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The Best Student Loans with Bad Credit for 2013 & 2014

College life is a hard slog these days as students are finding that the cost of living is steadily increasing along with education fees and costs. Student loans therefore are a very important resource for students to get through their degree. Lets take a look at the best student loans for those with bad credit in 2013 and 2014.

Bad Credit Does Not Mean No Chance

The best student loans for those with bad credit in 2013 and 2014 can be found in local credit unions and through leading lenders such as Tesco, Halifax, Northern Rock and Virgin Loans. Interest rates vary greatly but as a student you can expect to pay between 2% and 7% interest which works out at extremely cheap money. Credit Unions typically offer the best interest rates as they aim to help their members out rather than focusing solely on profit maximisation a la the banks.

While having a bad credit rating in the UK should not affect your chances of securing a low interest student loan, the key thing here to remember is that you will now need to focus on improving that credit rating into the future. A good credit rating becomes especially important as soon as you graduate and need money to get your career and home life moving in the right direction.

All is not lost though and if you plan on improving yur credit rating from today on you will be fine. Paying off credit card bills and paying loan interest repayments on time will see your credit rating shoot up in no time. Most lenders will want you, as a student, to apply for a loan with your parents and then use their assets as security against your loan fee. This is standard and ensures that the banks see your loan as one that will be paid back in full in the future.

And If Parents Have Bad Credit?

If your parent have a bad credit rating then things can get a whole lot trickier. For the best student loans for those with bad credit for 2013 and 2014 check out the Student Loans Company at www.slc.co.uk. Here you can get information on loan packages, interest rates and options for those of you with bad credit.

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