A great many people out there who are trapped under a seemingly inescapable load of student loan debt have the same question: what are my loan options now?
The Burden of Student LoansBe it a mortgage, a car loan, or a personal loan, carrying student debt can hurt you financially in two different ways:
1 – That debt impacts your credit score and history. This makes lenders much more wary of you. Unless you have been doing an exemplary job in paying those loans down over the last few years, the debt can easily prevent you from being approved.
2 – Paying off this debt every month makes it much harder, if not impossible, to save any money up. If you can’t save for a down payment, or to pay your loans off, how can you ever qualify for another loan?
It is by no means impossible to borrow money while paying off your student loans, but it does make things much more difficult!
What Options Are There?The best option for long term financial health is to completely pay off all existing debt before acquiring new debt. However, it is not always that easy, is it?
If you have desperate need for a loan, without having the time to wait, your fastest option will be an online installment loan.
These loans usually have no credit score requirement. If you are employed, have a steady income and a bank account of some kind, you have what you need to qualify.
Installment lenders charge higher interest rates than banks, but also have a lower approval threshold. In other words, the qualifications for loan approval are much higher than with conventional lenders.
If your back is against the wall, an installment loan can be what you need.