For many students, financing higher education can be a daunting task, especially when faced with a credit score of around 660. This score, while not ideal, can still open doors to various student loan options. Understanding how credit scores affect loan eligibility, the types of loans available, and the specific criteria lenders seek is crucial for potential borrowers. This comprehensive guide will provide insights into securing student loans with a 660 credit score, exploring various aspects of the lending process and offering strategies to improve your chances of approval.

Can I get approved for a student loan with a 660 credit score?

Yes, it is possible to get approved for a student loan with a 660 credit score, but your options may be more limited compared to those with higher scores. Lenders typically evaluate multiple factors, including income and employment history, alongside your credit score.

Understanding Credit Scores

Credit scores range from 300 to 850, with higher scores indicating better creditworthiness. A score of 660 is generally considered fair and indicates that you have managed credit responsibly but may have some negative marks. Understanding how these scores are calculated—primarily through payment history, amounts owed, and length of credit history—can help you identify areas for improvement.

Importance of Credit for Student Loans

Your credit score plays a significant role in securing student loans, particularly with private lenders. Federal loans generally do not require a credit check, but private lenders assess credit to determine the risk of lending. A score of 660 may lead to higher interest rates or require a co-signer, impacting your total borrowing costs.

What Lenders Look For

Lenders consider various factors beyond just the credit score when assessing loan applications. They typically review income, debt-to-income ratio, and credit history. A strong application may offset a lower credit score, so ensuring all aspects of your financial profile are in good order is essential.

What is a 660 credit score considered?

A 660 credit score is generally categorized as “fair” by most credit scoring models. While it is not the worst score, it indicates that borrowers may face challenges in securing favorable loan terms.

Credit Score Ranges Explained

Credit scores are divided into several categories: poor (300-579), fair (580-669), good (670-739), very good (740-799), and excellent (800-850). A score of 660 falls into the fair category and suggests that while you have some credit history, there might be areas that need improvement for better loan options.

Implications of a 660 Score

Having a 660 credit score may result in higher interest rates and less favorable loan terms compared to borrowers with higher scores. This can lead to increased monthly payments and overall loan costs. Understanding the implications can help you make informed decisions about borrowing.

How It Compares to Other Scores

Compared to higher scores, a 660 score limits your options for loans and can impact the terms offered. For instance, borrowers with scores above 740 typically have access to lower interest rates and favorable repayment terms, underscoring the importance of aiming for a higher credit score.

What types of student loans can I apply for?

There are primarily two types of student loans available: federal student loans and private student loans. Each type has unique benefits and requirements that can affect your approval chances based on your credit score.

Federal Student Loans

Federal student loans, such as Direct Subsidized and Unsubsidized Loans, do not require a credit check, making them accessible for students with lower credit scores. These loans typically offer lower interest rates and flexible repayment options, which can ease the financial burden of education.

Private Student Loans

Private student loans are offered by banks, credit unions, and other financial institutions and typically require a credit check. Approval and terms depend heavily on your credit score, income, and employment history. Borrowers with a 660 score may need to provide additional documentation or secure a co-signer to improve their application.

Comparing Loan Types

When choosing between federal and private loans, consider interest rates, repayment options, and eligibility requirements. Federal loans generally offer more favorable terms, such as income-driven repayment plans and potential loan forgiveness, compared to private loans, which may have stricter repayment conditions and higher rates.

Are there specific lenders that accept a 660 credit score?

Yes, several lenders are known to accept borrowers with a credit score of 660. These lenders may offer more flexible approval criteria, making it easier for students to secure funding.

List of Lenders with Flexible Requirements

Some lenders that may accept a 660 credit score include SoFi, Discover Student Loans, and College Ave. However, terms may vary, so it’s essential to compare offers and read the fine print before committing. Each lender has specific criteria, which can influence your approval chances.

How to Find Lenders

Research potential lenders through online comparison tools, financial aid websites, or student loan brokers. These resources can help you identify lenders that cater to borrowers with fair credit scores and provide insights into their loan offerings and terms.

Evaluating Lender Options

When evaluating lender options, consider interest rates, fees, loan terms, and customer service ratings. Reading reviews and testimonials can provide valuable insights into the lender’s reputation and help you make an informed decision. Always ensure you understand the total cost of borrowing before signing any agreements.

What factors influence student loan approval beyond credit score?

In addition to credit scores, several factors influence student loan approval, including income level, employment history, and the amount of debt you currently hold. Lenders assess these elements to gauge your ability to repay the loan.

Income and Employment History

Your income level and employment history are critical in the approval process. Lenders want to see a stable income that can support monthly loan payments. Demonstrating consistent employment or a reliable source of income can increase your chances of approval, especially with a lower credit score.

Debt-to-Income Ratio

The debt-to-income (DTI) ratio measures your monthly debt payments relative to your gross monthly income. Lenders typically prefer a DTI below 43%, as higher ratios may indicate potential repayment issues. Keeping your DTI low can improve your loan application prospects.

Loan Amount Requested

The amount you request can impact your approval chances, particularly if you have a lower credit score. Lenders may be more willing to approve smaller loan amounts, as they represent less risk. Adjusting your loan request may enhance your likelihood of securing funding.

How does my credit history impact my student loan application?

Your credit history significantly impacts your student loan application, as it provides lenders with a record of your borrowing behavior. A positive credit history can facilitate approval, while a negative one can hinder your chances.

Understanding Credit History

Your credit history includes information on your borrowing and repayment behavior, such as open accounts, payment history, and any defaults or delinquencies. Lenders review this history to assess your creditworthiness and determine the risk associated with lending to you.

Negative Marks and Their Effects

Negative marks, such as late payments or defaults, can severely impact your credit score and loan approval chances. These marks indicate potential repayment issues and may raise red flags for lenders. Understanding how to address and mitigate these negative marks can improve your credit profile.

Improving Your Credit History

To enhance your credit history, focus on making timely payments, reducing outstanding debts, and avoiding new hard inquiries. Regularly monitoring your credit report for errors and disputing inaccuracies can also help improve your overall credit standing, which can positively influence future loan applications.

What is the difference between federal and private student loans?

The primary difference between federal and private student loans lies in the eligibility criteria, interest rates, and repayment options. Understanding these differences can help you make informed borrowing decisions.

Interest Rates Comparison

Federal student loans generally offer fixed interest rates, which are often lower than private loan rates, especially for borrowers with lower credit scores. In contrast, private loans may have variable rates that can fluctuate over time, potentially leading to higher costs if interest rates rise.

Repayment Options

Federal loans provide a range of repayment plans, including income-driven options that adjust payments based on income. Private loans typically offer fewer options, which can limit flexibility for borrowers. Understanding these differences can guide you in selecting the right loan type for your financial situation.

Credit Requirements

Federal student loans do not require a credit check, making them accessible to a broader range of borrowers, while private loans do. This distinction is crucial for those with fair credit scores, as federal loans may represent a safer and more affordable borrowing option.

Are there alternatives to traditional student loans?

Yes, there are several alternatives to traditional student loans, including scholarships, grants, income share agreements (ISAs), and payment plans. Exploring these options can help you finance your education without incurring substantial debt.

Scholarships and Grants

Scholarships and grants provide free funding for education that does not need to be repaid. These funds can significantly reduce the cost of college, and many are awarded based on merit or financial need. Researching available scholarships and applying early can increase your chances of receiving these awards.

Income Share Agreements

Income share agreements (ISAs) are a relatively new funding option where students receive financial support in exchange for a percentage of future income for a set period. ISAs can be appealing for students who are uncertain about future earnings or want to avoid traditional debt.

Payment Plans

Some colleges and universities offer payment plans that allow students to spread tuition payments over the academic year. These plans can reduce the financial burden of tuition and may not require a credit check, making them accessible to students with lower credit scores.

Can I get a co-signer for my student loan?

Yes, having a co-signer for your student loan can significantly improve your chances of securing approval and obtaining better loan terms. A co-signer with a strong credit history can provide additional assurance to lenders.

Benefits of Having a Co-signer

A co-signer can enhance your application by providing a stronger financial profile, leading to lower interest rates and higher loan amounts. This support can be particularly valuable for students with fair credit scores, as it reduces the lender’s risk and can facilitate a smoother approval process.

Who Can Be a Co-signer?

Typically, a co-signer should be a financially stable individual, such as a parent, relative, or guardian, with a strong credit history. Lenders often require the co-signer to meet certain credit criteria and may review their financial documents as part of the application process.

Impact on Approval Chances

Having a co-signer can significantly increase your chances of loan approval, particularly with private lenders. It can also improve the terms of the loan, such as interest rates and repayment options, making it a strategic move for students seeking financial support.

What are the eligibility criteria for federal student loans?

Eligibility for federal student loans generally includes factors like citizenship status, enrollment in an eligible program, and satisfactory academic progress. Understanding these criteria is essential for potential borrowers.

General Requirements

To qualify for federal student loans, you must complete the Free Application for Federal Student Aid (FAFSA) and demonstrate financial need. Additionally, you must be enrolled at least half-time in an eligible degree or certificate program at a participating institution.

Citizenship and Residency

Federal student loans are typically available only to U.S. citizens, permanent residents, and certain eligible non-citizens. International students are generally not eligible for federal funding, which can limit their options for financial support.

Enrollment Status

To qualify for federal loans, students must maintain satisfactory academic progress and remain enrolled at least half-time. Failing to meet these criteria can impact your eligibility for future loan disbursements.

How can I improve my credit score before applying?

Improving your credit score before applying for student loans can enhance your approval chances and result in better loan terms. There are several strategies you can implement to boost your score.

Paying Off Existing Debts

One of the most effective ways to improve your credit score is by paying down existing debts. Reducing your credit card balances and paying off loans can lower your credit utilization ratio, positively impacting your score. Aim for a utilization rate below 30% to demonstrate responsible credit management.

Making Timely Payments

Consistently making on-time payments is crucial for maintaining a healthy credit score. Set up reminders or automatic payments to ensure you never miss a due date. A history of timely payments can significantly improve your creditworthiness over time.

Using Credit Responsibly

Using credit responsibly includes avoiding unnecessary hard inquiries, minimizing new credit applications, and maintaining a mix of credit types. Keeping old accounts open can also help lengthen your credit history, which is a factor in credit scoring models.

What role does loan amount play in approval?

The loan amount you request can significantly affect your approval chances, especially with a lower credit score. Lenders assess the loan amount in relation to your income and credit profile when making decisions.

Understanding Loan Limits

Federal student loans have specific borrowing limits based on your year in school and dependency status, while private loans vary by lender. Understanding these limits can help you align your borrowing requests with lender expectations, potentially improving approval chances.

Impact of High Loan Amounts

Requesting a high loan amount can raise concerns for lenders, particularly if your credit score is below average. Higher loan amounts represent increased risk, which could lead to denial. Consider requesting the minimum amount necessary to cover tuition and expenses.

Adjusting Loan Requests

If you have concerns about approval, consider adjusting your loan request to a lower amount. This strategy may enhance your chances of securing the loan while also reducing overall debt burden. It is crucial to calculate your financial needs accurately before applying.

Can I appeal a denied student loan application?

If your student loan application is denied, you may have the option to appeal the decision, particularly if you believe there was an error in the evaluation process. Understanding how to approach this can be beneficial.

Reasons for Denial

Common reasons for denial include inadequate credit history, high debt-to-income ratios, or insufficient income. Understanding the specific reasons for denial can help you address the issues when appealing or reapplying in the future.

How to File an Appeal

To appeal a denied application, contact the lender directly for guidance on their appeal process. You may need to provide additional documentation or evidence to support your case, such as improved credit scores or changed financial circumstances.

Possible Outcomes

The outcome of an appeal can vary based on lender policies and the strength of your case. In some instances, the lender may reconsider your application, while in others, they may uphold the denial. Understanding the lender’s decision-making process can help set realistic expectations.

What are the current interest rates for student loans?

Current interest rates for student loans can vary based on the type of loan and the lender. Staying informed about these rates is crucial for budgeting purposes and understanding potential repayment costs.

Trends in Interest Rates

Interest rates for federal student loans are set by Congress and can change annually. Private loan rates are influenced by market conditions and individual borrower profiles. Monitoring these trends can help you identify the best time to apply for loans.

How Rates Affect Monthly Payments

Interest rates directly impact monthly payments and the total cost of the loan over time. A higher interest rate can significantly increase the total amount paid back, making it essential to shop around for the best rates available.

Future Predictions

Future predictions for interest rates can be influenced by economic conditions, inflation, and monetary policy. Staying informed about economic trends and potential changes in interest rates can help you plan your borrowing strategy effectively.

Are there special programs for borrowers with lower credit scores?

Yes, there are special programs designed to assist borrowers with lower credit scores, including federal programs and state-specific offerings. These programs can provide additional support for students seeking loans.

Federal Programs Overview

Federal programs, such as Direct Subsidized Loans, do not require a credit check and are available to students who demonstrate financial need. These loans can provide more favorable terms than private loans, making them an attractive option for those with lower credit scores.

State-Specific Programs

Many states have their own student loan programs that cater to residents, offering competitive rates and flexible repayment options. These programs can be beneficial for borrowers with fair credit scores, providing an alternative to traditional private loans.

Lender-Specific Offerings

Some private lenders offer specific programs for borrowers with lower credit scores, which may include flexible underwriting criteria or lower interest rates. Researching these offerings can help you identify potential opportunities for securing funding.

How can I find a reputable lender?

Finding a reputable lender is essential to ensure a positive borrowing experience. Conducting thorough research can help you identify trustworthy options.

Researching Lenders Online

Use online resources, such as lender comparison websites, to research potential lenders. These platforms can provide insights into interest rates, fees, and customer service ratings, allowing you to make informed decisions based on your credit profile.

Reading Reviews and Testimonials

Reading reviews and testimonials from previous borrowers can offer valuable insights into a lender’s reputation. Look for feedback on customer service, ease of the application process, and overall satisfaction to gauge whether a lender is right for you.

Asking for Recommendations

Personal recommendations from friends, family, or financial advisors can help you identify trustworthy lenders. These connections can provide first-hand experiences and insights into the lending process, increasing your confidence in your choice.

What documents do I need to apply for a student loan?

When applying for a student loan, you will need to provide several documents to verify your identity, financial status, and enrollment in school. Being prepared can streamline the application process.

Personal Identification

Typically, you will need to provide a government-issued ID, such as a driver’s license or passport, to verify your identity. This document helps lenders confirm that you are who you claim to be, reducing the risk of fraud.

Financial Information

You may also need to submit financial information, including tax returns, W-2 forms, or proof of income. This data helps lenders assess your financial situation and determine your ability to repay the loan. Providing accurate and complete information can expedite the approval process.

School Enrollment Verification

Proof of enrollment in an eligible program is another crucial document required for loan applications. This may include a letter of acceptance, registration, or enrollment verification from your school. Ensuring you have this documentation ready can help facilitate the application process.

What are the potential risks of borrowing with a low credit score?

Borrowing with a low credit score can present several risks, including higher interest rates, loan denial, and long-term financial implications. Understanding these risks is critical for making informed borrowing decisions.

Higher Interest Rates

Borrowers with lower credit scores often face higher interest rates, which can significantly increase the total cost of borrowing. This can lead to larger monthly payments and a longer repayment period, making it essential to consider the long-term financial impact of borrowing.

Loan Denial Risks

With a lower credit score, the risk of loan denial increases, particularly with private lenders. This can limit your options for financing education and may require you to seek alternatives that may not be as favorable, such as co-signing or borrowing from less reputable sources.

Long-Term Financial Implications

Borrowing with a low credit score can affect your overall financial health, as high-interest loans can lead to increased debt burdens and prolonged repayment periods. This scenario can hinder your ability to save for future goals, such as buying a home or investing in retirement.

How do loan terms vary by lender?

Loan terms can vary significantly by lender, including interest rates, repayment periods, and fees. Understanding these differences is essential for selecting the best loan for your financial situation.

Understanding Loan Terms

Loan terms encompass various aspects, such as interest rates, repayment schedules, and any associated fees. Each lender has different policies and criteria, which can impact your borrowing experience and total repayment costs. Familiarizing yourself with these terms can help you make informed choices.

Comparing Loan Offers

When comparing loan offers, consider not only the interest rates but also the repayment terms and fees associated with each loan. A lower interest rate may not be beneficial if it comes with high fees or unfavorable repayment terms. Carefully evaluating these factors can lead to better financial outcomes.

Importance of Terms in Approval

The terms offered by lenders can influence your approval chances, particularly if you have a lower credit score. Understanding how these terms align with your financial profile can help you choose the right lender and loan type for your needs.

Can I refinance my student loans later if my score improves?

Yes, refinancing student loans is a viable option for borrowers who improve their credit scores. This process can help secure better interest rates and repayment terms, potentially saving you money in the long run.

Understanding Refinancing

Refinancing involves taking out a new loan to pay off one or more existing loans, often at a lower interest rate. This process can lead to reduced monthly payments and overall savings. However, it is essential to assess whether refinancing aligns with your financial goals and circumstances.

Benefits of Refinancing

Refinancing can provide several benefits, including lower interest rates, reduced monthly payments, and the ability to change repayment terms. Additionally, borrowers with improved credit scores may qualify for better loan offers, further enhancing their financial situation.

Timing for Refinancing

Timing is crucial when considering refinancing. Ideally, you should wait until your credit score has improved significantly, and you have a stable income. Monitoring market interest rates can also help you identify the best time to refinance, maximizing potential savings.

What if I’ve defaulted on a previous loan?

Defaulting on a previous loan can complicate your ability to secure new student loans. However, there are options available for borrowers in this situation.

Impact of Default on New Loans

A defaulted loan can severely impact your credit score, making it challenging to obtain new loans. Lenders typically view defaults as a significant risk, which can limit your options for financing further education. Understanding the implications of default can help you navigate the borrowing landscape more effectively.

Options for Defaulted Borrowers

Defaulted borrowers may have options to rehabilitate their loans or consolidate them into a new loan. Rehabilitation often involves making a series of agreed-upon payments, while consolidation can help manage multiple debts. Exploring these options can provide a pathway to improving your financial standing.

Improving Your Situation

To improve your situation, focus on developing a plan to repay your defaulted loans and avoid taking on new debt until you have addressed the default. Seeking financial counseling can also provide guidance and support in navigating your options.

How does the loan application process work?

The loan application process typically involves several steps, including gathering necessary documents, completing the application, and awaiting approval. Understanding this process can help you prepare effectively.

Steps in the Application Process

The application process usually begins with gathering required documents, such as identification, financial information, and enrollment verification. Next, you will complete the application, either online or in person, and submit any necessary supporting documentation to the lender.

Common Pitfalls to Avoid

Common pitfalls in the loan application process include incomplete applications, missing documentation, or failing to review loan terms thoroughly. Taking the time to double-check your application and ensuring all information is accurate can help avoid delays in the approval process.

Time Frame for Approval

The time frame for loan approval can vary by lender, ranging from a few days to several weeks. Factors influencing approval time include the lender’s processing speed, the completeness of your application, and any additional documentation required. Staying proactive can help expedite the process.

What are the repayment options for student loans?

Repayment options for student loans vary based on the type of loan and lender, including standard repayment plans, income-driven repayment plans, and loan forgiveness programs. Understanding these options can help borrowers manage their debt effectively.

Standard vs. Income-Driven Repayment

Standard repayment plans typically require fixed monthly payments over a specified period, while income-driven repayment plans adjust payments based on the borrower’s income. Choosing the right plan can significantly impact your financial situation during repayment.

Loan Forgiveness Programs

Loan forgiveness programs can provide relief for borrowers who meet specific criteria, such as working in public service or teaching in underserved areas. Exploring these options can help borrowers reduce their debt burden, making it a worthwhile consideration.

Early Repayment Options

Some loans allow for early repayment without penalties, which can be beneficial for borrowers looking to pay off their debt faster. Understanding the terms of your loan can help you take advantage of these options and save on interest costs in the long run.

What should I know about interest rates during loan repayment?

Interest rates during loan repayment can significantly impact the total cost of borrowing. Understanding how these rates work is essential for managing your student loans effectively.

Fixed vs. Variable Rates

Fixed interest rates remain constant throughout the life of the loan, providing predictability for borrowers. In contrast, variable rates can fluctuate based on market conditions, potentially leading to increased payments over time. Understanding these differences can help you choose the best loan for your financial situation.

How Interest Accrues

Interest accrues on student loans daily, meaning that the longer you take to repay the loan, the more interest you will pay. Understanding how interest accrual works can help you formulate a repayment strategy that minimizes total costs.

Impact on Total Loan Cost

The interest rate has a direct impact on the total cost of your loan. A higher interest rate can lead to significantly more paid over the life of the loan, emphasizing the importance of securing the best possible rate when borrowing.

How can I budget for student loan payments?

Creating a budget for student loan payments is essential for managing financial obligations and ensuring timely payments. A well-structured budget can help you plan for the future while balancing other expenses.

Creating a Monthly Budget

To create a monthly budget, list all sources of income and fixed expenses, including student loan payments. Allocate funds for variable expenses, savings, and discretionary spending to establish a comprehensive financial picture. Regularly reviewing and adjusting your budget can help you stay on track.

Calculating Loan Payments

Understanding how to calculate loan payments can help you plan accordingly. Use online calculators to estimate monthly payments based on loan amount, interest rate, and repayment term. This information can aid in determining how loans fit into your overall budget.

Adjusting Lifestyle Expenses

To accommodate student loan payments, you may need to adjust lifestyle expenses. Identifying areas where you can cut back, such as entertainment or dining out, can free up funds for loan payments. Prioritizing essential expenses can help ensure you meet your financial obligations without overwhelming your budget.

What is the impact of student loans on credit score?

Student loans can have a significant impact on your credit score, influencing both your credit history and overall financial health. Understanding this relationship is crucial for managing your credit effectively.

Understanding Credit Score Components

Your credit score is calculated based on several components, including payment history, amounts owed, length of credit history, types of credit used, and new credit. Student loans contribute to these components, particularly if you maintain timely payments.

Long-term Effects of Student Loans

Long-term, student loans can impact your credit score positively or negatively, depending on your repayment behavior. Consistently making payments can help build a solid credit history, while missed payments or defaults can damage your score, affecting future borrowing opportunities.

Managing Student Loan Debt

Effectively managing student loan debt is essential for maintaining a healthy credit score. Strategies include setting up automatic payments, budgeting for monthly payments, and exploring options for loan consolidation or refinancing if necessary. Managing your debt responsibly can lead to long-term financial stability.

Are there tax benefits associated with student loans?

Yes, there are several tax benefits associated with student loans, including the student loan interest deduction and potential tax credits for education expenses. Understanding these benefits can help you maximize your financial situation.

Understanding Student Loan Interest Deduction

The student loan interest deduction allows borrowers to deduct up to $2,500 of interest paid on qualified student loans from their taxable income. This deduction can reduce your taxable income and potentially lower your overall tax bill, making it a valuable benefit for borrowers.

Tax Credits for Education

In addition to the interest deduction, tax credits such as the American Opportunity Credit and the Lifetime Learning Credit can provide additional financial relief for education-related expenses. These credits can help offset tuition costs and reduce the overall financial burden of education.

Consulting a Tax Professional

Consulting a tax professional can help you navigate the complexities of tax benefits associated with student loans. A professional can provide personalized advice based on your financial situation, ensuring you take full advantage of available benefits and deductions.

What are common misconceptions about student loans?

There are several common misconceptions about student loans that can lead to confusion for borrowers. Understanding these myths can help you make informed decisions regarding your financing options.

Myths vs. Facts

Common myths about student loans include the belief that all loans require a co-signer or that federal loans are always better than private loans. In reality, many federal loans do not require a co-signer, and private loans can sometimes offer competitive terms that may be beneficial depending on your situation.

Understanding Loan Terms

Another misconception is that all loans have the same terms. In reality, loan terms can vary significantly by lender and type of loan, impacting your overall experience. It is essential to shop around and compare offers to ensure you select the best option for your financial needs.

Clarifying Lender Policies

Some borrowers believe that lenders have inflexible policies regarding credit scores and approval. However, many lenders have varying criteria and may offer flexibility based on other financial factors, such as income and employment history. Understanding lender policies can empower you to seek out more favorable borrowing options.

Mini FAQ

Can I get a student loan with a 660 credit score?

Yes, it is possible to obtain a student loan with a 660 credit score, although options may be limited, and interest rates could be higher.

What types of loans can I apply for?

You can apply for both federal and private student loans, with federal loans typically being more accessible for those with lower credit scores.

How can I improve my chances of approval?

Improving your credit score, providing a co-signer, and demonstrating stable income can enhance your approval chances.

What should I know about loan terms?

Loan terms can vary widely between lenders, affecting interest rates, repayment options, and fees. It’s essential to compare offers before deciding.

What are the risks of borrowing with a low credit score?

Borrowing with a low credit score can lead to higher interest rates, increased chances of loan denial, and long-term financial implications.

Can I refinance later if my credit improves?

Yes, if your credit score improves, you may qualify for refinancing options that offer better terms and lower interest rates.