When it comes to your education, you may need to take out student loans. While most people have to use some type of financial assistance. You may have heard of unsecured loans which are not based on your having any collateral. This is often needed for student loans, especially if you don’t have good or any credit history. How exactly can you qualify for them? These are the was to get an unsecured student loan.
Check with Your Bank or Credit Union
One type of unsecured loan is a signature loan. This is the most basic option. As its name suggests, you secure it with nothing but your signature. Banks and credit unions offer these types of loans. What makes them ideal is that they usually have the lowest interest rates. Check with your bank to determine if they offer them and they may have better rates for education-based loans. With this type of loan, you’ll pay it back in installments with a monthly payment. To get this type of loan, you’ll simply apply for it.
2. Consider a Peer-to-Peer Loan
This is a newer type of funding that is a type of unsecured loan. You’ll be able to borrow from individuals instead of using a traditional lender like a bank. Several websites allow you to post your request online. Complete a description of the funding that you need as well as other pertinent information. People will then have the opportunity to fund your loan. These loans typically come with a fixed rate installment payment and have relatively low interest rates as well. To get this type of loan, visit a P2P lending site.
3. Borrow From Your School
Your school’s financial aid office is a great option to get an unsecured loan. These types of loans are specifically designed for students and they have features that you might not find elsewhere. Flexible repayment options, grace periods, and even interest subsidies make these a great option. With some of these loans, you don’t even have to have good credit. Chances are, your best option to get one of these loans is to visit or contact your school’s financial aid office. The people that work there can guide to you the right type of loan for your situation.
4. Credit Card Loans
If you think about having a credit card, this is a type of loan that’s also unsecured. Credit cards are a popular option for loans since you can borrow money instantly when you’re approved. Unfortunately, many of them come with a high interest rate. It’s easy to get in trouble with cards so you may want to avoid this as your primary option. However, if you’re struggling to find a loan that’s right for you, look for a credit card that offers zero percent or low percentage rate for the best option.
5. Get a Line of Credit
This is another type of unsecured loan but instead of taking it all at once, a bank will approve you for a certain amount of money that you can use. You’ll then pay it back as needed. For example, you could have a $15K line of credit and take out $5k to use for books or tuition payments. While you’re making payments on that loan, you’ll still have an additional $10K available. As you pay down the balance, the line of credit will become available for you to use again. To get this type of loan, simply apply at your bank or credit union.
To determine which of these loans is the best choice for you, you’ll want to consider how much money you need, your current credit score, and when you’ll be able to make payments. All of these factors will guide you to the best unsecured student loan option.