Financing College With Bad Credit (4 Loan & Grant Options)

Financing College With Bad Credit (4 Loan & Grant Options)
GUIDE

Advertiser Disclosure

Eric Bank
By: Eric Bank
Posted: March 14, 2016
BadCredit.org's popular "How-To" series is for those who seek to improve, rebuild or better understand their subprime credit rating.

Whether you’re an adult looking to go back to school or a parent funding your children’s education, it’s important to know that you have options, even if your credit is bad.

You can finance large expenses like tuition and housing with student or personal loans, as well as with money from scholarships and grants. Smaller expenses, like books and uniforms, can be handled by a credit card designed for consumers with poor credit. Let’s take a closer look at the resources at your disposal.

1. Student Loans Lessen the Financial Burden of Education

There are two main types of federal student loans, and both can be accessed by filling out a Free Application for Federal Student Aid (FAFSA):

Stafford Federal Loans

These college loans are intended for undergraduate and graduate students enrolled at least half time in an eligible institution. Subsidized Stafford Loans are based on financial need, and the government pays for accrued interest during school attendance.

Unsubsidized Stafford Loans are not based on financial need and the government doesn’t pay the accrued interest. Both are to be repaid in 10 to 25 years, and provide a six-month grace period after completing your studies before repayment begins.

Perkins Loans

These college loans serve the same student base as Stafford Loans, but the lender is the college or university rather than the federal government (which nevertheless guarantees these loans). These loans have specified maximum awards, provide a nine-month grace period and must generally be repaid within 10 years. Perkins Loans are rarer and harder to get than are Stafford Loans.

You can also apply for a private student loan from a bank, credit union, employer, or other source.

2. PersonalLoans.com Has Multiple Loan Offers

Another way to pay college costs is through a personal loan, available from well-regarded websites like PersonalLoans.com. The benefits of this website include:

  • Quick online application for unsecured loans of $1,000 to $35,000, even if you have bad credit
  • Personal installment loans, peer-to-peer loans, and bank loans available
  • Complete flexibility on how you use the loan proceeds
  • Low interest rates (as low as 6 percent) and an established repayment schedule ranging from 6 to 72 months

Think of PersonalLoans.com as your one-stop-shopping website for any kind of personal loan you need.

3. Credit Cards Give You a Chance to Raise Your Credit Score

Credit cards are a great way to finance the books, equipment, supplies, and other incidental costs that occur when attending college. Credit cards for college students that are particularly well-suited for folks with a poor credit history are available from Credit One and First PREMIER.

  • Checking account and $10,000 gross annual income required
  • Unlike some other issuers, good credit is not required
  • All credit types welcome to apply
  • Reports to the major Consumer Reporting Agencies
  • Application response in 30 seconds
  • A credit card offer for those currently building credit history
  • Click here for official site, terms, and details.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes See issuer website Yes 9.5/10
  • Checking account required
  • Fast and easy application process; response provided in seconds
  • A genuine VISA card accepted by merchants nationwide across the USA and online
  • Manageable monthly payments
  • If approved, simply pay a processing fee to open your account and access your available credit
  • Reports monthly to all three major credit bureaus
  • Click here for official site, terms, and details.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 Minutes 29.99% Yes 8.5/10
  • Checking account required
  • A manageable credit limit can help you stay in control
  • This is a credit card - not a debit or prepaid card
  • Track your progress. Your FICO Score is provided for free on your monthly billing statement.
  • Make your payments on time each month, and keep your balance low relative to the credit limit, for positive marks on your credit report.
  • Click here for official site, terms, and details.
★★★★★

4.6

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes See issuer website Yes 9.5/10
  • Checking account required
  • Monthly reporting to the major Consumer Reporting Agencies
  • Response provided in 60 seconds or less
  • No security deposit required
  • Apply today, and if approved, pay a Processing Fee and you can access your available credit (additional fees and charges apply)
  • Click here for official site, terms, and details.
★★★★★

4.6

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes See issuer website Yes 9.5/10
  • Up to $5,000 spending limit in less than 60 seconds
  • Shop from over 100,000 brand name products such as Apple, Samsung, Sony, Gucci, Prada and much more with low easy payments.
  • Less than perfect credit accepted. Approval is quick and easy
  • Must be 18 years or older, have a valid checking account and a verifiable source of income
  • Up to 12 months same as cash
  • 50% Early Payoff discount
  • No hidden fees
  • Return at any time
  • Click here for official site, terms, and details.
★★★★★

4.5

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
8 Minutes See website No New Offer

Even if you have bad credit, you can establish a Credit One credit line of $300 to $500 dollars. Credit One and First PREMIER cards offer several other benefits, including cashback rewards, the ability to personalize the card’s design, automatic reviews to increase your credit line, and free credit score tracking. These are a few of the best credit cards for college students with poor credit.

You can use a credit card to raise your credit score, because these issuers report your card activity to the three credit bureaus.

4. Grants & Scholarships Based on Merit or Financial Need

Scholarships and grants are available to many students based on merit or financial need. However, one of the biggest problems in getting a scholarship or grant is to find out what is available and appropriate for your circumstances.

Websites such as Fastweb and Scholarships.com cut through all the confusion by providing valuable information about scholarship and grant opportunities, college comparisons, and other forms of financial aid, all based on a short profile you submit to the website. These websites are unusually robust in offering a wealth of information and search facilities – if the financial aid is out there, these two websites will find it.

Final Thoughts

There are a variety of solutions to paying for college despite bad credit. You can apply for federal or private student loans. Lenders like PersonalLoans.com provide access to loans even when your credit is bad. So do some credit cards, such as Credit One. You can also use websites like Fastweb.com and Scholarships.com to secure grants and scholarships. Even if you have bad credit, you have choices to fund your education.