Consolidating student loans bad credit
Bad credit often involves a lack of financial skills or knowledge.
Loan counselors can help educate and guide a person out of damaging debt.
Unfortunately, there are scam artists who take advantage of these situations.
The Federal Trade Commission offers advice about how to choose a counselor and avoid credit scams.
Also keep in mind that a cosigner on your loans will become just as liable for that debt as you are.
You must be diligent to keep up with your payments, otherwise you’ll put them in the tough position of having to take responsibility for student loans.
This is important as it helps you understand your situation in detail.
You may also want to explore Lend Key, which is a site that connects you with local/regional not-for-profit credit unions and community banks.
These institutions also generally offer competitive rates and terms, but are often more flexible in their underwriting criteria.
Peer-to-peer and marketplace platforms connect private lenders with borrowers. You have to join these organizations, but they often offer loans to people with less than stellar credit ratings.
In many cases, peer-to-peer credit score requirements aren’t as strict. If your credit rating is very low, and you’re having difficulty finding a loan, a loan counselor might help.
Also, it might save you time since you won’t be asking for loan consolidation from places that require high credit scores.