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Helpful facts for understanding
direct loans student consolidation
Bad Credit Loan -- How to Get the Best Interest Rate
Bad credit loans are in high demand. And if you do any research on "bad credit loan", you'll find plenty of advice on how to get the lowest interest rate. You'll also find plenty of people willing to give you a bad credit loan, but you'd be making a mistake to accept it.
Unfortunately, most of what you'll find approaches the problem from the wrong direction. The way to get the VERY best interest rate on a bad credit loan is usually overlooked or concealed altogether.
But before we continue, let's digress briefly and look at how significantly the higher rate for a bad credit loan affects the borrower.
Let's say you want to buy a house, but have bad credit. No matter how diligently you shop for a lender, you're still be charged a higher interest rate for a bad credit loan than if you had good credit.
With good credit, you might get a mortgage loan at 6% interest. But a bad credit loan will cost you closer to 12%. Assuming you get a $100,000 mortgage over 30 years, the difference you'd pay in interest amounts to a monstrous $154,461.60 MORE because you have bad credit. That's over 1 times the loan itself!
Now getting back to our original problem, how can you get a better interest rate for a bad credit loan? The answer is probably not what you were expecting.
The solution is to "think outside the box." The way to get a bad credit loan with the best interest rate is to NOT get one! Instead, spend a couple of months fixing your bad credit, and then look for a "good credit loan" instead.
This answer probably comes as something of a shock to you. More than likely, several objections to this approach will come to mind.
1. "I need a loan NOW" or "It's not worth my while to wait until I repair my credit."
Oh really? Well, is it worth a savings of $150,000 or more? Granted you may not be looking for a $100,000 loan. But even if you want to borrow only $10,000 or so, the better rates you'll enjoy with good credit will still save you several thousand dollars.
2. "Fixing my credit will take too long, or it just isn't possible."
It's often possible to make very a significant improvement in your credit rating in just a few months, and in some cases as little as 30 days.
3. "I don't know how to repair my credit and can't afford to hire a credit repair agency"
For a fraction of the cost of a professional agency, you can purchase a good book on credit repair that will walk you through the whole process.
4. "Do-it-yourself credit repair is too difficult" or "I don't think I can repair my own credit"
Don't be intimidated by the idea of fixing your own credit. If you can write a few letters, address, stamp, and mail them you can repair your own credit.
Your decision comes down to this; you have two choices.
1. You can spend some time (maybe a LOT of time) shopping for a bad credit loan with the lowest possible rate, and still end up paying thousands (even tens of thousands) more in interest.
2. You can spend some time fixing your credit and spend those thousands on your family's needs, instead of paying them to your lender.
Do you really think your lender needs your hard earned money more than you and your family need it? Anybody can work on fixing their own credit. That's right, anybody!
Get a good book on credit repair and get started TODAY!
(c) eBusiness Power
About the author:
Jim Eastman is the support contact for http://www.ErasingBadCredi t.com. People wanting to repair their credit rather than pay thousands too much for a bad credit loan, can visit the site and sign up for a free mini-coures on credit repair.
More Useful Resource and Updates on direct loans student consolidation
- Where to Find College Funding in a Credit Crunch (Carteret County News-Times)
(ARA) - This year alone, more than 60 lenders have exited the federal student loan market and in the private market, most lenders have significantly tightened restrictions or left the business altogether.
- Have a mortgage, loan linked to LIBOR? Brace yourself now (The Clarion-Ledger)
The London Interbank Offered Rate, or LIBOR, sounds like one of those funny British idiosyncrasies, like warm beer or the royal family. But if you have an adjustable-rate mortgage or a student loan tied to the LIBOR, you will not be amused by what's been happening to this index in recent weeks.
- Student loan fugitives (CNN Money)
Carl, a Florida native now living overseas, is afraid to move back to the United States. That's because he can't afford to pay his student loans.
- Economy's impact on student loans not dramatic at UC Davis (California Aggie)
Students in need of a loan needn't be intimidated by the looming credit crisis. Although more students are taking out loans this year, university officials urge them not to worry - the credit crisis will not dramatically hinder their ability to pay tuition.
- Iowa Student Loan under fire (The Daily Iowan)
UI junior Danielle Haynes said her only option for financial aid is also the worst one: private loans. She would've applied for the Free Application for Federal Student Aid, but her parents were behind on their taxes, so she could not.
- College costs up again: 6.4% public, 5.9% private (USA Today)
Amid the economic turmoil, students and their families are getting little relief from rising college costs, which jumped 6.4% at state universities this fall, according to new figures out Wednesday.
- AG report faults some Iowa Student Loan practices (The Des Moines Register)
The practices of the Iowa Student Loan Liquidity Corp. favored the goals of increasing access to loans and offering families a choice of loans over making the lowest-cost loans available to borrowers, according to Iowa Attorney General Tom Miller.
- Explore the options for college loan repayment (Baltimore Sun)
Eileen Ambrose -- Personal Finance T he grace period on federal student loans is almost over if you graduated from college in the spring. Soon you will have to start making payments.
- Fitch Places Access Group 2005-A & 2005-B on Rating Watch Negative (wallstreet:online AG)
Fitch Ratings has placed the following Access Group Inc. student loan asset-backed notes on Rating
- Fitch Places Access Group 2005-A & 2005-B on Rating Watch Negative (Centre Daily Times)
Fitch Ratings has placed the following Access Group Inc. student loan asset-backed notes on Rating Watch Negative following Friday's missed swap payments from Lehman Brothers Special Financing Inc (LBSFI):
- Student Aid on the Web
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- Direct Consolidation Loans
U.S. Department of Education program under which borrowers can apply online for consolidation of their federally-insured student loan debt.
- Direct Loans - Student Publications
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- Federal student loan consolidation - Wikipedia, the free encyclopedia
... Federal Direct Student Loan Program (FDLP) include consolidation loans that ... hype, opportunity lurks for students with loans.", Harvard Gazette, 2004-02 ...
- Federal Direct Student Loans
Under the Direct PLUS program, parents may borrow for dependent students. ... that are unable to obtain consolidation loans from lenders under FFEL or who ...
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