Your Guide To Bad Credit Loans

bad credit loansHaving good credit can be instrumental in you being able to get the things you want. Anything from a new car to a new home or even a boat usually hinges on having good credit. But what if you’ve made a few financial mistakes along the way and now your credit is less than stellar? Fortunately there are bad credit loans available to those with less than perfect credit who need some money for whatever reason that may be. Most companies look at your credit score when they determine whether or not they will lend money. If your credit score is low, it can be a lot harder to get a loan, credit card, automobile, or other form of credit.

One way you can attempt to get a loan is through something called peer to peer lending. This form of lending does not involve a bank, but instead involves other people who might be willing to lend you money as long as you pay it back with interest. Sometimes, a group of several people will “go in” together and chip in towards the loan. There are many websites that have this available but if you apply, be sure to tell your story and explain yourself. For example, if you have a steady job that you’ve had for a long time, let people know. If you are working towards rebuilding your credit, let them know that as well. It may take some time to be approved or get a peer to peer loan, but you will not have to deal with banks or credit lenders.

While it seems a little discouraging, many people opt to borrow money from their family members. If you decide to ask someone in your family for money, offer to draft something up in writing and get it notarized. For example, you could work out a deal where you pay X amount of dollars each month at a certain rate, and sign this so they have some kind of paperwork showing you’re committed to repaying them. It might be uncomfortable to ask, but you never know until you try.

There are ways you can rebuild your credit so you will have a better chance of getting a loan in the future. First, clean up your current credit report. Get a most recent copy of it, and see what is on it. If you find something you need to dispute, you should do so right away. Next, pay all of your current bills on time and if you can pay more than the monthly minimum, you should do so. Try really hard not to use more credit cards and build up more debt. Instead, work towards paying your current debt down. Getting rid of those pesky credit card balances is a great way to rebuild credit. If you have accounts you are not using, you can attempt to get a balance transfer at a lower interest rate to help you pay them off faster.

If you’re trying to get a car, then you’ll definitely want to check out logbook loans: