Applying for Student Loans Can Lower Your Credit Score
Monday July 28, 2008
The New York Times ran an excellent article over the weekend about the Danger of Shopping for Student Loans. If you plan on shopping for a private student loan, it is essential that you read this story.
The article discusses the impact that applying for different loans has on your credit score and the interest rate you will eventually pay. Most loan applicant's don't realize there is a serious inequity that exists in the industry--when people apply for car loans and home loans, comparison shopping has no affect on an applicant's credit score. But when people apply for higher education loans, there is a negative impact on credit scores.
Read the article to learn what you can do to offset this and to find out if change is on the horizon.
The article discusses the impact that applying for different loans has on your credit score and the interest rate you will eventually pay. Most loan applicant's don't realize there is a serious inequity that exists in the industry--when people apply for car loans and home loans, comparison shopping has no affect on an applicant's credit score. But when people apply for higher education loans, there is a negative impact on credit scores.
Read the article to learn what you can do to offset this and to find out if change is on the horizon.
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