These days, it is quite common to find ourselves in a financial crunch. So it comes with no great surprise that some of us are turning to personal loans to get us out of the fix. The problem is: more often than not, it is quite difficult to secure a personal loan with bad credit. Ideally, lending companies and financial establishments will be willing to lend out loans easily if your credit rating is good. But then again, if all our financial ratings are that stable, then we would not really need to secure loans at all.
Because personal loans are considered as unsecured options, lending companies and financial establishments usually provide higher interest rates. Couple that with the fact that you have bad credit rating and therefore classified as a higher financial risk; then you are almost always guaranteed that you will get a very large debt in the end — that is, if you get approved at all.
Fortunately, there are ways and means on how to secure a personal loan with bad credit without falling into more financial debacle. Here are some basic tips you might want to try.
1. Go over your credit reports and check details with a fine toothed comb. Make sure that you look for inconsistencies and other possible aberrations (e.g. double payments, paid loan debts which do not reflect on print yet, questionable credits / debits to your account, etc.) that may be contributing to your bad credit status. Have these immediately resolved with your bank or credit company. Every little point you can garner from this practice will help your financial standing greatly. In many cases, one or two points separate you from acquiring a personal loan from a prime lender.
2. Instead of looking immediately into sub-prime lending options for a personal loan with bad credit, it might be a better investment to seek the services of agencies that will repair your credit score. These agencies can also go over your credit reports and make suggestions on how your can improve your credit score.
Just one hint of advice though: make sure you hire reputable and licensed agencies to ensure that your money and your financial identity remain safe. There are a few disreputable ones who might be after a quick buck, and leave your credit score in a more dire pickle.
3. You can secure a personal loan with bad credit from prime lenders. There are a couple of lending companies and financial institutions, not to mention private lenders who would be willing to provide assistance if you reach a certain credit rating; and this does not necessarily have to be the established credit score that most lending companies and financial establishments follow, either. Lending policies differ from each and every lender, so it does pay to shop around. Try to look for those who are willing to provide friendly repayment schemes too.
4. Hiring the services of a loan officer is also a good idea; or at the very least, you should ask for his or her recommendations as to how you can acquire a personal loan with bad credit. The pro can introduce you to private lenders who may offer easier and longer repayment schemes.
Try prepaid debit card it may able to increase their credit rating when using it. They also don’t require a PIN to access funds with the exception of when you’re trying to withdraw money from an ATM.