Student Loan Consolidation is one of the best ways to introduce stability into your finances, and minimize the worries that are associated with loan repayments after the end of an academic journey. However, it is not easy to get approved for a loan consolidation policy – and you have to look for other options in that case. Read on and know how to maximize your chances of approval.
Have a co-signer
Loan cosigners can be very useful in case you do not have a good credit rating or a FICO score over 600 or preferably 660. When you get a loan cosigner to accompany you, it shows that you have someone present with a high credit rating that will be responsible for dealing with your loan in case you lack the wherewithal to pay the loan back. They give an undertaking in the form of signing the contract that they will stand by their responsibility, and not default on the loan.
If you choose a student private loan consolidation, you can get the chance to remove your co-signer and free him of his liability if you repay the loan amount regularly consecutively from 24 to 28 months. This can be beneficial given the fact that usually parents or relatives are the co-signers.
Compare credit ratings to the credit score
In case you have not looked at your present credit score, it is important to do it immediately before contacting your private student loan consolidation lender. You can always browse the official website of any consumer reporting company to ask for a free online credit report. You can immediately get back your credit score in case you get your credit report on request online or in only 2 weeks.
You have to compare your present credit ratings to the credit score that you obtained from your private student loan earlier. Your existing lender might reduce the interest rates if there has been a steep rise in your credit score. In case you see that he does not want to change the rates, contact other lenders and find out whether they can shift your FICO score to your own account. You may even check whether or not any lender wants to combine all your existing loans and prolong the loan tenure. It can help you to be worry-free about the interest rates, and repay with convenience and comfort. It is one of the benefits of private loan consolidation for students.
Talk to financial experts
If you feel that choosing a loan consolidation is tough, it is a good idea to always hire online financial experts and get advice about the loan consolidation and the problems associated to student loan.
You can use an online loan calculator, the sort of which is freely available on the internet these days, to make the calculations and find out how much you are paying in terms of interest rates and repayments on multiple loans. Write down the figures and discuss them with a financial expert to get suggestions and recommendations about the best consolidation policy that would be appropriate for your situation.