Education can be the key to a better life, and you don’t want 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 get 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 put you in touch with loan solutions for your credit problems. Keep in mind that you might need a co-signer or a loan with special provisions that reduces the risk of lending to someone with bad credit.
How to repair credit
You need good credit to get credit, and you need access to credit to move towards greater financial security in the future. What are you doing? These steps can help you repair your credit:
- Never miss a bill payment again. Payment history is a big part of your credit score. Anything that isn’t a perfect record is bad for your credit, so make it a priority.
- Apply for a secure credit card. These are secured by your own deposits so that you can build credit without taking too much risk.
- Apply for a credit card. These are sometimes easier to approve because they have lower credit limits. There is less chance of abusing the credit you can only use at some retailers. Pay it back monthly and on time to build credit.
- Look for credit-creating loans with your bank or credit union. These are short term loans. Loans to creditors will establish a strong payment history and financial accountability to creditors.
Slowly and steadily wins the race here. Making small, deliberate changes to your financial habits will boost your score as you repair your credit.
Best for loan comparison: believable
A trusted player in the credit field since 2012, Credible offers a comparison of risk-free loans to potential borrowers. Credible is a free service that lets you compare private student loans and more – you’ll find personal loans, mortgages, refinances, and credit cards.
With over 2,200 educational institutions working with lenders on Credible, you’ll have options. And connecting with lenders takes less than 3 minutes and a short survey.
You will be able to compare your offers, conditions and personalized rates side by side. Checking your rates won’t hurt your score, so you can shop safely and make the most informed decision possible.
Lenders with Credible prefer borrowers with good credit, so a co-signer will improve your chances of getting good loan deals. Every lender with Credible offers free loans.
Choosing and signing a loan can be daunting. Credible’s knowledgeable Customer Success Team will assist you from start to finish in this process. Engage with them through Credible’s chat feature to get started today.
Best for Member Benefits: SoFi
SoFi is both an all-in-one lender and financial center. It enables members to achieve financial independence and security. Its product line is innovative and includes loans, investments, insurance and financing, as well as a suite of financial tools.
SoFi members benefit from major advantages. Not only will you get professional coaching, financial planning, referral bonuses, estate planning, and merchant discounts, but you’ll also get discounts on SAT and ACT prep courses and more. Your membership also prepares you for a free subscription to Edmit Plus, a platform to help you with all facets of college planning.
Checking your rates does not affect your credit score. There are a few types of SoFi private student loans to choose from. Undergraduate and parent loans, as well as MBA and law school loans are among the choices.
It is very easy to apply for a loan once you have selected from your offers. SoFi private student loans are free. SoFi offers several reimbursement options. SoFi loans are known for their competitive rates and flexible terms.
Ideal for loans based on future income: ascension
Ascent is a private student loan service specializing in accessible private student loans. You can choose both credit based loans and future income based loans.
Rather than black and white borrower standards, Ascent reviews credit-based loan applications on a case-by-case basis. You may also be eligible for a loan based on future income from Ascent if your projected income potential shows that you will be able to repay the loan. It also offers co-signatory release loans.
The Future Income Based Loan is limited to students in their first or final year of college with at least 2.9 GPA. Even if you don’t quite meet the minimum income or DTI standards, you may be eligible if you meet the score in other areas.
Financial literacy education is an integral part of Ascent’s application process. Ascent believes that your education is a financial investment in your future. You want to make sure that your potential income is worth the money you invest in your education.
Eligibility for a private student loan
You can expect to meet the following requirements with most lenders:
- Be 18 years of age or older
- Have a high school diploma or equivalent
- Have at least a credit score of 670
- Proof of income
- Make sure that you are financially able to repay the loan under the given conditions
- Enrollment in an eligible institution or in an eligible program
Although this is the gold standard, different lenders may have additional or different requirements. You can confirm the details by visiting a lender’s website or using a free loan comparison service like Credible or Student Loan Hero to compare different standards.
Student loans without a credit check
You cannot bypass a credit check when applying for a private student loan. But you won’t get any when you apply for federal student loans. You will complete a Free Application for Federal Student Aid (FAFSA). This determines your eligibility as opposed to your credit score or that of a co-signer.
Since there is a cap on the federal assistance you can receive, you may need to turn to a private loan to make up the difference. If you are not eligible for federal assistance or if you have reached your maximum borrowing power, try to find a co-signer for your loan if you are not sure your credit report will pass the test. detection.
Many lenders offer prequalification for loans. This means you can see your eligibility, offers and terms and rates without risk or harm to your credit.
Don’t let bad credit slow you down
If you’re ready to start the rest of your life but have bad credit, don’t worry. There are ways to get to where you need it with federal and private student loans. While you usually need good credit to qualify for a private student loan, a co-signer can increase your eligibility. Or search for specific bad debt loans from the lenders and loan comparison services on our list.
Don’t let imperfect credit hold you back. Take the leap today to get one step closer to making your education a priority.
Loan-Growth offers 5, 10, 15, 20 and 25 year student loan refinancing terms with fixed rates as low as 2.80% APR and variable rates as low as 1.89% APR.
Lend-Grow also pays off your loan – 0.10% APR every month for 3 years! Here’s what that means: Lend-Grow APR deposits of 0.10% of your funded loan amount each month for up to 3 years (as long as your account is active) with repayment rewards.
Lend-Grow deposits the reimbursement reward directly into the loan account you specify when registering for Payback Reward. The repayment reward is not a rate reduction and you must continue to meet your full payment obligations with the lender each month.