Looking at Getting a Bad Credit Loan

If you have a FICO score that is lower than 580 this is termed as having a poor credit score. It is possible if you have such a rating that you will struggle to get a traditional loan. The loans that are possible to get tend to have higher fees and interest rates. An option in this situation is to look for bad credit loans Lakewood or where you are.

 

What you need to do leading up to getting a bad credit loan

 

Look at your credit reports and score

The first thing you need to do is know exactly where you stand in terms of your credit score and what the reports say. There are a few ways you can find that out for free, there are credit card issuers and lenders who can tell you what your credit score is and you can get free credit reports. Keep in mind that even for some cash loans Lakewood there are different scores and you don't always know which the lender will look at.

 

Make sure alternative options are not available

Before you start applying for various cash loans Lakewood you should check there are no alternatives you can use. Bad credit loans come with higher costs, and you don’t want to be struggling to pay for a loan if you do not really have to. Look at friends and family, short-term options like pawn shops, selling something of value, and getting a cosigner who has a good credit score.

 

Be prepared for how much a loan like this will cost

When you get a loan you have fees to pay and interest rates to pay on top of what you borrow and then have to pay back. With a bad credit loan, those numbers are higher because you are more of a risk to lend to. Make sure you understand what you are actually paying and use the APRs to compare loans to get the best one possible.

 

Look for reputable lenders

Not all lenders offer bad credit loans Lakewood so you need to find lenders who do, and make sure they are reputable. A lot of them are online but some credit unions and banks will offer this kind of loan, just in smaller amounts.

 

See if your lenders will give prequalification

When you do not want your action to affect your credit score any further you can look for lenders willing to give prequalified loans. You just have to send some simple information and let them do a credit check but it should be a soft inquiry so it does not impact your score. It is only when you send in a proper loan application that means they have to do a hard inquiry that can affect your scores. Being pre-qualified also lets you see their terms, loan amounts and estimated rates so you can then decide whether to submit a proper loan application. You do not have to deal with the concern over the impact of a hard inquiry, or being rejected.