You never want the day to come that an emergency expense strains your finances so much that you have to get a personal loan to cover it. It’s even worse if you have a poor credit report and have to shop around for personal loans for bad credit. If you find yourself in this situation, don’t make things worse by doing anything rash or rushed, no matter how badly you need help and money. Keep reading to learn ten things to do when you are looking into personal loans for bad credit to make the best of the situation:
1) Have some physical collateral ready: One of the simplest and earliest forms of personal loans that involve no credit are taking personal possessions to a pawn shop. They hold the item for a set period until you repay the loan, or if you don’t, they get to sell the item to recoup the money they lost.
2) Check your car mileage and title: Many personal loans for bad credit involve signing over a car title in exchange for a lump sum of cash and a repayment plan associated with them. There are usually requirements involving cars under a certain age and mileage along with demonstrated proof of income.
3) Ask if personal references are necessary: A select few lenders are going to require numerous personal references listed on your application. Make sure these people are willing to vouch for you and possibly put up with collection calls if you fall behind on your loan
4) See if they do an actual credit check: Not every lender does credit and background checking the same way, so not every check shows up on your credit report. Too many hard checks in a short period can drive down your score.
5) Know your credit score: Find out what your actual credit score is. You might just be surprised to find out that it’s not as bad as you think, and you can get better loan possibilities.
6) Inquire about their cutoff: Many bad credit loan places have a certain minimum credit score they simply won’t loan to if someone is at it or under it. If they can tell you what their floor is in advance and you’re under it, you can avoid wasting time and having a needless credit check hit your report and drive down your score.
7) Know what kind of repayments you can afford: Go over your monthly income and expenses and determine how much money you have free to pay back to a lender. Don’t assume things will be fine just because you’re taking care of the crisis of the moment. Transferring a car repair problem or medical bill into a personal loan you can’t handle just kicking the can down the road, and it often turns out to be a rustier, sharper can when you find it again.
One of the recommended loan company is Zippy, you can find more information about them here: http://mypersonalloansreviews.com/zippy
8) Don’t let the interest rate fool you: Some places that offer bad credit personal loans are a little tricky in how they present their interest rates. Whereas many places might show their interest rates as the annual rate, some duplicitous establishments will list it as monthly, weekly, or even daily to make their numbers look better. Always read the fine print. And then read the fine print again.
9) Know what your potential refinancing options are down the road: If the loan is going to last a while, see if you can get your credit score up while you pay it down. Making timely payments on the loan itself help rebuild your credit, and if your score goes up enough, you might be able to either refinance the loan into better payments or even open a credit card to pay off the balance, so you have a lower interest rate.
10) Shop around: Many of these steps are about avoiding the worst deals out there, but as you hunt, you’re going to turn up good leads that don’t get stricken off your list. Take a hard look at the remaining few possibilities and go over their details thoroughly looking for the silver lining that makes one an obviously better deal than the others. It never hurts to ask for a manager and see if you can negotiate a better deal than what they initially offer.
As stated earlier, you never want the day to come that you have bad credit, and you certainly never want the day to come that you need to shop around for personal loans for bad credit. However, if you do, use these ten steps to find the best possible way out of your situation so you can start turning things around.
For reviews of some personal loans available online, check out: http://mypersonalloansreviews.com