Few Tips for Reducing Your Student Loan Interest
Student loan can really hit you hard when the time comes to repay it back. The worst part of it is that majority of your monthly payments will be to clear the interest and not the principal amount. Even to get approval for your student loan is not an easy task. You have to make good strategy to get your loan with lower rate of interest.
Following few tips may be of your interest if you are looking forward to refinance your student loans for a lower interest rate.
Take a look at your credit
Most of the creditors will like to see your credit score and therefore before applying for student loan make sure that your credit score is impressive. If you have good history of credit then it will be easier to get loan at lower interest. Therefore talk to various credit rating agencies to make sure that there is no error in your credit rating.
In case, there is some error then get it corrected. Also you should be careful about your credit card spending. In order to be safe try to keep your credit balance low by paying regularly for few months before applying for loan.
Keep a watch in your spending
Make sure that you do not spend too much by unnecessary purchases or by staying in costly apartment with higher rents or going to any expensive restaurants. Your creditors are going to watch your spending habits, before approving your loan. On the contrary, if you can show that you save your money regularly then you can be a good candidate for loan with lower interest.
Give your complete past history
You must give full details about schools and colleges where you have studied and your employment record where you have good experience. You can score higher points if you have studied from some good school or college and studied science, mathematics, engineering or business related subjects. If you have any job offer in hand then do not forget to submit your offer letter. In case, you have got any promotion in your job then do mention that in your application.
Show income from all sources
While showing your income, do not just mention about the income that you are getting from your present job. You must also include everything that you may be getting through interest, dividend or bonus or any extra income from various sources.