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2005-2006 Financial Aid
Good Credit Information
In order to qualify for most private loans, you must have a good credit history. When you apply for your private loan, your lender may request a copy of your credit report and/or obtain your credit score. Credit scoring is the process by which your credit is assigned a score that identifies your level of future credit risk to the lender. This score is based on such factors as credit card payment history and outstanding debt as well as the
proportion of credit used as compared to available credit. This information will be used to evaluate your credit worthiness and determine whether you will be approved for a private loan. For a more comprehensive explanation of credit scoring, please refer to
www.myfico.com.
If you have had credit problems in the past or if you think you may have negative information on your credit history, you may want to consider obtaining a copy of your credit report. It should be noted that the three major credit bureaus (listed below) each maintain their information independently so the information each bureau has on file for you may differ. For this reason, it is advisable to check your credit with all three of the major credit bureaus.
At the current time, credit bureaus charge a fee for providing a copy of your
credit report. However, if you have been denied a loan, you are entitled to get a copy of your credit report free of charge.
By obtaining your credit report you are then able to review your credit history and identify and address any problems, inaccuracies and/or discrepancies that may prohibit you from being approved for loans.
The following resources have excellent information on how to maintain a good credit history.
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