Let’s be honest, most of us are a little skeptical about borrowing money. We don’t want to get ourselves into a messy financial situation. However, the information on the internet is usually generic and unhelpful. At StuCred we believe it is our responsibility to give you as much information as you require to make the right choice for yourself.
We’ve compiled the list of questions you should be able to answer in order to borrow responsibly.
1. How Much Can You Realistically Payback Within the Period?
First thing’s first, as a college student your resources are likely limited. Whether you support yourself with help from your parents, a part-time job or both, being realistic about your financial situation is extremely important. Knowing how much money you’ll have in your pocket to be able to repay at the end of the time period is crucial. Borrowing in order to repay another loan will just put you in a cycle that’s really hard to break. So borrow only as much as your wallet will allow.
2. What is the Amount You’ll Receive and the Amount to Be Paid Back?
Most companies are upfront about the service charges and interest rates. Yet, when you borrow there’s a chance you’ve looked only at the principal/ loan amount and not those charges. For example, normally the amount you’ll receive is the principal amount or the loan amount. While you are expected to pay back loan amount + interest rate + service charge. At StuCred, the math is simple. You don’t have to pay any interest! Just remember to keep track of the amount payable at the end of the period along with the date and you’re good to go!
3. How Will a Missed Payment Affect Your Credit Score?
This is the most important one of all- your credit score. A credit score isn’t like a phone you trade in for a new one because it’s broken. Think of it as a SIM card, even when you change phones, your sim follows you. The catch? You can never reset your credit score. From the moment you set up a bank account and use credit services in any form, you’re building your credit score. Although one missed payment doesn’t sound like much, it can have a detrimental impact throughout your life. Check out our Ultimate Credit Score Guide for more information.
4. Anything You Want to Know, But Can’t Find on Their Website, Pamphlet, Etc.
Need more information before you borrow? Perhaps a few first-timer doubts you’d rather get cleared now than after you’ve borrowed? We would like nothing better than to help you out. The best way to do this is to get in touch with the company’s customer service.
For StuCred’s customer care click here.
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Tags- Everything you need to know about student loans, Everything You Need to Know Before You Borrow, Everything you need to know about student loan interest rates, Everything you need to know about student loans for college