Can You Get a Loan Even with Terrible Credit Ratings?

Many of us make a lot of mistakes when it comes to maintaining our credit history. It is easy, especially when you are young, to get in over your head and run up debts that you are not able to pay for, especially with credit cards and automobile loans. Unfortunately, the credit bureaus are not very forgiving when it comes to these mistakes. It is all there in black and white, you either have good credit or bad. Oftentimes, we take our credit for granted, especially in times of financial hardship, not thinking about that the time will probably come when we need a loan for some reason, and that because of our credit neglect, we may not be able to qualify for the loan we need.

Fortunately, for those of us guilty of these errors, there are ways to obtain loans even with a bad credit history. Many bank lenders are now beginning to understand that with the economy like it is, the acreage person is likely to have some credit problems as some point sooner or later. Just because you have had some issues in the past, doesn’t necessarily mean you will have them now.

Don’t assume that because a lender or bank is willing to loan you money or give you a credit card that they are on your side. It is actually to these companies advantage to take a risk on you and extend you credit. You see, when you have bad credit, lenders are able to charge you higher fees, making more money from you than they would the consumer with perfect or even average credit. Oftentimes, you are also willing to accept these cards or loans with the higher fees out of desperation to rebuild your credit, or just to have extra funds at your disposal.

When you are applying for a loan or credit card and know that you have bad or poor credit, it is important that you make certain that you are dealing with a reputable lender. There are many companies out there that are willing to extend credit to you, but have horrible customer service, or outrageous interest rates and fees. They may offer you a credit card with a $300 limit, and then put $200 in fees on the card before you ever even get to use it. Or, they may offer you a personal loan, with very high payments, and interest, so that it will take you years to pay it off if you just make the minimum required payment.

You should be aware of your financial situation, and make certain that you read the find print before accepting terms on any loan or credit card agreement. There are often hidden fees and conditions that you won’t know about unless you take the time to thoroughly review the information provided before you sign a contract. Calculate all of your existing bills and living expenses, and make certain that you can afford to make at least the minimum payment, before accepting the loan. Many of these lenders will charge you higher interest and fees if you accept the loan, and then miss a payment, or have problems getting them in on time. They use this “default” to yank up your interest rate, and add extra late fees to your balance, and over time this can really add up and put you in great financial strain.

Make wise credit decisions, evaluate the reason you want the loan or credit card, and then see if there are any other options to get the funds you need without it. Don’t use credit cards or loans for frivolous purposes, make certain that you only use them for things that you have to have now that you cannot get any other way. It is always to your advantage to be up front with your creditors, and try to rectify any situation before it goes on and on and gets worse and worse. Remember, you can qualify for credit even if you have bad credit scores, but it is up to you to handle it responsibly