Getting Loans With Bad Credit

Bad credit can prevent you from doing a lot of things. It can keep you from being able to rent a home, or from buying a car. It can definitely prevent you from purchasing a house. There are so many things that depend on a person having good, or even decent, credit. Getting a loan with bad credit is virtually impossible.

Why Is My Credit Bad?

Ask yourself why your credit is bad. That’s always the first step. You need to figure out why you ended up in this position, and what you can do to get out of it. A lot of times, medical bills put people into major debt, and ruins their credit before they can get them paid off. Other times, it’s things such as student loans. There are also times when bad credit is simply because of poor choices.

What Can I Do To Fix It?

There are many things you can do to fix it. The first thing you need to do is get a copy of your credit report. This is going to be one of the most important things you can do. You need to go over it very thoroughly, and make sure everything is accurate. If you find something that isn’t yours, or isn’t accurate, make sure to dispute it right away. You don’t want things on your credit report that don’t belong there.  Once you have your credit report and have made sure everything is accurate, you need to decide what to do. One thing you can do is look into a consolidation loan to pay off all of your debt, and have just one monthly payment. This can be hard to do with bad credit, but thankfully there are bad credit loans out there! The thing to keep in mind with these loans, is that the interest rate will be higher. This is because of the higher risk involved with giving someone a loan, that has bad credit.

To help your credit situation, you can always look into getting a prepaid credit card. These are nice because you only spend what you load onto the card! You don’t have a monthly payment, and they help improve your credit. Now, some prepaid credit cards will offer you the option of giving you an additional credit line, once you load a certain amount onto the card. For instance, if you load $200, the card company might extend you an additional $200 credit limit. Yes, it’s a small limit, which is what you need when rebuilding your credit.

My Experience

I, too, have suffered horrible credit. My husband and I worked hard to get where we are today, which is still not perfect credit, but so much better than it ever was! We do have credit cards, but we are never late on the payments, and we were just able to purchase a new car with decent interest rate and relatively low payment. It can be done, but it does take time and effort. It isn’t going to be an overnight process, and will not be easy. But keep at it, and it will get better!


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