Having No Credit History - 1134 Words

Having no credit history is almost as bad as having a poor credit history (almost). At least if you have a poor credit rating, then creditors have an idea of just how unreliable you are, but if you have no credit rating, they know nothing about you. You could be the world’s biggest flake and debt scammer. In most cases, students have no credit history, so why bother running a credit check on them when they apply for a student loan? If you are overly worried about your lack of a credit history and you are worried about credit checks when you apply for a student loan†¦then don’t worry so much. You should protect your credit rating at all costs, even if it means staying away from debt all together. Nevertheless, many students do not need a good credit rating to get a student loan. H3 No Credit Check Federal Loans There are federal grants, there are federal scholarships, there are private scholarships, private loans, and the U.S. Federal Government program called â€Å"Direct Student Loans.† For a federal loan, you do not need a good credit rating because the money comes directly from the US taxpayer. H3 Are Federal Student Loans Good Or Bad For US Tax Payers? In theory, they are a fantastic idea. In theory, a student gets a loan, the student graduates, gets a great job, and pays the loan back with interest. In that scenario, everybody wins. The student gets a qualification and a good job, and the taxpayers see a return on their investment through the interest that the studentShow MoreRelatedThe Concept Of Credit And Credit910 Words   |  4 PagesI. The concept of credit A. What is credit? 1. According to Campbell Harvey, credit generally refers to the ability of a person or organization to borrow money, as well as the arrangements that are made for repaying the loan and the terms of the repayment schedule. A credit is contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to the borrowing capacity of an individualRead MoreEssay about Credit Cards: A Blessing and A Curse1664 Words   |  7 Pagesare all credit cards, the easy, fast way to pay for purchases when you don’t have cash, the store doesn’t accept checks, you would rather pay at a later date, or a variety of other reasons. Although there are many positive reasons to have a credit card, carrying this small plastic card can also cause many problems if one isn’t prudent and logical when making purchases. When deciding whether to sign up for a credit card or not, one mus t consider the advantages and disadvantages of having one; it canRead MoreAdvantages And Disadvantages Of Credit Card1055 Words   |  5 PagesHaving a credit card has many advantages and disadvantages to them. Some of the advantages might outweigh the disadvantages, or the disadvantages might outweigh the advantages. It’s all about looking out for the hidden fees or charges that some credit card companies that will do that for people. Some advantages of a credit card are: Conveniences, Build positive credit history, instant cash, and also purchase protection. A few disadvantages are Overuse, Paperwork, and deepening people s debt. CreditRead MoreImportance of Credit1298 Words   |  6 PagesThe Importance of Good Credit Have you ever been turned down for a loan or an apartment lease and wondered why? It could be due to your credit history. Let’s face it–our credit says a lot about who we are. It is our financial report card, and can affect many aspects of our lives. Professional credit counselors at ClearPoint Credit Counseling Solutions agree that having a good credit history is imperative to leading a financially fit life. What is Credit? Credit is defined as a contractual agreementRead MoreFair Credit Reporting Act And Credit History1467 Words   |  6 PagesFair Credit Reporting Act/Credit History The Fair Credit Reporting Act was established in 1970. This act is in accordance on how a credit agency reports credit information. The Fair Credit Reporting Act serves to protect the privacy and integrity of clients. It allows individuals to adjust any inaccurate information in a credit report and provides a solution if a credit agency violates your rights. According to the Privacy Rights Clearinghouse (2014), â€Å"anyone with a legitimate business needRead MoreCredit Card Is A Problem For College Students1733 Words   |  7 PagesCredit card is a major problem for college students in the US because it can easily get out of control. When a student gets himself into trouble with a credit card because of huge debts it becomes harder to pay off all the amount of money you owe to the bank. For example if someone get $5,000 of debts and the credit card carry an average rate of 18% percent and this person only makes the monthly minimum payment of $100, it would take 8 years and cos t nearly $10,000 to pay the card off. Many studentsRead MoreCredit History : A Record Of A Borrower s Responsible Repayment Of Debts921 Words   |  4 PagesCredit history is a record of a borrower s responsible repayment of debts. When an American customer fills out an application for credit from a bank, credit card company, or a store, there information is forwarded to a credit bureau. These organizations match the name, address, and other identifying information on the credit applicant with information found in the files of the credit bureaus. The gathered records are then used by lenders to determine an individual s credit worthiness—that is—determiningRead MoreEssay on Teaching Our Children to Make Good Financial Choices1709 Words   |  7 Pagestire swing in the front yard, front porch swing, and a dog bouncing about (Calder, 1999, p. 3). So what does it take to acquire this dream one may ask. The answer may seem simple, but rather is the product of years of credit and debit management, defined by the ever illusive credit score and intertwined with financial success, and hard work. Fewer than half of Americans, 44%, actually believe they have attained the American dream, another 31% believe they will acquire it in their lifetime, andRead MoreStudent Loan Programs 1116 Words   |  5 Pagescollege and after completing their academic careers. Almost seventy percent of college students nationwide take out loans to help finance their education. Like any other loan, student loans must be paid off in a timely manner to avoid hurting personal credit for future investments. The government has various student loan programs to assist students with not only paying for college, but also with paying off these loans after college. The most common type of student loan is a Stafford loan. These areRead MoreThe Importance Of Build Company Credit706 Words   |  3 PagesBuild company credit Building company credit means that your company acquires chances you never thought you would. You can get brand-new equipment, bid on buildings, and cover the company payroll, even when times are a bit lean. This is especially helpful in seasonal companies, where you can go for months with solely minimal sales. Given this, you should really tackle developing your business credit. Improve and maintain your scores and you will have these possibilities. Do not, and either you do