Having a bad credit always makes you feel scary and if you are a student it will scare you more for sure. Students take up loans to fulfil all sorts of education needs, study abroad and lot more. They even take up credit cards and use it anyhow. Non-payment of the loan amount in due period makes it a bad debt and all this affects the credit score and credit reports. When you need some more loans to fulfil further studies but if you carry a bad credit, negative credit status, mostly banks or loan lenders display no trust and deny the loan application.