Tips For Securing A Loan When You Have Bad Credit

When you have bad credit, securing a loan isn’t as easy as walking into a bank and saying, “I need a loan”. There are however some tips for securing a loan when you have bad credit. Securing a loan will take a little bit if time if you do not want a payday loan that charges you a fee and then an extremely high interest rate for the two weeks you have the loan. When you secure a loan through a bank, credit union or lending company you will need to show them you can honor the loan and keep up the payments even though you have bad credit.

Tip one- Secure a loan when you have bad credit by going into the bank and talking to the loan officer face to face. This will show the lender that you are serious and that you have been working to get better credit. A bank or credit union realizes that you can’t get your credit rating up without some credit lines. The main key here is to be honest and tell them why you have bad credit. You can secure a loan through a bank or a credit union by letting them show you all your options.

Tips two- Check out all the options the lender shows you. To secure a loan when you have bad credit look at all the options that different banks or credit unions may have to offer you. Check out more than one lending institution. Go in and tell them what your situation is and see if they are willing to help and are receptive to your circumstances. Do this before they run a credit check. Tell them you have bad credit and that you want to see if they can secure a loan for you before they run a credit check.

Tip three- Talk to family and friends and see if you can get a co-signer. If you need to get a co-signer that has good credit and can show that they are capable of taking over the loan if you default. The lender will be more willing to secure a loan when you have the bad credit and a co-signer. Asking a friend or family member to co-sign is a big thing so talk to those that are aware of your bad credit and understand why you have bad credit.

Tip four- Get something for collateral. If you have anything of value that you can use for collateral on a loan, present it to the lender. Securing a loan with collateral when you have bad credit assures the bank that if you default on the loan then you loose the collateral. They are not out everything. Collateral may be something you have or a gift from someone. If you are looking to get a loan on a house or a car and you can get the loan for less than the value of the house or the car, you have some sort of collateral. The lender will like the fact that they could sell the item for more than you owe on it.

Securing a loan when you have bad credit can be done and is done all the time. If you are looking for a small loan that you will pay off quickly, you can try online companies that offer no credit checks, but be aware they will have high interest rates.

When you are looking for a loan and you have bad credit, remember that there are some tips you can work with. Four tips for securing a loan when you have bad credit are-Talk to the lender face to face, check out all options and more than one lending institution, get a co-signer, and get some collateral.