Category: 

What Are the Best Tips for Getting a Loan with Bad Credit?

Article Details
  • Written By: Felicia Dye
  • Edited By: Melissa Wiley
  • Last Modified Date: 13 November 2018
  • Copyright Protected:
    2003-2018
    Conjecture Corporation
  • Print this Article

Getting a loan with bad credit may be easier if the funds are sought from a source other than a bank. If it is necessary to apply for a bank loan, a person should make sure that his credit report is accurate. It is best for him to save money in a local bank and offer collateral when he applies. If a co-signer with good credit is available, this can drastically impact eligibility favorably. As a last resort, a person may need to seek the funds through a loan designed for individuals with bad credit.

It is not a secret that getting a loan with bad credit can be very difficult. It may be possible to obtain the needed funds without seeking them from a traditional lender, however. Individuals commonly overlook the possibility of borrowing from personal sources. This may be much easier and in many cases can result in significant savings. If personal acquaintances are not able to assist, it may be a good idea to consider obtaining the funds through a peer-to-peer lending service.

If a person must go to a traditional financial institution, he should put forth effort to appear as attractive of an applicant as possible. To do this, he should first obtain copies of his credit report and review them. Any inaccurate information should be immediately disputed, and the necessary effort should be devoted to securing the needed changes.

Ad

A person whose aim is getting a loan with bad credit can increase his chances of being approved by having money in the bank. If the individual does not have money, he should begin saving. He may want to consider doing this at a local bank. These institutions are more likely to assess loan applications on an individual basis.

Once a notable amount of money has been saved and the individual is ready to apply, she should try to meet with the loan officer in person. It may be best to offer some collateral to get an approval for a loan with bad credit. If possible, that collateral should be something other than the savings that a person has acquired. It may be real estate or a down payment from a different source, for example.

A loan seeker can increase her chances of getting a loan with bad credit by getting a co-signer. It is important to make sure that the co-signer does not also have bad credit. It may also be beneficial to apply for the loan from a lender with whom the individual with good credit has borrowed before. If all other options have been exhausted without success, the individual may want to consider applying for a loan marketed to individuals with bad credit. This is considered a last option because these loans generally have unfavorable terms, such as high interest rates.

Ad

Recommended

Discuss this Article

Post your comments

Post Anonymously

Login

username
password
forgot password?

Register

username
password
confirm
email