Do you have questions about your credit history and how it may affect student loans? Here are the answers to some of the most common questions.
What if I don't have a credit history? Can I still get a student loan?
Yes, you can get federal student loans. Federal loans for students do not require a credit check or a cosigner.
If you want to get a private student loan, you'll likely benefit from having a creditworthy cosigner. A creditworthy cosigner will have experience with managing credit that may improve your chances for approval and help you qualify for a lower interest rate.
I don't have a credit history but my parents made me an authorized user on a credit card. Will I be able to get a student loan in my own name?
Yes. Nearly everyone can get a federal student loan.
Do student loan payments show up on my credit report?
Yes. You'll see your student loan amounts and payment history on your credit report. If you make your payments on time, your credit report will reflect that. This can help you build a credit history. If your payments are deferred while you’re enrolled in school, your credit report will show that you have a student loan but that you’re not yet due for payments.
Do student loans show up on my cosigner's credit report?
Yes. Student loan payments show up equally on both you and your cosigner's credit reports. Paying on time helps both of your credit ratings.
Can I still get a student loan if I owe a lot on credit cards and have had previous student loans?
Yes. Federal student loans do not take into account your credit rating. But if you have ever defaulted on a federal student loan, you won't be able to get another one until you make enough payments on your old student loan account to make it current.
Private student loans take your other debt and credit rating into account. This is where applying with a creditworthy cosigner can improve your chance of approval and may help you qualify for a better rate.