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Are private credit lenders a good option for students?

I have some financial issues and don’t know who to ask for help. As you all should know, colleges are expensive right now. Many of my friends are applying for various kinds of loans and credits. However, nothing is as simple as it seems. Bad credit history and even the lack of it is a common milestone that not all of us can overcome.

I’ve heard that the best credit for students is provided by the private credit lenders. The important question is whether they can be trusted or not. Some of them even promise student cashback. Is this a good choice?

Dana Keller

in Student Loans

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Ramon Kelly on January 31, 2018

I’m sorry to hear that you have financial problems; I hope the situation gets better in the future for you. What I can do right now – give you some advice on the matter. I, myself, have no experience concerning a private credit lender of any kind. I guess I’ve just been lucky. However, I have many friends who share their credit stories with me. And I certainly can tell you not to be afraid of the
private loan lenders.

Right now, we have a kind of a loan crisis due to the constantly increasing tuition prices. So, there are many companies who try to use the situation for the mutual benefit of both sides. Most of them offer easy ways to refinance loans at lower rates or give out loans at better rates initially. There are many companies that reduce the burden of college students. I cannot say that all of them provide the best credits for students, but just the existence of alternative sources is reassuring.

I would say that you have to study the company you choose thoroughly before you decide to have any business with it. There are a few leaders on the market that can be trusted. Others have to be checked. However, if you find no negative cases linked to the lender, you can certainly ask for their help.

As for student cashbacks, the option is quite useful. Not all credit cards offer you such a great opportunity to have some of your money back. One the most popular choices is Discover it. I know many people who use these cards and are quite happy with how they work. The company helps you to build a good credit history, learn financial basics, while providing you with some pleasant rewards for your cooperation. Though Discover it gives only 1% of cashback on the regular purchases, there are great offers for gas stations and restaurants bills. There are two kinds of credit cards by Discover it – the first one gives you 2% of cashback for gas stations and restaurant bills up to $1000 every quarter. The second option sounds even better – 5% in rotating categories each quarter like gas stations, restaurants, Amazon.com and more, up to the quarterly maximum each time you activate. Here is a link if you want to look at the offers closer. https://www.discover.com/credit-cards/student/ There are some features provided by these cards that can come in handy, especially for the students.

Larry Warrena year ago

You are right about searching the information about the companies beforehand. “Do your research” is the main rule of mine these days. I’ve worked with Discover it a few years ago and can say that the offers are incredible. At first, you think that student credit card cashback is just a few additional cents a month that don’t even matter. Well, I definitely thought so. However, it turned out that the money you get back give you more satisfaction than even the first salary does. It’s a great feeling to
get money back just doing nothing.

There are also some federal student loans that even students with bad credit score can apply for. Here is a useful article on it: https://www.nerdwallet.com/blog/loans/student-loans/bad- credit-
student-loans/ Of course, it also depends on the credit history you have. If you’ve reached your federal loan limit, look for private lenders.

I wish you good luck with your financial situation.


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