How to Skip Bad Credit Worries Like everyone else that has bad credit scores, students face a stressful time when they are trying to secure funding to cover their college tuition. But there are student loans with no credit checks to be found, loans that skip the whole issue of credit histories. These loans are far more prevalent than it might seem, and approval is almost guaranteed. The attraction, of course, is that with no credit scores considered in the loan application, there is no time taken up in checking credit histories, and less reason presented to deny the application at all. Therefore, guaranteed fast loan approval is almost certain, making the chances of securing the much-needed funds almost 100%. However, as with every kind of financial arrangement, there are factors that need to be taken into account. Not least is the fact that the student loan does need to be paid back, so a method of repayment needs to be evident. Students and Bad Credit It might seem unfair that students are considered to be bad credit borrowers from the very beginning. The fact is that credit scores are built up over time, and since a student usually is coming straight from high school, they have no history of repaying loans themselves. So, they start on the bottom rung, leaving student loans with no credit checks their ideal funding option. Of course, not all students have come straight from high school, with mature students leaving the workforce to further their education and their job prospects. They may bring with them a poor credit history, which obviously makes a guaranteed fast loan approval without the worry of a credit check highly attractive. The acknowledgement that students are bad credit borrowers by default rather than by their own fault, is reflected in the allowances given with student loans. For example, the period of grace before having to begin repayments, or the interest-only repayments until graduation. Federal Loans In reality, the only feasible option in seeking student loans with no credit check is the federal option. Federal sponsored financial aid for students is a popular source of funding for millions of students every year, and there is a selection available to choose from. Bad credit plays no part in the application assessment process, with the loans specifically designed to help those in need of financial help. The starting point is to submit a Free Application for Federal Student Aid (or FAFSA), from which the federal government will assess which loans the applicant qualifies for. Once the right one is selected, qualification is assured, so guaranteed fast loan approval is a formality. The most common loan programs available are the Stafford and the Perkins programs. These student loans are specifically designed to make going to college affordable to those who are otherwise unable to find the funds to pay for college fees and living expenses. But because of the popularity, and budgetary constraints at the Department of Education, it is important to move fast to be assured of financing. The Online Option While federal loans are the most common option when seeking student loans with no credit checks, there are also similar loan options to be found on the Internet. Online lenders tend to offer highly competitive terms on financing for everything, including college fees. And because most lenders there show no interest in credit scores either, and have a high-speed application processing system, guaranteed fast loan approval is also possible. Where it may fall behind the federal option is in the repayment scheme, with most online lenders expecting repayments to be made from the time the loan is awarded. However, student loan repayments are smaller than those of normal personal loans, increasing every two years to ensure a manageable repayment structure is maintained.
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