Student loans to pay off credit cards and raise credit score
The daughter of my acquaintances has plenty of money left from her student loans and supposedly, the school she attends, lets students spend such extra funds any way they want except investing in stocks, bonds, etc. So she plans to use these student loans to pay off credits cards, of which she has more than few and at high interest rates. She also has $18,000 auto loan at 9.5% for 60 months and is unable to get a better rate because her credit score is down due to a very high utilisation ratio. So using the excess money left from her student loans, she can pay off her credit card debt, save money with lower interest rate and raise credit score by lowering utilization ratio. And she will likely get much lower rate on her auto loan. After she graduates, the student loans must be repaid at the fixed 5.75% rate amortized over 30 years. From what I am told she would owe around $34,000 and with the Bachelor Degree in Civil Engineering, she should do fine. Also see can I use student loans to buy a car?
Mon Jun 7, 2010 10:06AM | Copyright: www.bad-credit-advisor.com | More in Credit Repair Tips | Comments (0)
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