What You Should Know About Credit Reports : Credit Checks and Parent Loans

/Home/Student Loan Tips and Advice/Parent Loans and Credit Reports

What You Should Know About Credit Reports
Credit Checks and Parent Loans

As soon as you think you may have to take out a loan to pay a part of your family share of costs, it's time to check on your credit rating.

Your Credit Report
This is a record of your financial history. It shows your loans, the amount you've borrowed on credit cards, and how well you repay your debts.

Request a Copy of Your Credit Report
Residents of all states can obtain a free credit report containing information from all three agencies once a year. You can obtain this report at www.AnnualCreditReport.com or by calling (877) FACT-ACT.

For an additional copy of your report during the year, you can obtain one online or order one by mail. If you wish to obtain your credit report online, use the websites listed below. There are also additional websites that offer combined reports from all three agencies. Online credit reports are confidential, require a credit card, are accessible for a specified number of days, and are printable from the website. To order by mail, enclose a check or money order with your letter containing the above information and send your request to the address for the agency of your choice. You will need to contact the agency to determine the fee for your state. A report costs $9–$14, depending on the state in which you live.

Experian
TransUnion
Equifax
Check the Report for Errors
If you find any errors, follow the instructions included in the report. To receive a PLUS Loan you must not have adverse credit. Adverse credit is when:

You're behind 90 days or more in any loan repayment.
You had serious credit problems in the last five years such as bankruptcy, foreclosure, repossession, or a tax lien.
If you have adverse credit:

Make payments on your overdue loan and ask that a new credit report be sent.
Provide a statement from your creditors that you have made satisfactory arrangements to repay your debt.
To Receive Parent Loans from a Private Source
You may need a stronger credit record than simply the absence of adverse credit. Private loans often look at how much you owe compared to how much you earn. Check with your lender to see what the requirements are.