New York, NY (PRWEB) September 28, 2013
Finance Acceleration composed a series of methods to assist consumers in overcoming bad credit to obtain loans, better interest rates on borrowed money, and to assist in the securing of a rental unit. Many consumers are unaware of their credit score, or are unaware of how this score affects them. This is exemplified in Forbes’ September 26th article, entitled “The Unspoken Cause of the Student Loan Crisis”. Forbes’ contributor, Hardeep Walia, identified this cause, citing poor credit and payback behavior.
Hardeep Walia’s Forbes article, regarding the student loan crisis, immediately identifies the cause: student loans do not undergo the same heavy background checks that standard loans do, resulting in a large series of borrowers with poor repayment and money management habits. Students engaging in programs boasting higher-paying jobs with high grades are evaluated for loans as though they are identical to students enrolled in arts programs that boast low job rates, and low income levels. Walia identified this as a flaw in the student loan system, as many students simply cannot afford to pay back their loans due to poor job markets after graduation. Walia encouraged students to pursue their passions, but suggested that policies regarding student loan lending should be changed, and students with low-paying jobs should not be able to enter into high-cost loans.
Many students are facing low credit scores and high repayment quantities after graduation. Though this may not prove an immediate problem for students graduating into well-paying jobs, for students whose after-college careers are put on hold or pay a measly starting sum, this presents numerous problems: those seeking to buy a home or car may find it difficult to find a lender at all, or may only be able to secure loans with exorbitant interest rates. Others may find securing an apartment difficult, given their debt rates (and sky-high loan payments) each month.
Finance Acceleration offers its three tips in overcoming bad credit:
1. Consider moving back in with parents or sharing an apartment with friends to cut costs and begin tackling student loans immediately. Though this may be an uncomfortable or unideal living situation, it may prove beneficial in the long run.
2. Lower costs by using public transportation or riding a bike. If possible, cut out the need for a vehicle loan through sharing a car with a friend or family member, using public transportation, or riding a bike.
3. If a loan is absolutely necessary, consider loaning money from a peer-to-peer lending group. These groups are designed to offer bad credit loans for individuals struggling with a low credit score.
Hardeep Walia is a regular contributor to Forbes, focusing his articles on world finances. He is also knowledgeable about investing, and uses his expertise to assist his readers in making wise decisions regarding money and investing.
Following a Forbes article identifying a flaw in the student loan lending system, Finance Acceleration offered three tips to work to overcome a bad credit score. These tips focus on paying off debts through cutting costs, thereby raising credit scores and eliminating the potential for high interest rates or outright loan refusal. For those who cannot go without a loan, however, there are options; Finance Acceleration steered readers toward a site discussing bad credit loans and how to find them. Above all, Finance Acceleration encouraged readers to eliminate debt, and work toward raising credit scores before seeking out new sources of increasing debt. To learn more about good and bad credit loans, FinanceAcceleration.com recommends readers peruse this page on CreditLoan.com.
FinanceAcceleration.com is a website dedicated to assisting individuals in achieving financial success through financial counsel and news articles.