Good credit is a critical factor in financing an MBA degree. It is always a good idea to pull your credit report from each of the 3 major credit reporting agencies (Transunion, Equifax, and Experian) before applying for any educational loans.
A good resource for obtaining credit reports at no cost is www.annualcreditreport.com, however, FICO scores are not included. Check all accounts listed to be sure the information is correct, and if incorrect or inaccurate information is found, make sure to contact the credit bureau issuing the report or else the company having reported incorrect information to the credit bureau(s). Some common credit report errors can be found here.
Shopping for private education loans means filling out multiple applications for credit, and while hard inquiries do have an impact on FICO scores, applicants can be strategic about when they apply to minimize that impact. Too many recent inquiries can negatively affect your FICO score; therefore, maintaining a good credit rating is equally important during school since students must reapply for loans to finance their second year studies. Information about FICO scores and rate shopping can be found here.
The Financial Aid Office recommends any student applying for loans review our general guidelines, but to get you started here are some quick recommendations:
- Before you apply, check with the Financial Aid Office about when you should start applying for loans and how much money you'll need to cover your costs.
- Private loans can easily be decreased, but never increased above the amount you request on your loan application.
- Make sure you apply for the loans you need for the entire academic year, not one semester at a time.
- Apply for all the private loans within a 30-day window.