Bad credit can put a damper on your progress when you’re trying to get an approval for a loan. Fortunately, there are some steps you can take to make your experience progress a little more smoothly so that you can get the funds you need. Here are five tips for applying for a loan with bad credit:
1. Check Your Exact Credit Score
The first thing that you should do before you apply for any loan is to check your credit score. You can obtain free copies of your credit score by visiting each of the credit bureaus, or you can obtain such scores by going to a site like annualcreditreport.com that offers all three at the same time. That will give you a good picture of what’s exactly on your credit report. You should try to get your exact score too because many lenders approve and deny by scores.
2. Examine Your Personal Finance
The next thing you’ll need to do after you check your credit report looks at your finances. It makes no sense to apply for a loan if you’re not sure if you can handle paying it back. Write down your monthly income and your monthly expenses. See if you have enough left over to pay for a loan. You may have to pay the loan rather quickly if you get a quick-cash advance. On the other hand, you may be able to grab hold of a good installment loan. You still need to be able to pay it back without breaking yourself or needing more money.
3. Compare Several Lenders
Don’t ever put all of your hope into one provider. You should examine at least three providers and thoroughly compare them before you apply for a loan with bad credit. The three things you need to pay the most attention to are their consumer reviews, their tenure and their fees. Their fees could be damaging to your financial health, so you have to be very careful with it.
4. Use a Loan Calculator
A loan calculator will help you to see how much you will have to pay each cycle. It’s an important tool because it can help you decide whether you have enough resources to take a loan and succeed with the repayment. Use it while you are examining your options. You may find that it makes you want to choose a different provider from the one that you originally had in mind.
5. Contact the Lender Before You Apply
Finally, contact the lender before you apply. Ask someone what the qualifying score range is and try to get a definitive answer. That way, you won’t waste a hard inquiry on something that you probably won’t get.
Many more tips and strategies are available when you have bad credit. Try these first, though, and see if they help you.