Can Co-Signing for Student Loans Affect My Credit?

Now a days besides credit cards, it seems one of the biggest thing affecting people’s credit are student loans. Education is important and without grants or scholarships, it seems the only other option is student loans as majority of students are unable to pay school off as they go. Because many young college students at the age of 17 or 18 have no established credit, parents are very likely to co-sign student loans for their children as they would more likely be approved as well as getting a lower interest rates. Although our children’s education is important, it is also important to know just how much co-signing for student can affect ones credit score.

Although most federal student loans don’t require a co-signer there are a lot of technical schools/colleges out there whom do private student loans. These types of loans usually require a co-signer as young students normally don’t have the credit score needed to qualify for the loan themselves. Anyone can be a co-signer; a parent, sibling, friend, so long as the person co-signing has the requirements to be approved for the student loan. Ultimately the co-signer is just as responsible for the debt.

Having student loans on your credit report can add to your total debt, possibly lowering your credit score. This can be startling especially if you were planning on applying for a loan of your own whether it be a personal loan, auto loan, or mortgage loan. Also once payments are due for the student loan, any late payment will affect the co-signer as well immediately damaging the credit score. After so many missed payments the student loans can even be sent to collections. Late payments and collection account can stay on your credit report for up to 7 years, that’s a long time.

If you’re not getting approved on your own for your student loans, have late payments of any sort, or/and have collection accounts on your credit report come see us. WE CAN HELP YOU! We can help you establish the credit you need to be more likely to qualify for your student loans without the need of a co-signer perhaps with even lower interest rates which makes a HUGE difference when it comes to student loans. If you children’s student loans have affected your credit negatively, we can help you too! We are licensed and bonded to work with Credit Repair, Debt Settlement, Student Loan Consolidation, and Trade Lines all under ONE roof! Whatever the problem is, we have a solution for you.

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!

*Individual results may vary. Please call for more details and to discuss your own individual situation.

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