| Copyright RebuildCreditScores 2008. All Rights Reserved |
Bad Credit Personal Loans:
How to find a bad credit loan
by rebuildcreditscores.com
How to find a bad credit loan
by rebuildcreditscores.com
Get your free credit score and more!
It’s a good idea to get your credit report and scores before you begin to shop around for a bad credit
loan. You will save yourself a lot of time and minimize credit inquiries by knowing your credit score
before applying for a loan. Find out which credit reporting agency contains your highest score.
Research Lenders
Most lenders will let you know the minimum required credit score to get a loan. You can actually call a
lender and ask what is the minimum credit score they look for to approve a loan and while you have
them on the phone, politely ask which of the three credit bureaus they use. Most lenders will pull your
credit report from one or two credit reporting agencies. However, there are some lenders who may run
a merged report of all three major credit reporting agencies.
Try your local credit union
Most credit unions will only run one credit report in making a decision to approve a loan and it’s
usually from Experian. Credit Union approval criteria is sometimes less stringent than traditional banks
and their interest rates are very competitive.
Higher interest rate
Be prepared to accept a higher interest rate. Credit approval is so score driven that it may be difficult
to get around a higher interest rate. Shopping around for the best interest rate may save you some
money but keep in mind your willingness to pay a higher interest rate may actually get you the loan
you need. Some lenders will look at your credit score as an opportunity to offer you their bad credit
products and this may be the only way to get approved. You may want to consider a secured credit
loan in order to lower your interest rates.
Opportunity to rebuild your credit
Bad credit loans are not so bad. Getting approved for a bad credit loan can be viewed as an
opportunity to rebuild your credit and improve your credit scores. You must make all payments on
time and if possible, pay more than the minimum due and have it applied directly to the principal. This
can reduce the interest paid over the life of the loan and get the loan paid off sooner.
Consider social lending
Prosper is a website where borrowers and lenders meet. It was created to make consumer lending
more financially and socially rewarding. Prosper is a viable alternative to traditional bank loans and
they accept borrowers with credit scores as low as 520. It has been called "an eBay for loans". You
can get your loan request bid on by several lenders. Loans are made from $1,000 to $25,000.
Lenders search for loan listings based on the borrower's credit, debt profile, and group affiliation.
Lenders bid on listings by indicating a minimum rate they are willing to accept. Find out more about
social lending and peer to peer loans.
Friends and Family
The best way to avoid high interest costs would be a loan from friends or family. Borrowing from
friends or family can save you money. You may be better able to convince your friends or family to
make a loan if you have formal loan documents drawn up. A fairly new website can aid you in this
process. Virgin Money structures formal loans between friends and family. It is a person to person
lending service that manages the personal loans you make with people you know. Virgin Money can
also report loan payments to the alternative credit reporting company, PRBC. Learn more about
Virgin Money.
It’s a good idea to get your credit report and scores before you begin to shop around for a bad credit
loan. You will save yourself a lot of time and minimize credit inquiries by knowing your credit score
before applying for a loan. Find out which credit reporting agency contains your highest score.
Research Lenders
Most lenders will let you know the minimum required credit score to get a loan. You can actually call a
lender and ask what is the minimum credit score they look for to approve a loan and while you have
them on the phone, politely ask which of the three credit bureaus they use. Most lenders will pull your
credit report from one or two credit reporting agencies. However, there are some lenders who may run
a merged report of all three major credit reporting agencies.
Try your local credit union
Most credit unions will only run one credit report in making a decision to approve a loan and it’s
usually from Experian. Credit Union approval criteria is sometimes less stringent than traditional banks
and their interest rates are very competitive.
Higher interest rate
Be prepared to accept a higher interest rate. Credit approval is so score driven that it may be difficult
to get around a higher interest rate. Shopping around for the best interest rate may save you some
money but keep in mind your willingness to pay a higher interest rate may actually get you the loan
you need. Some lenders will look at your credit score as an opportunity to offer you their bad credit
products and this may be the only way to get approved. You may want to consider a secured credit
loan in order to lower your interest rates.
Opportunity to rebuild your credit
Bad credit loans are not so bad. Getting approved for a bad credit loan can be viewed as an
opportunity to rebuild your credit and improve your credit scores. You must make all payments on
time and if possible, pay more than the minimum due and have it applied directly to the principal. This
can reduce the interest paid over the life of the loan and get the loan paid off sooner.
Consider social lending
Prosper is a website where borrowers and lenders meet. It was created to make consumer lending
more financially and socially rewarding. Prosper is a viable alternative to traditional bank loans and
they accept borrowers with credit scores as low as 520. It has been called "an eBay for loans". You
can get your loan request bid on by several lenders. Loans are made from $1,000 to $25,000.
Lenders search for loan listings based on the borrower's credit, debt profile, and group affiliation.
Lenders bid on listings by indicating a minimum rate they are willing to accept. Find out more about
social lending and peer to peer loans.
Friends and Family
The best way to avoid high interest costs would be a loan from friends or family. Borrowing from
friends or family can save you money. You may be better able to convince your friends or family to
make a loan if you have formal loan documents drawn up. A fairly new website can aid you in this
process. Virgin Money structures formal loans between friends and family. It is a person to person
lending service that manages the personal loans you make with people you know. Virgin Money can
also report loan payments to the alternative credit reporting company, PRBC. Learn more about
Virgin Money.
 |  |  |  |  |  |  |  |  |  |
 | Apply for easy credit to Raise Scores | |
| Tips to Rebuild & Improve Credit Scores | |
| 10 Steps to Build Business Credit | |
| Rapid Re-Score Credit Files | |
Related Topics
Bad credit personal loans are available and the
likelihood of getting a high interest is great.
Personal loans are more risky because they are
unsecured.
No collateral such as a house, car or equipment is
required. Because a bad credit personal loan will
undoubtedly come with a high interest rate, it may
be a good idea to get your credit scores prior to
applying.
You may want to reconsider getting a bad credit
loan until you can rebuild your credit scores. If you
cannot wait to improve your credit then consider the
following when shopping for a loan:
likelihood of getting a high interest is great.
Personal loans are more risky because they are
unsecured.
No collateral such as a house, car or equipment is
required. Because a bad credit personal loan will
undoubtedly come with a high interest rate, it may
be a good idea to get your credit scores prior to
applying.
You may want to reconsider getting a bad credit
loan until you can rebuild your credit scores. If you
cannot wait to improve your credit then consider the
following when shopping for a loan: