One of the most important things to do when looking into student loan options is to check your credit score. Parents who are helping students prepare for college or post-secondary school should know what their credit score is before applying for a loan. Good credit scores (750 or more) will result in the best offers including a lower interest rate in many cases.
Think of getting a student loan for college as similar to buying a house or car or any other major purchase that might be made. It involves a lot of money and must be paid off over a long period. This is why it is essential to look at all of the options before jumping in.
Financial technology can help parents and students to find the best deal. There are thousands of websites and resources that help parents and college seekers to get the help they need to attend school and get their financial arrangements worked out.
Checking your credit score may not be enough if you have previous negative marks on your credit report. Experts advise future borrowers to look into getting these marks removed before applying for private loans.
Personal credit is usually not checked if applying for federal loans so please note that this applies mostly to private lenders. Still, it’s a good idea to be aware of your credit rating and check your credit score before filling out a student loan application of any kind.
How to Check Your Credit Score
If you have never checked your credit score, you can go to any one of the following sites to get started. You will be able to input your information, and these sites will use the aggregated data to show your credit score according to the top reporting credit bureaus. It will also make recommendations as to how to improve your credit score so that you will have a better chance of qualifying for a lower interest loan in the future.
Credit Score Sites
My personal favorite is Credit Wise because it not only gives the user a look at their credit score updated to the minute, it estimates the next credit check that will occur to rate the rating, as well as offering valuable suggestions as to how to improve it. Additionally, there is a simulation tool that allows users to put in various factors and see how they will influence the rating.