DOES BORROWING AN EDUCATION LOAN AFFECT MY
CREDIT SCORE?
Education loans are nothing but personal loans categorized for
students, the funds received from which would be used for their education.
Education loans are granted for students with the best interest rates and
several other benefitting features at Buddy
Loan.
The eligibility criteria considered at Buddy Loan are readily available for
students who want to pursue higher education, or those whose parents strive to
close admissions for their child is the right school.
Buddy Loan
regards education to be an essential aspect of every person’s life as education
to not only gain knowledge but also to gain perspective. Buddy loans also
ensure instant loans for students. Further, an applicant also has the choice of
applying for student loans online; for all that is needed is an internet
connection.
Choosing buddy loan for applying for your student loan has
several benefits which include:
·
Loan approval rates are high.
·
There is easy and minimal documentation that is
required.
·
Quick sanction of loan.
·
The loan disbursal amount is the borrower’s choice.
·
There are no hidden charges.
·
The option of tenure for repayment ranges from
6 months to 5 years.
·
Loans are available at best interest rates
·
The platform of buddy loan is secure and
easy-to-use.
A person’s credit score is generally affected by factors
such as payment history, the age of credit, debt diversity, and debt levels. Similarly,
education loans or personal loans for students will also affect the borrower’s
credit score like any other loans when there is a failure of payment of either
interest amount or the principal amount within the tenure specified in the
contract of loan.
However, the advantage of repaying an education loan is
that the borrower can begin to pay the installments along with interest amount
when he/she completes education and secures employment.
The payment history of a person supposedly directly affects
about 35% of the credit score. On the one hand, late payments can reduce your
credit scores, but on the other, if the payments and installments for the
borrower’s student loan are made on time, then the credit score of the borrower
enhances.
However, a single late payment may or may not necessarily
affect your credit scores. Multiple late payments will impact your credit score
negatively. To prevent this from happening, ensure that you make payments of
interest amount and installments of principal amount on time. In case one
payment has been missed, then make it within 30 days to reduce the effect of
such non-payment on your loan.
