Archive for September, 2010
A client once asked me: I need a 4000 loan but have bad credit, what should I do? This is not an uncommon situation for the present state of the lending population. There are so many people having problems with not only their credit but also making ends meet in the first place. And the problem stems from the lack of useful information out there. I mean personal lending isn’t really a focus in school and it really should be. I had a friend whose brother signed the back of a personal cheque and not the front because he had never been taught how to write a cheque from his own chequing account. And with credit card companies going after new university students that are 17 now by the way – it’s no wonder way we are in the state we are in.
Bad credit 4000 loans are neither uncommon nor impossible to get. It is better to think about you end result rather than the lending product you want to qualify for. If you are after just a $4000 loan than you can apply for a personal unsecured 4000 loan, but the bank will defiantly try to push a unsecured line of credit instead (depending how bad the bad credit is). Revolving credit like credit cards and lines of credit are favoured by lending institutions because they make more money on them – as it’s rare for a borrower to never use available credit due to ease of access. Bottom line the longer you are in debt the more the bank makes. It really comes down to how you ended up with bad credit in the first place, when choosing the right lending plan.
The nice thing about a $4000 bad credit loan is there would be an end date – 1 or 2 years for example. Getting an unsecured 4000 loan or a personal loan for 4000 would be an example of what the bank could do, but they won’t lead with that option. If you do option for the loan with bad credit then you may consider asking someone to co-sign with you to boast your chances of success in qualification. This will usually do the trick and can help you start to build better credit to boot.
Another point in your corner is that 4000 dollar loans are a smaller amount of money. This means the lending institution will see it as a lower risk loan. This is always a good thing because getting qualified for a loan or any lending product is a case of being a reasonable lending risk for the bank and the amount of money is one of the bigger factors.
As you can see getting four thousand dollars doesn’t have to be an uphill struggle even if you have poor to bad credit. The real point to focus on is how you want to structure your borrowing. Whether you go with revolving credit or structure loan – the next time you say “I need a 4000 loan but have bad credit” you will have a better understanding of your options.