If you have low credit score, you still can apply for bad credit personal loans. Whoever told you that you couldn’t get a loan from a lender, get a personal loan, manage your own debt (if you know the tricks), know how to buy things even with bad credit, fix your bad credit (even raise your FICO score), as well as buying a car, plus buying a home with no credit history, didn’t have both oars in the water. Plain and simple, it’s just not true. Yes, it does sound a bit farfetched when you come to think about it, but some clever folks can even buy a nice used car after a bankruptcy – yikes! However, to avoid any confusion about how to handle all these financial hurdles, with your indulgence, let’s take the subjects one by one so all you have to do is clip the info out and have it for your future reference. A personal financial parachute, if you will.
Fixing Your Credit History!
Responsible borrowing should be on top of your list since it’s the only true way to keep a budget you can live with, so never borrow more than you can pay back responsibly. If you run into a hurdle and can’t make your payment on time, most lenders will allow for a bump in the road now and then. Your credit and FICO score is the lifeblood of every person. It’s how lenders decide if you are creditworthy or not.
Being late on credit cards is a killer. Not paying your card at all is worse than being late and when the bell rings and your status is on the “charge off” shelf, you’re dead in the water. Having an account reach the collection box, defaulting on a loan; especially a home loan is similar to a credit card headache. Getting a judgment shows the court you’re avoiding paying your bills and having your property foreclosed is also bad news for you. Owning and using ten or fifteen credit cards all with high balances is not in your best interest.
Bad Credit Is OK And So Is Bankruptcy!
Having bad credit is not as bad as you think. This may prevent you from getting a loan at any bank or credit union, but you’ll be OK applying for an unsecured personal loan. Unsecured meaning you have no liquid assets on hand to insure payment on the loan. A personal loan lender will only verify that you’ve been on the same job for at least one year and you make your rent and utility payments on time. This procedure is called: “mitigating circumstances.”