BAD CREDIT LOANS, DO YOU WANT ONE?
A clean credit record is the first requirement to get a loan in a bank. Even a small mistake like paying a day late will reflect poorly on your record and you can end up having a bad credit image. It will tell the bank that you are a high risk client and will not be able to pay the loan back, this will lead to a big denial from the bank.
FOR MOST BAD CREDIT MAKES LIFE IMPOSSIBLE
Bad credit limits your possibilities to get loans but also closes the door to other financial opportunities. It turns you into a risky client and banks do not like that, they like people that can make their payments on time. Building your credit back could take time but it is not an impossible thing to do. Do not be discouraged by your bad credit, there are opportunities by people in your situation.
TRADITIONAL BANKS DON’T WANT TO KNOW YOU
Banks built their business on a trust basis, if they do not trust then you are not good for them. Traditional banks run extensive background checks on their clients and they will only give you any money if they are completely sure that you will be able to pay them back. However, if you have bad credit and need a loan, go to your bank first perhaps they have options for people like you.
TAKE CARE WHEN SHOPPING FOR BAD CREDIT LOANS
If the bank refuses to give you any money, then it is time to go to the unofficial institutions. There are hundreds of loan stores and loan websites where you could get a quick loan. They will not care if you have bad credit and will lure you in, but be careful, these establishments have high interest rates and if you fail to pay them you will fall into a debt cycle. Evaluate different options, make sure they are trustworthy, ask for past client’s opinions and then choose wisely.
DON’T BE UNTRUTHFUL
Do not lie about your income or your general financial situation, it will make you look worse in the eyes of the lender. Honesty will take you a long way, this also applies after you get the loan. It is easy to skip a monthly payment, you think it will not hurt but in reality will make you untrustworthy and you will not be able to get another loan in the future.
YOU WILL PAY A HIGHER INTEREST RATE
No matter if you are getting a loan directly from the lender or from a website, the interest rates will be higher because you look bad on paper and the business must make sure that you will be able to pay and that they will benefit from the loan. In your position you can hardly argue about the terms and conditions but make sure that you find the best deal possible.
SECURED LOANS GET LOWER RATES
If you are a house owner or you have a car, you could use it to secure your loan. Having an asset gives the bank or the lender the guarantee that you will pay, they will be holding the documents of the asset until the debt is repaid entirely. A secured loan will usually have a lower interest rate and an provide longer repayment terms.