How to Bounce Back from a Student Loan Default
Student loans can be such a burden. It’s a mountain of money that can haunt you ten years, twenty years, or even longer. And if takes you some time after college to find the right job, student loans can really set you back. Big time.
That’s why nowadays so many people are defaulting on student loans. Once you default on your student loans, you immediately reap the benefits of not paying that huge payment each month. However, before long you get a letter and things go from bad to worse.
Here are a few action steps to take if you did default on your student loan payments. First, start over and make all future student loan payments on time. Every single on-time payment you make helps improve your credit score just a little bit. On the opposite side, if you miss one more payment, it can destroy your credit for good.
Second, start paying down your other debts. This affects your credit utilization rate. In short, if your credit cards are maxed out or close to it, your credit score falls. When you pay your balances down, your score bounces back.
The third action step is to partner with someone you trust. You can choose from taking out a joint credit card or asking them to cosign for a loan.
Whether your credit is screwed up because of a student loan default or not, Randash Auto Center’s awesome credit team can help you get into one of our vehicles. That’s right, not only do we look at each customer as a person and not a credit score, we also have a few sneaky ways to help re-build your credit.
Find us online at Randash Auto MT or visit our Billings or Bozeman dealerships.