Even if you have little credit or no credit rating at all, you can still get a student loan. Student loans are a good way to build credit as well, so once you obtain one, be sure to repay it.

Wonderful student loans for those with little or no credit are government-backed loans or loans offered through your university. One such option is the Stafford loan. When the student borrows these loans, most lenders do not look at the student’s credit history. You can apply for a Perkins loan as well, which also does not look at your credit history. The government supplies the money for this type of loan, but it is reserved those who are most in need, so this option is not available for everyone.

Because Perkins and Stafford student loans are often limited to a particular amount each year and in total, there are also government-backed student loans for parents of students, called PLUS loans. Because these are government-backed loans, lenders - whether a financial institution or the government itself - do not look at anyone’s credit score. These lenders do, however, take a look at your credit history to decide if you are late on any payments or in default. If so, you will not be able to receive a loan.

One thing to remember with government-backed loans is that, though you can defer payments and you may have very low interest rates, you must re-pay your loans. The government cannot only hire a bill collector, but they can confiscate your federal tax refunds or even deduct the payments from your wages. Also, if you declare bankruptcy, more often than not, your student loans will not be forgiven. If you have bad credit or no credit, student loans can be a good option for you.