At present, bad credit student loans are readily available, even though the market for such products shrunk during the recent credit crunch. With the cost of education becoming higher by the day, you have little choice but to borrow money to pay for college. You can secure a good deal, provided that you follow some simple advice. bad credit installment loans

Improve your credit score before applying for education financing. Conditions for borrowers are now stricter than before, so you will need a score of at least 620 and preferably of 670. Some quick fixes include paying all bills fully and on time and managing your credit card use more effectively. If you spend less than a third of the limit on each card and repay your debt on time every month, you will see a considerable improvement.

Limit the amount you want to borrow as much as you can. This is perhaps the best way to save on bad credit student loans. Federal financing is readily available at much lower rates, so you can readily consider borrowing less from private lenders.

Shop around for bad credit student loans to find the best possible deal. You should definitely get quotes from as many lenders as possible. Then, you should compare the interest rates and the terms and conditions of the offers carefully. Generally, the interest rates for students with good credit scores are between 11% and 12%. That is why a deal with an interest higher than 20% to 22% will definitely be unreasonable to get.

Plan ahead when getting a student loan. A lot of people take bad financial decisions just because they do not plan ahead thinking that they will handle things after they graduate and start repaying their debt. This is definitely a wrong approach.

There are two major aspects to plan. Firstly, you need to decide on the duration of the loan. If you choose to repay it for 10 years, you will have larger monthly installments. If you decide to extend it to 20 or 30 years, the debt will be more affordable to repay, but the overall cost of financing will be higher.

The other factor is the size of your monthly installments. Experts recommend restricting it to 10% of your monthly income. You can readily make the necessary calculations by taking data for the average salary of people who graduate with the same degree as you. In general, your task is to make repayment as affordable as possible.