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Importance of Good Credit

 
 

When you apply for a private student loan, the lending institution or creditor will evaluate your credit history. This may involve requesting a copy of your credit report and/or your credit score from an authorized reporting agency.

Lenders use this information to determine whether they should extend credit to you based on your "willingness to repay the loan," as demonstrated by your past credit performance.
Credit Reports, Credit Scoring, and Credit Criteria
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Your credit report is a snapshot of your credit history.

Credit scoring is a quick and consistent method of determining the likelihood that you will repay your loans based on your past credit history.
Checking Your Credit
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Obtain a free copy of your credit report annually.

Review the report carefully, paying particular attention to the number of accounts, total account balances, and the timeliness of payments.
National Credit Reporting Agencies
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Contact information for the three national credit bureaus

Cleaning Up Your Credit Record
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Have bad Credit? Steps you can take to improve your credit record.

Additional Resources
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For more information on credit, try our WiseBorrower Credit Series
offering interactive, self-guided tutorials covering a variety of credit-related topics.
 
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