There are different kinds of interests for a Private Loan, such as LIBOR (represents what is the cost for borrowing money to a lender) or PRIME (represents the offer interest to the most creditworthy customers). Comparing, the LIBOR rate is +2.8% and the PRIME rate is +0.0%. In addition, the rate of interest is based on both credit scores: yours and your cosigner. So that, this credit score must be more than 650 (FICO) and you will be approved for a private loan with better terms. We also recommend you to get a cosigner because of if he or she has a bigger credit score, you will have to pay with a lower interest rate.
Also called Alternative Education Loans, this program helps to increase the amount given by the government and it is offered by private lenders without federal forms, just based on your credit score.
Even when this types of loans are more expensive than those given by the government, also they are cheaper than those given by a credit card. But, if we have to be a comparison for you, we would recommend you to really think twice if you decide to take a Private Loan, then is just up to you to choose what fits best with your economy.
1.2.1 Private Students Loans:
This type of Financial Aid is growing faster than expected, at least more than the Federal Loans. This is a big reason why you should consider comparing all different private loans.
Most important requirements
1.2.2 Private Students Loan Consolidations:
In contrast to FAFSA programs, the Private Students Loans cannot be consolidated, because of they do not have low interests rates as the government loans; even though, you will find many options to complete your repayments.
Besides, they do not compete in price, so that, the benefit is that they obtain a payment each month; however, because of the interest rate is done according to the credit score, you will be able to get a lower rate interest.
Some benefits, according to the Lender
1.2.3 Credit scores:
What does it mean?
How is it use?
How is it affected by Loan Applications?
What is Credit Reporting?
How to improve your Credit Score?
The Customer Service
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