Just as in legal situations, cases involving bad credit histories came about under extenuating circumstances. This may give you some leeway with a lender. Also, credit reports often have errors. Find them and get them removed. The process is usually simple.
Acts of God may have prevented you from making a timely payments. Medical emergencies are another reason. If the person processing your loan sees that reasons for lapses were out of your control, this could swing approval for a bed credit personal loan in your direction.
Tip Three: Know Your Lender
Just as you would do a background check before you hire an employee, so should you check out a lender before you hire them. The general rule is that the bigger and more solid the lender, the better the deal will be. Security, stability, and the unlikelihood that they are scam artists are what these lenders have to offer.
While some of the smaller unknown loan groups may offer fantastic deals, some even without collateral, do not walk into a deal with usurious interest rates and other fine print calamities. However, there are smaller lenders who do provide an honest service.
Tip Four: Have a Handle on the Payments
Your income to debt ratio will figure almost as high as your credit history when it comes to landing a bad credit personal loan. After all your usual monthly obligations have been met, do you have enough left over to take on another payment? This is for your own peace of mind and also improves the chances for approval.
Of course, having a steady income and the wherewithal to cover the repayment terms is a must. If that solid base is not available, you could try to show the lender how using that money as an investment will give good return in the not too distant future. Of course, the plan will have to be feasible.
Tip Five: Read the Fine Print
Again, check your vendor. Checking Better Business Bureau listings can help. Consider: Who would lend to a person with bad credit? Either they are going to be an honest lender who will charge a somewhat higher than market interest rate because of the risk, or they will have a little trap designed to catch the desperate or the unwary.
Always read the fine print. Especially watch out for gradually increasing interest rates, or outrageous late fees or fees for other little things. Always be a cynic, you owe it to yourself to look for the dark side of things when shopping for a bad credit personal loan.
Tip Six: Make the Loan Work for You
Do not borrow more than you need. Shop around for the best interest rates. This loan is made to get you out of a bind, not drag you deeper into a debt hole. If you are taking the loan to pay off a bunch of other loans, be sure that your monthly payment is less than the sum of your usual payments, and that the interest is no higher than the median of your past loans.