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Need a Loan, but Have a Bad Credit History?

I have bad credit but need a loan

I have bad credit but need a loan

People make mistakes and bad decisions, and when it comes to finances, most of us can make the same mistakes and it often leads to a bad credit history.

If you’ve been turned down by some banks because of your bad credit history, it doesn’t entirely mean it is the end of the world.

Being turned down by a few banks does not strip you of your qualifications for a bank loan. Here are some pointers on loans, textloans and bank credits.

When Things take a Turn for the Worse

Chances for loans are based on your credit history; this is almost a natural rule in loans and banking. However, it is important that there are certain situations that indeed call for the “worse”, certain factors affect your credit rating including:

  • Credit score

Credit scores lower than 580 severely limits the options for loans

  • Multiple Credit Checks

Checking the credit score very often can also affect the credit rating, often times in a negative way.

  • Creditor Malfeasance

Recently filed bankruptcies can lead to high-interest loans or a restricted credit card.

It is important to find out the extent of your credit rating, Sit down with a financial advisor and find out what your credit situation really is. It might not be as bad as you think. But even if the credit is bad, there are still options open for you. Expect the interest rates to depend on how bad the credit is; if the interest rates are higher, naturally the monthly re-payments are also higher. The interest rates would also increase the whole amount paid throughout the loan’s life.

Applying for Loans despite the Bad Credit

Discussing your credit situation with a loan officer upfront is an important step if you want to apply for a bank loan despite the bad credit. Your chances of securing a loan would greatly improve if the lenders know you are fully aware of your financial mistakes and that you’ve learned from them and that you desire another chance. To do this, borrow the amount that you need. If you borrow more than the amount necessary, you increase your chance of getting into deeper debt.

It is also a good step to consult with a loan officer personally, you might be tempted with credit loans online, but the major fallback of these is if they are indeed reliable and non-fraudulent. Avoid adding insult to injury by consulting with a trusted, reliable loan officer personally.

When meeting the loan officer, make sure the necessary documents are prepared beforehand:

  • Driver’s license for identification
  • Social security card (banks cannot provide you with a loan without your social security number)
  • Documents that reflect the assets that you have, these are proof of ownership and they stantnd as collaterals if you want to secure a loan. Property deeds and vehicle titles could be sources of proof of ownership.
  • Provide primary and secondary sources of income
  • Provide proof explaining your previous bad credit incidences. When you can explain the financial mistakes, it increases your chances of securing a loan.

Do your best to negotiate the interest rates, align it with your ability to pay the monthly dues.



Need a Loan, but Have a Bad Credit History?


Posted in Debt, LoansComments Off on Need a Loan, but Have a Bad Credit History?

Bad Credit History and the Credit Card

Bad Credit History and the Credit Card



Bad Credit History and the Credit Card

Bad Credit History and the Credit Card

Credit cards are used on daily basis whenever it comes to paying bills for house utilities or receipts that come with expensive shopping. It is way easier to make a payment through credit cards due to the monthly installments presented by credit card companies. Consumers have gotten used to this way of making daily transactions and through this; the companies issuing credit cards have made huge profits in their turn.

But it is exactly this convenient feature in a credit card that has determined many consumers to irresponsibly use this piece of plastic, leading in this way to a bad credit report. Having this black mark in their credit report file, many consumers can not benefit from positively applying for another credit card. Why is that?

Because they will be turned down by the credit card company which would know about the bad credit record of the consumer. As a result, these consumers will try and look for other means to obtain another credit card.

They will apply over and over again, but they should know some factors while being in the process of credit card application:
* First thing would be not to repeat the same mistakes that have drawn you towards a bad credit report.

* The next one would be to try and fix the bad credit scoring, while taking a break from applying for credit cards to the old credit card companies. Instead you can approach the ones that are specialized in issuing credit cards for the ones with bad credit. With the new line of credit you will be able to proceed into fixing the credit history, positively renewing its image.

When looking for the credit card companies that are specialized in bad credit scorers, you should know that many of them are designed into exactly this purpose: to help customers reduce even eliminate their bad credit.

This is good news for the credit card consumers and in case you chase after one of these credit card companies, just make sure that you read carefully their terms and conditions. Do not overlook the small print where more information is contained, such as: fees, penalties, and other charges that you should familiarize yourself with.

Another thing would be to know exactly what the terms are for the secured credit cards, as in some situations you could be asked to open a saving account to back you up just in case. With the deposit, you could sometimes encounter the need to pay for several fees, such as start up fee, that annual fee, or a regular service fee and so on.

And last, but not least, do some shopping around to see which of these credit card companies offer the lower interest rates. After you will be issued another credit card, make sure to have your credit record fixed and do not let yourself tempted into using the plastic for another shopping.




Bad Credit History and the Credit Card


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