The Do’s & Don’ts
Planning to acquire a personal loan but the problem is your bad credit situation? Finding the right lender is a difficult matter but once you find that, you’ve got to give your best shot for it.
Here are the rules you should consider when applying for a bad credit personal loan:
1. Carefully check your credit report.
Before going to the bank to apply for a personal loan, you should request credit reports which show your credit score. Of course, you want to make sure you can meet at least the minimum credit requirements imposed by the bank.
Common sense won’t work so don’t do the same mistake all over again as others did.
2. Know your FICO score.
Determining your FICO score can assist you negotiate a better deal of getting lower rates.
IMPORTANT NOTE: A bigger deposit is required when you have a lower credit score. The bank may also ask for a personal owned car or a co-signer as additional collaterals. It can guarantee a 100% bank approval over your bad credit personal loan application.
BUT WHAT IF YOU DON’T HAVE AN ADDITIONAL SECURITY OR COLLATERAL?
Ever heard of what a loan shark is? Loan shark is a common term used when you have a low credit score and banks would likely charge you the highest allowed interest since they know you can’t go anywhere else. To have a low credit score is to be on a VERY WEAK POSITION.
There is still a solution, though no other choice but it is. Increase your credit score!
Here are the actions you can take:
a. Any inaccuracies on your credit report must be repaired.
b. Reduce your debt to income ratio. Avoid over spending!
c. Ask a friend or family member credit card holder who may be willing to make you a co-signer.
d. Add your rental history to your credit report if you’re renting.
3. Make a Bank Research and Comparison via email or phone call or via internet information.
Make a research before you apply for a bank loan. Write down all necessary information such as monthly payment requirements, interest rates, length
of time before the bank lends you money, and the maximum amount they’re willing to lend you.
1. Don’t just consider the interest rates.
2. Don’t apply for a loan unless it’s for an emergency.
3. Don’t borrow more than what you needed.
Be ready now to make your bad credit personal loan with confidence of getting approved.
Read more here for more details – http://www.newhorizon.org/credit-info/acquiring-bad-credit-personal-loans/
Are you looking for personal loans? Here is the list of personal lenders for people with bad credit – http://www.newhorizon.org/Info/personaloans.htm