FAQ - Personal Finance - Financial Aid - Western Illinois University

Financial Aid

FAQ - Personal Finance

What is CashCourse?
- CashCourse provides online financial education resources for college students and can help you build money management skills and prepare you for financial success. Whether you're looking for a simple budget worksheet, some guidance in paying for school, or planning for the future, CashCourse has valualbe information for everyone.
Where can I find helpful information on money management, credit cards, and personal finance?
- As a start, regularly check the Money Management section of Financial Aid website - there you can find information and tools to help you become a savvy student consumer. Also visit the CashCourse website.
Why is creditworthiness important when I apply for a private alternative loan?
- It is important because your eligibility, interest rate, and some fees are determined by your credit rating (and that of your cosigner if you have one).
What is a credit rating or score?
- It is the numerical rating that lenders use to determine the risk associated with a borrower.
What is the difference between a credit report and a credit score?
- A credit report describes ones financial history. The report covers account information, account balances, and information on any late or missed payments. A credit score is a numeric designation and is calculated from your credit history and reflects how well credit has been handled in the past.
Why does good credit matter?
- Good credit affects the terms and conditions offered to you when you apply for loans. Generally, the better the credit, the lower the interest rate. This will save you money on such items as alternative loans for your education, car loans, and later even a loan on a house.
What is the best way to improve my credit score?
- There are two ways - the first is to make payments on time, and the second is to pay down debt.
What factors affect my credit score?
- The factors which affect your credit score in approximate order of importance are:
  - payment history
  - amount owed
  - length of credit history
  - new credit opened
  - types of credit used
If I owe $3,000 on a credit card that charges 18% interest, how long will it take me to be debt free by making monthly payments of $75?
- It will take 263 months (almost 22 years). During that time, you will pay $4,115.44 in interest.

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