DO’s & DON’Ts

On Acquiring a Bad Credit Personal

Loanby: www.newhorizon.org

If you are in need of a personal loan but with bad credit, you can turn to lenders who provide loans for those who are credit challenged.

But before you do, here are the list of do’s and don’ts that you must remember.

You need to know your exact credit standing prior to submitting your bad credit loan application.

Do check your credit report.

WHY?1. It gives you the chance to correct errors in your

report. - It is common for consumers to have a lower credit score than they should have because of inaccurate reporting.

2. Knowing your FICO score will help you negotiate for a better deal.

- Yes, even if you are credit challenged, requesting for a lower rate is still worth a try. Watch out for loan sharks who may try to tell you that have an extremely low score and therefore is not qualified for a good deal. If you know your credit standing, no one can tell you differently.

DO shop around and compare.

● Never sign up for a bad credit personal loan offer, no matter how great the offer may seem to be, without taking some time to explore your options.

● Use the internet to gather rates from potential

lenders. You can also check the background and reputation of a lending company by reading reviews online.

Do ask for professional help.

A counsellor who specializes in bad credit cases can assist you, not only in finding the right lending company, but also in managing your finances and in creating an efficient debt repayment plan.

What You Should Avoid?

● Aside from finding a reasonable rate, you’ll also want to compare the fees associated with your personal loans for people with bad credit.

● Some lenders may try to entice borrowers into signing up by offering an incredibly low rate – one which is bound to increase the moment your cash is released.

● If you look closely, you may be surprised that there are lots of extra fees and hidden charges.

Don’t look at the rates alone.

Don’t take out a loan unless it’s an emergency. ● Ask yourself, do I really need to apply for

a loan or do I have other options? ● It would be better for you to focus on

improving your credit by paying off your debts and keeping up with your current payments.

● Taking out a new loan can only add up to your burden.

Don’t borrow more than what the situation calls for.

● Even if you can get approved for a bigger loan amount, it’s best to keep it minimal.

● Remember that the best deals are exclusively offered to customers with good to excellent credit.

● Since you have an unimpressive credit rating, you will not be able to qualify for the best possible deal.

● Therefore, borrow only the amount you need and be cautious about your spending.

RESOURCES:

• If you are looking for nationwide personal loans check this resource

http://www.newhorizon.org/Info/personaloans.htm