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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 consumer 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 a loan in the future based on your past credit history.
Checking Your Credit
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Obtain a free copy of your credit report annually at annualcreditreport.com.

Review the report carefully to make sure all reported information is correct. Pay particular attention to the number of accounts, total account balances, and the timeliness of payments.
National Consumer Reporting Agencies
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Contact information for the three national consumer reporting agencies

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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