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Question for the Money Doctors

Question submitted on Jun 4, 2013.

Question

I am 50 years old, working fulltime and attending college at night. My bank just closed my line of education credit because my credit score has dropped too low. I need to turbo boost my credit score in the next six months which is the deferrment period before my loans become due. I am a year away from graduating and am devastated by this event. I know the usual ways of building credit but like I said, I'm in serious need of a turbo boost so that I can apply to my bank again for a student loan before I have to start paying. I have every intention of finishing my degree and going to law school thereafter so this is quite a blow. Please help! Many thanks!!

Answer

You may have more luck going though FAFSA Free Application for Federal Student Aid) for a student loan than from the bank. FAFSA awards student loans a grants based on need and not on credit score.&nbsp Visit http://www.fafsa.ed.gov/ for more information.

If you still need to improve your credit score fast, the fastest way is to pay down debt (but not pay-off). Paying off debt, although is best for you financially, is not the best to improve your credit score. Generally, your credit score will increase fastest if you pay down your debt to 50% of the credit limit.

Good luck!


For additional information visit http://www.360financialliteracy.org/