How to Make Getting a Loan with Bad Credit a Reality!

prudentWe’ve all heard it before, probably more than once: “Getting a loan with bad credit is impossible.” Unfortunately, many of us take this to heart and assume that bad credit in the past will make securing credit in the future unlikely – but this just is not the case. Getting a loan with bad credit isn’t impossible – it may actually be easier that you think.

What is bad credit anyways? When you have a personal loan or a credit card, your repayment and borrowing behaviour is constantly recorded and updated in a credit report. This information is then used to determine a credit score – a number which demonstrates to lenders your risk as a borrower. When you make regular payments, on time, and don’t get close to or over your limits, this is considered a good thing and your score will likely be high and your credit good.

However, when you start missing payments, continually apply for new credit, or have cards at or above their limits, these are considered behaviours that make you a higher risk, and are what lead to a credit report that may be perceived as bad. Sometimes this makes getting future credit difficult as some financial institutions will not take on the added risk.

If one institution refuses, then all will refuse, right? Wrong. There are lenders that understand that life happens, and acknowledge that sometimes a second chance is all that is needed to bring that credit score back up – you just have to know what to look for to find them!

Just wait – we are definably not talking about payday loans or more credit cards here – these are granted easily and are just going to lead to further credit problems. We are talking instead about reputable lenders with years of experiencing providing funding to borrowers with less than stellar credit.

Here is what to look for:

You want a loan that gives you credit on your credit report so you won’t always have bad credit. As mentioned, good credit behaviour helps to rebuild credit, but it needs to be reported to count. Payday loan providers and many private lenders won’t report, so they don’t help at all.

Watch out for sky-high interest and exorbitant fees. Sure, securing funding is great, but if that funding comes with fees that will make the loan impossible to pay off, you’ll end up in worse shape than when you first took out the loan.

Many lenders won’t take on discharged or undischarged bankrupts, or those who’ve been in consumer proposals, so look for a lender who will provide for these individuals.

Is getting a loan with bad credit impossible? Nope. It may take a bit more legwork to secure a loan that makes financial sense, but the effort may result in a much better credit rating in the end!

Prudent Financial offers personal, car and home loans to people with bad credit including discharged and undischarged bankrupts. We can help – call us today at 1-888-852-7647.



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