Less Than Perfect Credit Personal Loans
If your credit is less than perfect and perhaps
even below the average credit score rate, you may find it difficult
to obtain a loan to purchase that car you want, pay for your child
s education, fund your daughter s braces, or finance a whole host
of other projects you have in mind. Clearly, if you are approved,
it may come only after some wrangling on your part. Keep reading
for some tips on how you can achieve a positive outcome with your
Expect to Pay More - When borrowing money with
less than perfect credit, expect to pay more for a loan in the form
of a higher interest rate. That great 4.9% loan offered to their
best customers may not be available to you, but a not so awful 7.5%
rate could be what you are offered.
Expect to Put More Money Down - In order to be
eligible for some loans the lender may require you to put more money
down. Five or ten percent may not be good enough, while twenty or
twenty five percent down could open up some doors. When a lender
sees that you are willing to bear some of the risk, he is more likely
to give you the green light on your loan application.
Expect to Do Some Explaining - Every lender will
obtain copies of your credit reports before deciding whether to
do business with you. If there are errors on your reports they could
work against you, therefore it is important to explain these errors
to the creditor and contact the credit reporting bureaus to fix
Expect to Learn Patience - With a less than stellar
credit rating, you will have to gain patience in order to be able
to withstand the possible rejections coming your way. If you are
turned down by one lender, consider going to another lender and
applying for a loan with them. Chances are you ll be better equipped
the second time around, but you may have to do some additional explaining
with them such as why you were recently turned down for a loan.
Many lending decisions are based upon things you cannot immediately
change such as your past credit and current financial condition.
However, by meeting with a lender face to face you stand a better
chance of being approved for a loan than obtaining a loan from someone
who isn t known to you.
Manage My Credit -
a website devoted to providing advice on managing your credit and debt