We all have gone through hard times but not everyone closes that chapter in their life. Some even face it every single day of their lives.
Requesting to loan money is already hard for someone with good credit but it is even harder to get loans for people with bad credit story. No worries, a bad credit score is not a hindrance from getting a personal loan. Here are ways that you can borrow money and improve your bad credit history.
I have bad credit story – how can I get a loan?
Bad credit history is an indicator that a loaner has a background of failure to keep up with payments. It is tracked down by credit bureaus that collect these records and compiles it into a credit report. Personal loans for people with bad credit may be unsecured and in installment basis in large lumps known as origination fee that is in exchange for repaying in a given amount of time. People with bad credit may opt to borrow money from the following:
Family and friends who they know personally who can lend a few bucks. Since you know them personally, there might be no interest rate and due date to worry about. One thing you must not forget is that regardless of who they are you still must pay accordingly.
If there is no family or friend who would want to loan you money, maybe someone with good credit would be willing to co-sign a loan with you. The payment history is recorded on both of your credit records; thus, hold your end of the bargain to pay in full because your co-signer would have a bad record as well.
Get a loan directly from either traditional or online lending companies that are not members of your country’s credit information bureau. Here, borrowers can easily loan depending on their profile and capacity to pay. Just make sure that you are fully aware of the terms and conditions of the loan contract to avoid unnecessary expenses.
How to improve bad credit history
Improving one’s bad credit loans is like losing weight. It must happen gradually because if it happens immediately, grave effects may take a toll. It needs management and control for you may be able to lose weight but if you discontinue your methods, you may regain what you lost and even more. Here are three ways to improve bad credit history and they are as follows:
Check your credit report for errors such as late payments and insufficient or excessive amounts paid or owed. If there are errors, have them corrected immediately with the credit bureau. To keep track of your credit, you may opt to request for a copy of your credit report.
Pay your credit requirements on or before the due date to be able to monitor your credit scores. If you have the tendency to forget such, enroll in payment reminders offered by the bank which is through their online portal that sends emails or text message reminding when a payment is due. There are also automatic payments available through loan providers whom automatically deduct from your bank account.
Stop using credit cards to reduce what you owe. If you have requested for a copy of your credit report, make a list of all your accounts and validate statements to know how much you owe on each account and how much they charge you and keep track of it.