Bad Credit Loans – Unconventional Wisdom
Getting a loan when you have bad credit is difficult at best. Almost all of us know this and that obtaining bad credit loans is getting increasingly difficult especially with the recent credit crisis that sent lenders into panic mode. In this article I will show you some unconventional tips that you can use to obtain bad credit loans even if your credit rating is classified as bad.
The first thing that needs to be determined is if you actually need the loan in the first place. All too often we look for the loan simply to cover our need for material purchases and our shopaholic ways. I blame all the bad credit loans guaranteed approval advertisements out there that are simply screaming at us all the time to buy things, even if we can’t afford them. You have to really bite the bullet and ask yourself if you really need the bad credit loan. You should only apply if it is for important things like children’s education, utility bills and actual emergencies. Anything else, you are more than likely to regret it later especially with the higher interest rates that the loan will attract.
Another thing is to look at putting off paying for anything that you might need the bad credit loan for. This is actually one of the best tips that have really helped people. Even if you manage to put off paying whatever you need for just a month there are huge advantages to be had. The first and most obvious would be that you might have accrued enough money that you might not need a bad credit loan at all. You will also save yourself for the month’s interest rates if you manage to put the payment off for a month. You will be able to give yourself enough time to think about how best to deal with whatever payment that you settle with the loan. Lastly you will also buy yourself at least one month to rebuild your credit history as best as you can before actually applying for the loan.
There are also few things that you can do to keep access to bad credit loans better even if you have a bad credit history. The first and most important thing is to keep your number of loans per year low. It is a little known fact that those that are in the habit of taking out loans will actually have their credit rating affected by this act alone. It will actually be listed in the credit report the number of loans that you take out over the years and it has been a proven fact that lenders don’t fancy customers who constantly take out loans. By taking out loans, you are also allowing lenders to access your credit report. Your credit score will actually be reduced by excessive numbers of lenders making queries.
Another useful tip that we think isn’t given enough attention is for you the loan applicant to know your own credit score as much as possible. There are multiple benefits to this, the first and most obvious is for you to understand the gravity of your own credit score and report. All too often most of us go around without actually knowing our credit score and how our actions are impacting it. This is until you need to get a loan when it is already too late to change anything that you did previously and the harm has already been done. With your credit score in view you will often make changes that you would otherwise ignore about the way that you handle your finances. The current legislation is as such that you can obtain your own credit report up to three times per year, one report from each of the credit reporting companies.