bad credit student loans in the USA

WOF article on Bad Credit Student Loans

For students who have poor credit ratings, there are a few options that need to be considered. First off, you can try the government funding loans such the Federal Stafford loan and the Federal Perkins loan, but there is more to it than that.

You need to prepare yourself for all possible lenders if you cannot get a loan via a government program. In my research online, I have found that the best thing a future student (with bad credit) can do in order to get a loan for school are as follows. I have given the following advice to others with great result. Follow these steps before you apply for your student loan. I assure you, it WILL increase your chances of success.

A. Collect all paper work, bills, statements, receipts, and creditor documents you can find. Keep track of your credit lines.

B. Track all debts on paper or on your computer.

C. Only have credit cards you need. Don’t "collect them". Some banks see the credit you have as an existing loan.

D. Set your credit limit according to your ability to manage payments. Just because a creditor gives you a massive credit line, does not mean you can afford to use it all.

E. Never miss a payment and ALWAYS place your bills in one place so you don't miss paying them. I put them on a desk in my office. This is critical because you could damage your credit rating from simply mis-placing an outstanding bill.

F. Pay back ALL your debt by consolidating your loans into one payment.

G. Try to get approved for a low interest line of credit and pay off all high interest debts.
Stop spending anything on wants and only spend on needs, at least until your debts are cleared up.

H. If you are spending more each month than you net in income STOP now.

I. Find out what your FICO score is so you know where you stand as far as your credit rating goes. Use this as a barometer as you work towards a good credit rating. Check out your credit score by going to a site like www.myfico.com, and get yourself a credit report.

J. Make payments on bills as soon as possible and don't let them ever build up.
Write as few cheques as possible becuase they can be forgotten and may cause a bounced cheque.

K. Liquidate (sell) anything you can to pay off as much debt as possible.

L. Do not get cash advances or "live" off your credit card(s). If you are that stage, you are likely in serious trouble financially. Start using the steps above to remedy this situation.

M. Write down all the expenses you have on a monthly basis and decide what you really need. If you write down some expenses that you could survive without, get rid of them. Sell the car - take the bus, etc. etc.

N. GET SERIOUS.....everyday you wake up think of fun and entertaining things you can do that DON'T cost money. You will be amazed at how quickly you will rebound.
Keep positive and STICK to your budget and program. Don't be afraid to get help from a local financial adviser. I can't stress this enough. People don't seem to realize that there are professionals who give guidance. Even if that professional help costs you some money, it's the best money you could spend.

Now, for a last resort, you can try some of the other bad credit lenders available online and offline. Be careful to make sure you read all the small print and don't get caught up in any ridiculous terms and high interest rates. When you are finally finished your education, be sure to keep your financial nose clean. All the very best to you in your future endeavors and your educational quests.