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 > How to Get a Bad-Credit Personal Loan |
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A
bad-credit personal loan is a relatively new offering from financial
institutions that recognize that a less-than-perfect credit history doesn't
necessarily mean a borrower is likely to default on loan repayment. To
secure a bad-credit personal loan, you'll have to have a clearly defined
purpose for the money, which will in turn affect the terms of the loan and
its repayment.
Instructions
Get a Bad-Credit Personal Loan
Step 1
Find lenders that offer bad-credit personal loans. First, check with your
regular bank. If that doesn't work, head online to see what's available
through the many non-traditional financial institutions that have become key
players in the personal finance marketplace.
Step 2
Identify the reason you're seeking a loan. If you need it for a major
purchase, such as a home or a car, remember that you might be better off
rebuilding your credit first so you can get a regular loan with terms that
are more advantageous. Many people also get bad-credit personal loans for
short-term financing for things like home improvements, weddings, honeymoons
or to pay down debt.
Step 3
Compare the terms of the various loans you're considering very carefully.
Look at more than just interest rates and repayment terms. Check carefully
for hidden fees, high closing costs and other loopholes designed to increase
the amount you'll end up paying back to the lender.
Step 4
Meet in person with the lender if you're applying through a bank, or
complete your application if you're trying to get a loan through an online
or wholesale financial institution. Make sure you know ahead of time what
kind of supporting documentation you'll need to show, and bring it with you.
Generally, lenders want evidence that you have assets to use as collateral
and a steady, secure income stream to ensure you can cover your loan
payments.
Step 5
Present your supporting documentation to the lender, complete all
application materials in full, and do your best to give the impression that
you're trying to turn the corner on your bad credit history.
Step 6
Review all the loan documents to ensure the terms contained therein are the
same as the terms you agreed to. Sign off on the loan if everything looks as
it should.
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