If you have no credit, bad credit, or have filed for bankruptcy, don't waste your time applying for a unsecured personal loan from any of the normal financing and lending companies in your area or over the internet.
And by the way, this applies to you even if you had applied for bankruptcy over 7 to 10 years ago, and the record of your filing for bankruptcy is still on your credit report.
Here are some possible solutions:
First you need to order a copy of your credit report. You need to know what is on your credit report so you will know where to get started. Applying for credit when you already have bad credit will only reduce your credit score.
The Easy Way To Clean Up Your Credit Report
One of the easiest ways to clear up your credit is to look for errors on your credit report. Then write the credit agencies to have the information removed.
Any negative accounts that have been on your credit report for more than 7 years can be removed just by sending the credit reporting agencies a letter.
Next, if you have a old account that has a outstanding balance, you could call that company and offer a lower amount to pay off that account. Many time companies will accept a lower payment to close out and settle your account.
Rebuild Your Credit Options:
If you need a new computer system one way to rebuild your credit is to purchase a new computer system that offers a delayed payment plan. You can not be turned down for this type of financing program because they do not check your credit, and as long as you have a checking account, you are automatically approved. Most companies will require a down payment or you would have to make a few payments on time before they would release your new computer system.
This is a great program because it will help you to rebuild and restore your credit because these types of financing programs will report your payments to the credit bureaus.
Bad Credit Personal Loans
I am sure you have heard of payday loans or cash advance loan programs. If you have a checking account that is in good standing with your bank and you are employed, you should be able to get approved for a $500 payday loan.
Payday loans will not help your credit, but it is a way to get fast cash in just a few hours. Most payday loan programs will want there money back in 2 to 4 weeks and they will collect your payments from your checking account. This is not the best choice to get a loan, but it you need fast cash, it could be a reasonable option.
Credit Cards
Another way to restore your credit is to apply for a credit card program that offers a low line of credit. Normally these types of credit cards will offer to you a line of credit of about $500.00. They will offer to increase your line of credit, once you have used your credit for 6 months and have made all of your payments on time.
Car Loans
Anyone can get approved for a car loan, if they are employed. Car loans will not improve your credit because the financing companies know that if you have not made your payments on time, they will just come by your house and take there car back. Plus they will keep your down payment.
Good credit - it means many different things. There are a number of advantages to having good credit; these are pretty obvious. While getting and maintaining good credit involves a high degree of fiscal discipline and making payments, it is well worth the effort. So how does bad credit affect you? What are the disadvantages of having bad credit? This is a question which it takes more than a few words to answer.
Credit and lending institutions use something called a FICO score to determine your eligibility for ANY financial request. Typically a score of above 720 is considered excellent and will qualify you for just about anything you ask for. When you go under about 650, it gets patchy for most consumers.
Who decides your FICO score? This is done by the "big three" credit reporting bureaus, Transunion, Equifax and Experian.
Financing opportunities A bad FICO score will prevent you from obtaining financing in every market. Try obtaining a mortgage to buy a house and you will be hard pressed to get that loan. The same thing applies to personal loans and car loans. Basically, a bad credit history tells lenders that you are a high risk and can't be trusted or are otherwise unable to pay the loan back in a timely manner.
Interest rates The real problem with a bad credit history is higher interest rates.
Your interest rate will largely be determined by your FICO score. A good score will secure you low interest rates; 7% to 9%. However, having a bad credit history means that while you may still be able to get financing, you will be paying a much higher interest rate.
I personally had a situation some years back where I was applying for a debt consolidation loan. I had a credit score which was not what it should have been and as a result, I was offered a loan with a 24.99 interest rate! This is $25 per $100 dollars of outstanding balance or a whopping $250 on my $1,000 balance!
Personal health and well being While the financial burdens placed on your by virtue of having bad credit are arduous enough, there is also the mental strain to be considered. If you have bad credit, the odds are that you are in debt. The stress of this can really take its toll, even on the hardiest among us.
Stress can cause depression, lack of appetite and trouble sleeping among other stress related difficulties. While it is important to look after your finances, your health is even more important.
Conclusion Having bad credit can make many parts of your life a struggle. Buying a home, paying for college; all of it will be more difficult if you have a hard time obtaining financing. Everybody wants to have a nice life for themselves, but bad credit can prevent us from having what we want.
Bad credit can even take a toll on your health and cause you many problems. High blood pressure and even heart attacks are not unheard of; so be careful with your credit and take care of it - you'll be glad you did.
Both Bestyet77 & Steven J. Talrechi are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Bestyet77 has sinced written about articles on various topics from Adware, Debts Loans and Make Money Online. My name is Larry Kearney and I have been working in the credit and loan related business for over 15 years. Visit our site . Bestyet77's top article generates over 27100 views. to your Favourites.
Steven J. Talrechi has sinced written about articles on various topics from Bad Credit Loans, Credit Card Offers and Free Credit Report Score. Steven J. Talrechi has been reporting on credit and credit practices for 12 years. He specializes in assiting others with and obtaining a. Steven J. Talrechi's top article generates over 14800 views. to your Favourites.