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1 year, 9 months ago

How to get a loan with bad credit?

How do I get a loan even if I have bad credit? I want to take out a home and/or car loan from my bank but I have pretty bad credit and a poor credit score. How can I go about getting a financial loan even if my credit is weak or poor? Where can I go? What should I stay away from?
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bovandy | 1 year, 9 months ago
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I would say the top way to get a loan even if you have bad credit is to employ a cosigner. As a general rule a cosigner with a very good credit rating will enable a bank to feel better about giving you a loan because basically, the cosigner has said that if for whatever reason you are not able to pay back the money you are owed, they can go to the cosigner for the money that is owed.

Of course there are rules and there are also limits to exactly how much a bank will give you even if you find someone with an almost perfect credit score and with a decent amount of money or they may not be accepted as a cosigner for your application.
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iklilian | 1 year, 9 months ago
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Hi @culverc, to get a home or car loan with a bad credit, the first place to go would be your bank. If you have been banking with them for a long time, you will have a better chance of obtaining a loan. The banks usually give two loan options for bad credit; these options are either a restricted credit card or an unsecured personal loan. You’ll also have to weigh the loan options first. Both options have high interest rates attached to them and could put you into further debts.

To make good use of any of the two loan options you have to make sure that you borrow only what you are sure you can pay back. You should also try to negotiate any amount or interest rare that is given to you, so that you can get a monthly payment that you can afford.

During your application process, make sure you have all the necessary documents (Social Security number, Driver's license , Evidence of assets and Income. It is very important to read the ‘hidden lines’’ in the documents and ask any questions you do not understand. This would help you avoid any surprises.

Try to avoid borrowing what you cannot pay back.
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ginamichellesattic | 1 year, 9 months ago
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Direct Lending Solutions is a company that finds you a lender when you have bad credit. They act as the middle man and can find you a loan. The catch? Usually you have a higher interest rate, but if you need a ]home or a car and you have bad credit you will run into the high interest rates wherever you go.

You can eliminate the middle man and just call around yourself. When we purchased our first home our credit was not that great. It did take me several phone calls and our bank turned us down as well, but I did find a company and we got approved for our first loan.

Do not get frustrated. Many people do not have wonderful credit, so trust me, there are more companies than you would think that give loans out to people with bad credit.
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mozammel | 8 months, 1 week ago
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I know that some credit card company or a bank can make these loans. Follow the guidelines below to determine whether a credit card assistance company is legitimate or not:

• Confirm company’s license.
• Verify the credentials of the company.
• Check company's history.

Get more information at below link:
http://www.eliminate-creditcard-debts.com/credit-card-debt-assistance.html
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amybrowne | 1 year, 9 months ago
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I too would go to your own bank first for a loan, as they know you and can sometimes see past a credit report. I am not saying they will ignore a bad credit score, but they will consider your bank account as they have access to that. Your bank that you have been dealing with for years also knows you personally and that can be your greatest asset here.

Of course, I am from a small town of less than six thousand people where everyone knows each other. I deal with a credit union that I joined 15 years ago, because my parents, siblings all had accounts there. One of the first account holders was my grandparents, when they are young. My bankers know me personally and even with poor credit, I know they will work with me.
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bobfirestone | 1 year, 8 months ago
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Six words: Cash Flow and Big Down Payment.

If you have a big down payment and enough money coming in every month you can finance anything good credit or bad.

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jasonf | 1 year, 8 months ago
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If you are desperate for the loan and your bank turns you down, then there are companies that would consider lending you money even with bad credit. But be prepared to pay higher than normal interest rates. You would need some sort of collateral to be considered. This includes a full-time job that you have had for a certain amount of time (this amount depends on the lender).

If you are not in a rush to get a loan then try to rebuild your credit by getting a secured credit card and using it wisely. Use the card but ensure you pay the balances promptly and on time.

Always check your credit report to ensure that there are no errors. If there are any outstanding debts, try to contact the company to see if any arrangements can be made. This may improve your credit score enough that you will be able to get a loan.
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