Could You Use A Bad Credit Personal Loan?
Do you need a loan? Do you know what your credit looks like? Do you even know how to fix it or what got you here in the first place? If you are like many people you are shocked when you apply for a loan and get rejected, only to find out that your financial world is in true shambles.
If you fit the bill then here is what happened. You spent a lot of money and were bad at making your credit card payments. Whenever you do things like this you will be hurting your long term financial health. But here is what you need to do. Go get your statements from the credit cards and your banks.
To begin to fix your bad credit you first have to figure out where you are really at. Id your financial house in order? If not do a personal audit. Get all your bank and credit card statements. Then go and get a credit report.
The credit report will have all of your outstanding debts according to the credit bureaus. While there is controversy regarding the bureaus that is the system we have right now so you will have to deal with it. Ignoring them will make you pay an inordinate amount of money for any loan you do.
Take the credit report and look for any errors. With some luck your report is messed up due to identity theft and you can go in and fix that in fairly short order even though it will come with legal fees.
After looking at errors it is time to look at your actual debt. If you have one hundred dollars on a card with high interest then pay it off. Pay off all of the small debts then look at the bigger ones and try to consolidate your debt.
Now you should call the lenders and see if you can negotiate a lower rate for your existing debt. If your situation is not too bad you may even get more credit. If so then your credit score will be better and you can avoid getting a bad credit personal loan.
After you have done everything you can to fix your credit you should apply for your loan. If it comes down to it you may still need a bad credit personal loan but hopefully you can avoid that. Now pay your debts on time and use less of it and next time you can get a better loan the first time you apply.
If you fit the bill then here is what happened. You spent a lot of money and were bad at making your credit card payments. Whenever you do things like this you will be hurting your long term financial health. But here is what you need to do. Go get your statements from the credit cards and your banks.
To begin to fix your bad credit you first have to figure out where you are really at. Id your financial house in order? If not do a personal audit. Get all your bank and credit card statements. Then go and get a credit report.
The credit report will have all of your outstanding debts according to the credit bureaus. While there is controversy regarding the bureaus that is the system we have right now so you will have to deal with it. Ignoring them will make you pay an inordinate amount of money for any loan you do.
Take the credit report and look for any errors. With some luck your report is messed up due to identity theft and you can go in and fix that in fairly short order even though it will come with legal fees.
After looking at errors it is time to look at your actual debt. If you have one hundred dollars on a card with high interest then pay it off. Pay off all of the small debts then look at the bigger ones and try to consolidate your debt.
Now you should call the lenders and see if you can negotiate a lower rate for your existing debt. If your situation is not too bad you may even get more credit. If so then your credit score will be better and you can avoid getting a bad credit personal loan.
After you have done everything you can to fix your credit you should apply for your loan. If it comes down to it you may still need a bad credit personal loan but hopefully you can avoid that. Now pay your debts on time and use less of it and next time you can get a better loan the first time you apply.
About the Author:
Tyson knows a lot about bad credit personal loans and personal loans for bad credit.
posted by Credit Counseling at
5:40 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home