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See all posts Frank GogolHow to Get Personal Loans for Nurses
Nurses do some of the most challenging and important work in society, working nights for long hours in highly stressful situations. However, despite decent salaries and employment prospects, nurses still face a number of difficult financial problems. Many nursing school graduates leave school saddled with substantial debt, which can make purchasing a home or car impossible.
The strong employment and earnings of nurses give them other financial options, though, including personal
Financial Issues Facing Nurses
The high cost of nursing school sets many nurses back in their early careers, where they already must work grueling hours doing the most difficult tasks. This section explores a couple of common financial woes that nurses face.
Student Debt
Perhaps the biggest financial obstacles facing nurses is student debt. 70% of nursing school graduates leave school with student debt, with the average debt holder graduating with $30,000 of debt. This level of debt will take up a substantial portion of a nurse’s earnings for many years. Furthermore, the often irregular hours that nurses work tends to incur greater daily costs in areas like childcare and transportation. The combination of these factors can leave nurses struggling just to meet daily costs.
Homeownership is Often Out of Reach
Nurses have always been respected in society for their hard work, and at one time they could comfortably own a home soon after graduating. Now, however, the size of the average nursing student loan debt makes homeownership all but impossible for many. Unable to purchase a home, nurses are stuck in the cycle of renting and so are unable to build their financial profile with a home.
Are There Loans for Nurses?
Yes, nurses are well-positioned to take out a personal loan. Lenders offering personal
Qualifying for a loan simply involves filling out an application with important financial information and authorizing a credit check. If your finances meet the eligibility requirements, you will be offered a range of loan amounts and term lengths, and an interest rate. You can choose the ideal amount and term, and sign a promissory note agreeing to the loan.
Once you receive the funds, you start making monthly payments on your loan on the agreed-upon date. Now, you can have funds for purchasing a home, a car, or simply managing costly daily expenses.
5 Tips for Getting a Personal Loan as a Nurse
While nurses are in a good position to qualify
Know Your Credit Score
Since credit score is the most important metric that lenders use to assess the finances of a loan applicant, knowing your credit score is vital. Many lenders advertise a minimum credit score that applicants must meet, so, with your credit score in hand, you can shop around different lenders and see which is suitable.
You are entitled to one free credit report each year from the major credit agencies: Experian, Equifax, and TransUnion. Also, your bank likely provides you with an updated FICO credit score on your online account page.
Look into Different Loan Options
You shouldn’t just go with the first lender that you find. Rather, you should explore different lenders and see the terms and rates that they offer. Each lender assesses the finances of applicants in a different way and has their own criteria that applicants must meet. Lenders differ in the term lengths, amounts, and rates that they offer. Also, lenders offer different features, with some providing flexibility in terms and not charging fees, while others penalize you for prepayment and offer no hardship protection.
Choose the Best Lender for You
With an idea of the strengths and weaknesses of each lender, you can choose the ideal one for your financial circumstances. First, you should find a lender with eligibility criteria that you can meet, whether it involves meeting a minimum credit, income, or requiring a cosigner. Then, with a range of options that you know you qualify for, you can choose the lender that most fits your needs.
Know what Debt-to-Income Ratio Is
Another metric that lenders use to determine the strength of your finances is your debt-to-income ratio. You can calculate your debt-to-income ratio by taking your monthly recurring debt (expenses like rent, car payments, and credit card payments) and divide it by your monthly income. This figure gives lenders an idea not just of your income, but your spending habits and overall financial health. If you know what your debt-to-income ratio is, you can work on bringing it down so you can obtain a better interest rate.
You can also use a debt-to-income ratio calculator.
Don’t Apply for More Than You Need
The larger your loan is, the more interest will accrue on it over time. Personal
Conclusion
While nurses face a number of financial challenges after graduating, their job security also affords them valuable opportunities. With a personal loan, nurses can make it through patches of financial difficulty, cover important costs, and avoid getting dragged down by student debt.