Unknown Items On Your Credit Report Holding You Back From Securing A Loan

As important as a credit score is to consumers in order to qualify for a loan, up to 30% of the American population are not aware of their credit score. For many, this information only becomes useful when they wish to apply for a loan. It may also come as a shock if the financial institution picks up any derogatory information on the credit report. Consumers who have experienced payment issues before, may not be aware that these items are causing their scores to drop. These are some of the sneaky culprits on a credit report.
Credit Report

The Internal Bank Score

This may not show up on all credit reports but does show up on internal reports generated by ChexSystems, TeleCheck, and Early Warning Services. These services track the conduct of checking accounts such as returned items, unauthorized excesses, and even fraud. This could cause problems for consumers who wish to apply for checking accounts and loans, even if they have a clear credit report in other respects. Those who have bad info on their checking accounts should consider keeping the account clear for at least six months before applying for finance again.

Pesky Charge-Offs

Charge-offs are the debts consumers may have forgotten about but still seem to creep up and catch them later on. A charge-off is a loan that went bad with an institution and they’ve subsequently removed it from their books. The problem doesn’t go away from the credit report that soon though. Charge-offs take around seven years to clear off a credit report. There are ways to remove charge-offs that will allow customers to increase their credit scores substantially. One option is to hire a credit repair company to do the intricate work for you, or if you don’t mind doing some extra homework, you can file a credit dispute on your own.

Insurances, Cellular Contracts, and Medical Debt

These are items that few people are aware of that just seem to lurk on credit reports. Insurances and cellular contracts may not be debt, but companies are starting to list the payments on the credit bureaus. It’s important to manage these payments in order to keep the credit bureau clear. Medical bills are also not considered debt until they’re no longer in a current status. Blood work, emergency visits, and other items that may not have been settled by medical insurance may affect the credit rating of customers. Thankfully, new legislation keeps some medical debt off the bureau, but not all. Keep track of all appointments, invoices, and payments to ensure they’re up to date.
It takes time and a hard work to clear up credit reports and sometimes a lot of money. Keeping track of the paperwork is vital to ensure these items are cleared off credit bureau records. It is also important to manage payments effectively and keeping track of every dollar. A detailed budget and expenditure plan certainly helps with this.

How to get Student Loan without Cosigner

Get Student loan withou co-signerEverybody has now big aspirations. In order to make him or her, a valuable asset for the country, government is trying to facilitate and aid those dreams. This fact is the bases of the trend we are witnessing around us. Student loans are becoming more common these days as compared to past. Generally, loans are given to those with a decent credit history, backed by a guarantor or cosigner. For such people, there are many options for loan. The same goes with the students if they are looking for a loan for education. On contrary to this, it is not this easy with students with no credit or co-signer. Along with that, they have very limited options they can look in to.

It is not like that college students with no credit or co-signer to back them can’t get a loan. They surely can get the loan, even though the options are extremely limited. You must undertake a fare amount of research of federal loans for student if you are one of them. Your options will certainly include Stafford and Perkins Loan even if they are not extendable to some other loans. These are the two loans that do not require a credit check to be able to qualify for them.

Filling out an application form to avail the loan is the first step to this process. The form is Free Application for Federal Student Aid, abbreviated as FAFSA. It will initiate and aid your securing a government loan, when qualified.

Stafford Loan is basically small in terms of amount but surely the kick you need to get moving on your path. This loan is meant for truly needy students, so low-income, credit score and absence of co-signer are not the issues. Do not forget to apply for it.

Perkins Loan is for the students who are in great need of the money to accomplish their studies. With 5% of interest rate on loan, it also gives the facility of longer payback time and a bigger amount than that of Stafford Loan. So, when you apply for it, you know that you have longer time to repay student loan debt.

 You have fewer things to worry if you are a non-traditional student as you have many more option in your hands. Besides both of the above loans you can still avail many scholarships or other kind of grants to further your studies and take it to the next level. Just don’t forget to regularly check with your school or college counsellors as well as website for information on them. You need not worry about credit reports for that, even their absence, to peruse educating yourself n the field that matter most to you!