Frequently Asked Questions - p. 2
Student Loans Q. How do I find the best student loan?A. First, take your time. Many people tend to rush through the student loan process. Before you consider a student loan for your college, think first about how much of a loan you really need. Then, just borrow what is enough for your needs.
Q. What types of student loans should I consider?A. Some of the more common types of student loans include:
Federal Perkins Loans
Federal Subsidized Stafford or Direct Loans
Federal Unsubsidized Stafford or Direct Loans
Federal PLUS Loans
Alternative or Private Loans
A. It is useful to inquire about the impact of your credit status, how you will manage your student loans while in school, and even the means for eventual repayment of your student loans.
Be sure to ask questions about these important issues.
Q. Can I get a student loan payment deferment?A. A student loan deferment means that you will not have to repay the amount you have borrowed immediately; there is usually some allowance made to defer paying back the loan for up to three years. Circumstances such as not having a job after completing your studies or unforeseen financial troubles can be good reasons to apply for a student loan deferment.
A grace period is also a feature of some types of student loans, although not all loan providers will allow this option. The grace period means that you begin to repay the loan once your studies are concluded or if you do not complete them at all. The period a lender gives you for a grace period may differ significantly.
Q. Can I receive an extended payment option?A. This will mean that you can take more time to pay back the loan to the lender. As an example, if you have a loan that is more than $30,000, then you could choose to pay this back over a period of 25 years. The extension period might differ between providers and some might not offer this choice at all.
A graduated repayment scheme is another education loan deferment option. This type of scheme allows you to start paying off a small amount and gradually increase the amount of the repayments you are making.
Debt Consolidation Q. What is Debt Consolidation?
A. Debt consolidation is a solution to constructively manage debt in a positive manner. Right now, most of the payments you make each month are probably being used to pay down interest on credit cards and store cards. You might even be routinely paying late fees, banking fees, and related transaction expenses. Your money disappears but your debt does not. Essentially, debt consolidation serves to merge all of your various sources of debt into one single debt - and a single payment.
Q. What are the Benefits of Debt Consolidation?A. There are definite benefits to debt consolidation. Your multiple payments will be consolidated into a single monthly payment. In the process, the high interest charges you are paying can be reduced or eliminated, along with late charges and other fees. Best of all, your repayment plan allows you to look forward to a better financial status once again, and you can eventually enjoy the experience of debt-free living.
Q. What Types of Debts Qualify for Consolidation?A. Many different types of debts qualify for consolidation, including credit card debt, store card debt, personal loan debt, utility bills, and more.
Q. What About Bad Credit?A. You are not alone. Debt consolidation is available to people with bad credit. In fact, it's designed to provide debt assistance to people with poor credit. Even if you have unpaid defaults, payment arrears, or have been rejected by a lender, you can still qualify for consolidation.
Q. How Can I Begin the Process of Debt Consolidation?A. It's simple. You can begin by finding an online debt consolidation company that specializes in helping consumers with debt assistance or bad credit loans. After completing a confidential application, you will be contacted by a finance professional who will work with you to develop a reduced payment plan. They will also work with your creditors to reduce your interest rates and to eliminate penalties. When you find yourself immersed in debt, it's important to remember that there is hope. Many people have a difficult time facing their financial situations, and choose not to act. By opting for debt consolidation, you can make a plan, regain hope, and be well on your way to living debt-free.
Credit Cards Q. Can I apply for a credit card?
A. If you're 18 years of age or older (the age limit might be lower in some states) and are a U.S. citizen, you have the legal right to apply for a credit card with any U.S. bank or financial institution.
Q. Do I have to have a bank account to get a credit card?A. In most cases, credit card companies won't consider issuing credit to someone who doesn't have at least one bank account in their own name.
Q. Is it necessary to have a bank account with the bank that issues the credit card?A. Not in most cases. As long as the credit card issuer can determine your credit worthiness, it doesn't matter where your bank account is. There is one exception. If you apply for a secured credit card, you must keep a "security deposit" of a specific amount in the institution chosen by the credit card issuer.
Q. Can I apply for more than one credit card at a time?A. You can apply for as many credit cards as you want, but you should be aware that multiple credit card applications can affect your credit score negatively. It is usually best to apply for one credit card.
Q. What about bad credit?A. There are lenders who specialize in providing credit cards for those with bad credit. Commonly known as secured credit cards, you might need to deposit funds as collateral prior to receiving the card. But there are credit cards available to fit situation.
