Loans for People with Bad Credit

Posts Tagged ‘Credit’

Is your credit score below 600? If it is, you have bad credit. Lenders might deny you loans because you are considered “high risk”. If they do qualify you for any of the loans for people with bad credit, they will most likely charge a high interest rate. So how does one begin the journey to fixing poor credit?

When was the last time you checked your credit score? It’s good to check every six months – the report (without your score is free once a year and you have the option of arguing whatever point is on the report that might be hurting your score. However, you should know that if you check your credit score “too much”, you could lower your credit score.

Bad credit can be blamed on several things. First and foremost, you should look at your own spending habits. Do you but a lot on credit? Do you have high limits AND high totals? Have you made a late payment? Most people don’t realize that late payments can influence their credit score.
Is it possible to fix a bad credit score? Yes. However, it will take time. The first step is getting rid of your debt. You don’t have to totally eliminate it. Just lower it a bit so your debt to income ratio isn’t so high. Pay your bills on time and pay a bit more than the minimum payment to your credit card companies. With a little work you move out of bad credit and into what’s considered good credit.

A little known secret: if you know someone with good credit, become an authorized user on one of their credit cards. Then, they’re credit history becomes your credit history. This can be tricky, though, because as an authorized user, you can technically purchase using their card. A person with good credit may not want to share their credit card with a person with bad credit.
With a good credit score (above 600), you can negotiate with some lenders to get a better interest rate. Be courageous and be informed. You never know what will happen until you begin to ask questions.

When an emergency happens – such as a needing to care for a sick or dying loved one, natural disaster hits your town, your much-needed car breakdown, or a tree falls through the roof of your house – is when you need your credit card or other means of going into debt quick.  If there’s no wiggle room for the inevitable crisis, you’re in trouble. Better to prepare for the crisis BEFORE it happens.

Good credit is like the ancient city of Rome; neither was built in a day. It takes time and patients to fix your credit. With a good credit you may be able to buy the house or car of your dreams. You will be surprised who will want to lend you money when you have good credit.

When it comes to improving your credit, the responsibility will fall completely on your shoulders.  With just a few simple steps, your credit can be improved, but it will take some work on your part.  A good way to begin this process is to look into debt consolidation loans.

You will want to contact each of the major credit bureaus and request a copy of your credit report.  The reason you want to check with all the major bureaus is not every creditor reports to the same credit bureau.  Where you apply for a debt consolidation loan will check your credit score through one of the three major credit bureaus.

By getting a copy of your credit report you can check it over with a fine tooth comb.  Making sure everything that is on the report is accurate.  By my own experience, I checked my credit report and found a health club membership that has been cancelled for a valid reason, but the health club continued to report my payments as delinquent.  The steps I took were simple and made a world of difference in my credit score.

The firs ting I did was to contact the health club, again.  When they gave me the run around, I contacted the credit bureau that they reported to.  What I was advised to do was to write a letter to the credit bureau disputing the bad mark.  That s exactly what I did.  In the letter I provided them with the information of the steps I took and even provided the bureau with a copy of my contract, showing them that I had met the necessary requirements to cancel my membership.  Once they received my letter, it was attached to my credit report and with 6 months the negative mark was completely removed.

If you do not have the time to address this yourself, there are companies who can do this for you.  If you have the money to pay someone else to do this, make sure they are a reputable company and will guarantee their work.  Another important aspect to consider when having someone else do this for you is to make sure you provide them with accurate information.  Nothing will damage your credit more than to have the wrong information attached to your credit.

Although it can be a long process to get this done, it can be well worth it when you consider it is a reflection of you.  These days so much rides on your credit report.  Your job, your insurance and even your utilities.