Bad Credit Loan Options
Bad credit loan options are hard to come by, and almost impossible to get. That’s why you always hear that you should work on improving your credit as quickly as possible if you want to apply for a auto loan. But how do you do that? Certainly, it’s not something that can be done overnight, but if you follow our advice below you will learn about how get bad credit loan options. Bad credit doesn’t have to be forever. Neither do your bad financial habits that have been plaguing you throughout your life and have brought you to this point. So sit back, get out a pad and a pencil, and prepare to learn how to improve your bad credit score.
Pay As Much Of Your Debt Off As Soon As Possible
The #1 cause of bad credit is missed payments toward debt owed. Nothing makes your bad credit look even worse if you have collections coming after you. Sure you can get caught up, but why do that if your loans are small enough to pay off in full? Pay off as many loans as possible, and then build up a few months of making payments on loans that you can’t pay off right now. As you steadily make your payments on time, you’ll discover that your credit score is slowly but surely going up. By missing more payments, you are showing potential lenders that you are not trustworthy enough to make payments on time.
No Debt? Get A Credit Card
Sometimes people have bad credit because they have no credit at all. If you’ve managed to make it this far without needing a loan or other forms of debt, congratulations! We truly applaud you. However, having no credit at all will also translate as “bad” credit. This comes from two sources. One, you are still quite young and don’t have much of a history built up yet. Two, you have no debt at all. In this case, we recommend getting a credit card and using it to pay for things you absolutely need, such as groceries. Then go home and immediately pay the credit card company for what you were just charged. This way you’re building up a credit payment history without putting yourself into more debt.
Wait For Your Bankruptcy And Evictions To Disappear
How get loan bad credit options include having to wait a little while longer to get that loan you want. If you have recently been evicted or declared bankruptcy, you can expect it to really harm your credit score. If paying off your current bills isn’t an option, you’re going to have to wait until the big blemishes naturally fall of your record. In the case of eviction and sometimes bankruptcy, that happens after about seven years. If you’re five or six years in, then it really behooves you to wait for that seventh year to come around. You’ll be waiting longer than you originally planned, but it’s absolutely the best solution in your position. If you’ve got longer than that to wait, then we suggest some of the options above. Start building your credit again and be prepared for an uphill battle.
If you’re serious about getting a loan with bad credit, you have to keep in mind that it can’t be done overnight. Nor is it simple to do in actual practice. But the theories behind it are quite simple. You need to pay off your bills on time, and not be evicted or declare bankruptcy for at least seven years. If you’re having troubles because you have no credit at all, then it’s time to start building that credit in the form of an easy, low-interest credit card. When it comes to how get loan bad credit, we understand that it can be scary and even outright daunting. But hang in there. Keep your chin up, your wallet secure, and within a couple of years you’ll finally have that loan you need to get a house or a new car.
No matter which option you decide to pursue, know that there are groups willing to help you. You don’t have to do it alone, and we don’t recommend you do so either.