started – just fill out our free auto loan request form. We’ll match you to a local dealership that can get you started on the financing you need after your early trade-in.

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Jackson receives financial reporting award

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JACKSON, Mich. (WILX) – The City of Jackson is getting international recognition for its transparency in financial reporting.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to Jackson for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2019.

The CAFR was judged by an impartial panel to meet the high standards of the program. Standards include demonstrating a constructive “spirit of full disclosure” to clearly communicate the financial story of the City and encourage users and groups to read the CAFR. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting.

“This is great for the City as a whole because it improves our bond rating,” said City Manager Jonathan Greene. “We believe this award will help our residents understand the work we do to make the City’s finances transparent and easy to understand.”

Bond Ratings are letter grades assigned to bonds that indicates good or bad credit for an entity like the City of Jackson. By having a strong bond rating cities are granted opportunities to pay back interest at lower rates.

The CAFR can be viewed HERE.

Copyright 2020 WILX. All rights reserved.

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