Credit checks are common for most borrowers, especially when it comes to college students. There are a few ways to get no credit check student loans to finance a college education, however, and we’ll show you how to do just that by looking in all the right places.
No Credit Check Loans
Naturally, loans without a credit check do have their advantages. A no credit check student loans company will enable you to borrow money regardless of your credit history.
Traditionally, new college students have little or no credit, and those who have gotten behind on their finances may find that they also have a bad credit score from bank overdrafts or unpaid bills. Naturally, lenders tend to understand that many borrowers make mistakes early, but eventually become wiser and better stewards of their personal finances, which makes them capable buyers.
A college loan is one of the least risky loans for banks, and one of the most likely to have low interest, little concern over your credit history, and the best repayment terms. As you may or may not be aware, student loan companies issue student loans with the understanding that they must be repaid. Yes, that is correct. Everyone will eventually have to pay back their student loans as they cannot be discharged in bankruptcy, cannot be eliminated in debt settlement, and loan companies can garnish wages in order to ensure their loans are paid back.
Federals student loans from the department of education are single-handedly the best way to reduce your borrowing costs, increase your chances of approval for a student loan, and avoid having your credit pulled. A federal student loan is also known as a Stafford student loan, which is issued without pulling a credit score.
Stafford student loans are loans that are issued by the federal government, and repaid to the federal government. In order to qualify for a Stafford loan, one must first fill out the FASFA, or free application for federal student aid. Once you apply for the FASFA, you’ll have the opportunity to borrow student loan money from Stafford loans. A Stafford loan requires that the borrower sign only a contract that requires repayment. A Stafford loan does not check your credit history, and the APR is decided not by your income, assets or credit report, but by a legally set rate of interest.
By far, the federal loans program is the best way to find no credit check student loans. In amounts ranging from $3,500 your freshman year to $5,500 your senior year, you can borrow at a fixed interest rate of 6.2% annually. The interest rate is set by Congress, and has historically trended at or near a fixed rate of 6.2% since the program converted from variable to fixed rate loans.
Private Loans and Consigners
If your credit score does become a concern, and you cannot borrow the funds you need from the Federal government, then consider seeking out a new loan from a private lender. Private lenders will likely pull your credit report, however, you can decrease the importance of your credit report in the lending process by having someone cosign for you.
A cosigner agrees to put their credit on the line to accept the payments should you fail to pay back your debts. Traditionally, parents, grandparents, aunts and uncles, or even friends have been capable cosigners that allow students to make use of someone else’s credit score to get better borrowing terms. Should you seek out a cosigner, do be sure to make payments on time, every time. Until you graduate, your cosigner will be named on the loan until they are discharged from responsibility. If you fall behind, your cosigner must make payments, and their credit score will be affected by your borrowing decisions. Do not let your problems affect your friends and family, and always be sure to pay your student loans with regularity.