Where can I get a loan with bad credit? Quick tips on finding a reputable lender

Category: Questions & Answers

Having money to do with as you please is always a good thing. You can buy whatever you want and not lose sleep about it. Unfortunately for most us, this isn’t really the case. Only a handful of people can afford to live like this. We, on the other hand, have to agonize over every penny spent because if we don’t we might end up like Jeremy. Let’s listen to his story:

I’ve been very conscientious with maintaining good credit scores because that’s how I was raised. I always try to pay my obligations on time, and never borrow more than what I can manage to pay off. Despite all the effort, I still somehow missed payments to a credit card I’ve seldom used, all because I opted to receive bills via email instead of the usual delivery by snail mail. Those few months of missed payments made my credit scores nosedive and when I needed to make a small loan every bank I turned to denied approval. Where can I get a personal loan with bad credit?

– Jeremy

The truth is, there are smart lenders out there who know about people like Florence and want to serve this marginalized market. They know it’s very risky the answer to the question: where can I get a personal loan with bad credit? People with bad credit have a history of being very poor in managing finances but these lenders know how to hedge against the risk. But there is also a good proportion of the market who are in Jeremy’s boat. They’re good with personal finance management but have a patch of bad luck. Lenders also know that very few main street establishments will be willing to help people get a personal loan (similar to those in the UK or Canada) with bad credit so this market is underserved.

Jeremy does not need to worry too much about where to get loans with bad credit because they are out there, mostly online, and it’s easy to find them. They guarantee quick and fast approval, and in most instances you get your cash today (same day). What he does have to worry about is what she does when she finally gets the loan.

Credit score rating goes down

Yes you now have the money you need, and you feel giddy after being so low cash for such a long time. Do you pinch a little bit from the amount to treat yourself to a dinner at your favorite restaurant? Perhaps pamper yourself with a facial and a massage because being poor is such a stressful thing? If you do then be prepared for more stress because if you fail to pay the loan you get with bad credit, your credit will go from bad to worse. It might even be impossible to repair. Remember that your credit rating is the face you show to the world of finance, and you will always be judged by that. Bad credit? Bad person. It hurts, but it’s true. Yes there are places where you can get a personal loan with bad credit but these places will be closed to you if you don’t pay up.

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Lost job opportunities

If, as a part of your financial rebuilding activities, you decide to look for a new job the human resources department will run a background check on and one of the most easily available pieces of information is your credit rating. If you haven’t been making payments on time they will interpret this as a sign that you might be a procrastinator. No team wants a member who puts off for tomorrow what can be done today. Your application might be turned down.

Take good care of your credit rating

You have to remember that only you have the right to read your credit report. The direct lender only has access to it with your permission. Even when you’ve been denied credit it is always a good idea to check your credit file regularly and ensure all the information is correct. You have the right to dispute inaccurate information on your credit file, and to have errors corrected. If there is negative information on your file about people in your family with whom you have no financial connection, you can ask the agencies to “disassociate” you from them.

Always remember that good rating means good credit. The higher the rating, the higher your chances of securing better terms. Learn more about what’s in your credit score and how the scores are computed in the primer from FICO.

By Jenny Chang

Senior writer at FinancesOnline who writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore, keeping tabs on edge tech like 3D printed health monitoring tattoos and SpaceX’s exploration plans.

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Amanda Paige says:

I think of online loans as the bridge to allow me to cross over to mainstream credit. I have a poor credit score now and I’m planning to push it up to respectable levels in a year. In the meantime, I also need extra cash from time to time. That’s where online loans come in. I make sure to pay them back soon to avoid ruining my bigger plan of repairing my credit score. In short, don’t depend on online loans forever; it’s just a ticket to better and bigger loans once you have your credit in shape again.

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Price Krueger says:

It’s easy to fall to temptation once you have the cash in hand. A quick trip to your favorite restaurant won’t hurt, you’d say. After all, the stress of finding emergency cash is emotionally draining and now that you have the cash, it’s easy to reward yourself with a little treat. But that little treat will hurt your loan and worse, your ability to pay it back. So don’t do it. Stay focused on using the loan for its real purpose, not a dime short. It’s borrowed money, not your money. Keep that in mind and you’ll be safe.

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