Loan Credit Scores

Posted by on Oct 9th, 2009 | 0 comments

Loans in spite of a bad credit history – are you looking for them? Well it is possible get still get a loan if your credit scores are low, but it’s important that you understand what you are getting into.

Typically, if you have very bad credit, you won’t be able to get a conventional loan – loans from banks, credit unions, and other such institutions. You will be limited to the wild west of the bad credit lending world.

What is bad credit lending? Poor credit lending operates on the principal that people who are desperate for a loan will pay sky high interest rates. A lender who gives out loans to people with poor credit takes a fair bit of risk. In the lending world, credit history is what determines a person’s ability to get credit or not. It’s a proven fact that persons with bad credit are far more likely to default on the loan. The make up for this risk, a lender who is willing to lend to bad credit clients will charge sky high interest rates.

Bad credit lenders have been unfairly maligned in the public eye. The common perception is that bad credit lending is full of scammers and companies preying on desperate people. While this is true to some degree – there are a lot of unsavory companies operating in the world of online lending – not every company can be accused of this. There are many reputable bad credit lenders out there.

The difficult is finding them. If you are considering getting one of these loans for very bad credit history, make sure you spend plenty of time looking at different loan offers from different bad credit lenders. Once you select a few offers that meet your criteria, make sure you research the company brand. Ask yourself if the lender is reputable and has good customer reviews. If there are complaints online, then reconsider whether you want to sign a loan agreement with that company. Remember, a loan is a serious contract between you and a lender. If you get a loan then decide you made a mistake, there are serious penalties and fees you may be responsible. In addition, you could be stuck with heavy interest payments for years if you get the wrong loan.

So getting a loan for very bad credit is certainly an option, but the onus is on you to do your homework before committing to any loan.

Poor Credit Solutions

Posted by on Oct 5th, 2009 | 0 comments

Looking for loans with bad credit? You are certainly not alone. The record levels of unemployment and housing crash have brought credit scores to record lows among the population. It can be a major pain to try and get a loan when your credit is poor – but it’s possible. So, how exactly do you get a bad credit loan?

The first think you need to do is look at your credit score and see where you stand. If you don’t know what your credit history is, make a point of either ordering a credit report online (it costs about 15 bucks) or contact the credit agencies to get your credit report mailed to you for free.

You can sometimes find credit errors on your report. If you challenge the errors and they are removed, you could see an improvement in your credit score in as little as 30 days. If you are skirting the boundary between bad credit and decent credit, this may be able to bump your score enough that you can qualify for traditional loan rates. You won’t get the rates that people with stellar credit get, but you won’t be forced into the subprime zone.

If you can’t fix up your credit score right away, then you can still get a loan. The first thing you will want to do is to contact your bank or credit union and see about getting a loan – be it personal loan, business loan, mortgage loan, auto loan, etc. Banks are notoriously picky about giving out loans to people with bad credit, but it’s worth a shot. If you can show you make a good income and have a steady job then you might be able to get a loan from a bank.

If a bank wont’ give you a loan, it’s off to the land of bad credit lending. Now bad credit loans are given out by some lenders to people with very bad credit, but at the cost of a very high interest rate. However, the fact that you can actually get a large loan with bad credit make this loans appealing for a lot of people.

As a word of warning: make sure you do plenty of research about a bad credit lender you are considering. There are plenty of scams out there and some of these lenders have been known to take advantage of people’s ignorance and desperation by charging unfair interest rates. Bad credit loans can be a couple percentage points higher than conventional loans up to 10% more. If you are paying more than that, you are being ripped off!

So getting loans with bad credit is possible  — but make sure you do the research to explore all the options and make the best choice.