- Personal Finance
How to get a loan with bad credit. Top money tips for 2016
A bad credit reputation doesn't mean that you can't get a loan. It's only slightly more complicated and you must find the perfect money lender for you.
First, you already know that your credit score affects your interest rate. The bank, or any other lender, doesn't want to take risks. If you want a loan even if you have a bad credit reputation, you should expect to:
1. high interest rates
2. more collateral to secure that loan
3. less money
4. limited options
But even if you have a bad credit reputation (because you missed repayments in the past) and your credit score is bad, the lender will take into account your job, your salary, stability and other assets, such as a property.
If you're thinking on a loan, even with your bad credit history, you need a serious money strategy. Because this time you don't want to miss any more repayments. If last time you failed to keep up with payments, now that's not an option. You need to be disciplined and think before accepting the challenge of a loan with bad credit history.
Also, a bad credit loan isn't a long term solution. You'll pay a high interest, so the financial pressure for the next 3-4 years is huge. If you don't have any solutions left and if you're sure that it's an investment that you can quickly cover, you could take into consideration a loan with a bad credit reputation.
The good news is that after you start paying it back you will be on the path to repairing your credit history. But, keep in mind that the main disadvantage of bad credit loans is that interest rates are normally very high relative to standard loans. If you have some money problems, the interest rate can be a hassle. You have already shown that you didn't managed so well your personal finances. You certainly need some money tips to stay on top of you bad credit loan.
The best way to avoid a bad credit loan is learn how to save money:
Are you considering a loan with bad credit history?
HOW TO IMPROVE YOUR CREDIT SCORE
- Make a plan to pay down your credit card debt at a faster rate
- Transfer your credit card balances
- Dispute credit report errors. Check your credit report for errors! One simple mistake can cost you money!
- Get a credit card
- Uder-use your cards
- Raise your credit limit.
- Get a family education on best practices
- Rethink an annual fee card
- Be buddies with your card issuer
- Learn about other card benefits
9 TIPS BEFORE CONSIDERING A LOAN WITH BAD CREDIT:
- Look for viable alternatives: Borrow from family or friends before considering a loan
- Leverage your assets
- Consider Peer-to-Peer Lending - the online platforme that allows you to borrow directly from another individual rather than from an institution.
- Visit a credit union
- Get a co-signer
- Secured loans
- Loan process for bad credit
- Find a transparent lender
- Arm yourself with information