5 ways to get a loan with Bad Credit
Having no or bad credit can hold you back and prevent you from getting approved for a loan. Your bad credit makes you a high-risk borrower. As you already know, lenders put a lot of weight on and rely on credit scores to determine if a borrower qualifies and the rates at which the risk of lending will be an acceptable risk. To understand how your credit score effects your loan options, it’s best to start by getting your hands on a current copy of your credit report. There are several websites that provide you a copy of your credit report online for free. The one I personally prefer and use is www.annualcreditreport.com, you may also be able to get a copy from your credit card provider. You need a copy of your report to review the accounts that are currently reporting under your name and their accuracy. If you notice any discrepancies such higher balances, higher minimum payments and accounts that are closed, call that lender and the credit bureau that is reporting it immediately. All these factors may have an adverse effect on determining your risk factor as a borrower. Avoid common mistakes that lead to bad credit;
- Making multiple late payments. A 1 x 30 (30 day late mark) is not nearly as bad a 2 x 30 on your report.
- Only making minimum payments instead of paying down your balance when you can.
- All payments are important. In today’s digital world, all accounts are somehow connected.
- 1. Apply to Credit Unions
- 2. Reach out to family and friends
- 3. Get a co-signer
- 4. Turn to Personal Loan Lenders
- 5. If there is no other way, consider Secured Loan