Loans for People with Bad Credit Historby Michael Griffin Michael
If you have a bad credit history, getting a loan is going to a difficult proposition. Most banks and other lenders will simply wave you away, and every time this happens it makes the chances of getting a loan even more unlikely. Every time you apply for a loan, credit agencies are told about it. And every time are rejected, credit agencies put another black mark against your name.
However, loans for people with bad credit history are available – if you know where to look and how to plan for an application.
You may have heard the saying “It takes a lifetime to build a good reputation, and five minutes to destroy it.” It’s the same with a credit history. It’s surprisingly easy to fall foul of the credit agencies. Understanding how you can so easily get a bad credit history will help you avoid doing so, or repair your credit rating if it needs repairing.
If you’ve ever missed a payment date on a loan or credit card bill (and who hasn’t?) your credit history will be given a black mark, and if you are continually late in paying the black marks quickly add up to a bad credit history. It’s possible to repair a bad credit history, but this takes time: and you might not have time on your side (for example if you have found a home you want to buy).
If you understand what it is that lenders look for and their main concerns when lending to people with a bad credit history, you’ll be in a stronger position when searching for a loan.
The lender’s concern is that you won’t be able to keep up payments and eventually repay the loan. In order to convince them otherwise, you’ll need to show that you have ‘mended your ways’, and that your earnings and spending patterns will allow you to service the loan for which you are applying.
The best way to prepare for a loan is to get a copy of your credit history. You’ll see exactly what the lender sees. Armed with this information, you can either start to repair your credit rating or prepare reasons why your credit history is bad.
The biggest mistake that people with bad credit history make is approaching the wrong lenders. The big banks are the lenders who are most worried about bad credit, so you should avoid these. You’ll need to find a niche lender that specialises in loans for people with bad credit. Often these are backed by the big banks, but they operate in a more relaxed lending environment. They are more likely to advance funds for personal use or home purchase.
Here are five ways in which you can improve your chances of getting a loan, even if you have a poor credit history:
- Take steps to repair your credit report
- Be prepared with answers to tough questions
- Be honest on application forms
- Search with non-bank lenders, and don’t make multiple applications (doing so will harm your credit rating further)
- Use the services of a specialist who has access to a wide variety of lenders and experience in the bad credit history market
Get specialist advice on SMSF Loans With Bad Credit from SMSF Loans Co.
Created on Apr 25th 2022 09:03. Viewed 57 times.