If you are an individual and fortunate enough to have very bad credit while needing a loan, don't worry all is not lost. Finding a very bad credit loan isn't impossible because they do exist and there are few options to consider before applying. To help you through the process it is broken down into steps to walk you through the process. Many people are overwhelmed when they have bad credit and they need to borrow money. By going through these steps you'll increase your chances of qualifying and also possibly find new ideas or opportunities to explore. I've also included links to more information to help as well. Before you proceed to the steps take a deep breath and try to relax, commonly where there's very bad credit, stress in nearby.
Here are the steps that can be used as a checklist:
Create an action list
While reading through this checklist have with a piece of paper and a pen to write down action steps you can take to achieve your goal. People often read an article and see good ideas they can use but will forget in the future when it's time to take action. By writing them down and have them in one place to act as a checklist or to-do list. You may want to post your action list next to the telephone or the computer to have everything you will need centralized. This will minimize distractions when you sit down to work.
Identify goals and the timelines when they need to be achieved. This is a critical step that will help you keep on track and also prioritize which steps need to be completed first. It is easy to get off track on steps that are not as time sensitive as others. After you've read through everything here it'll be easier to rank the order of each step with the time frame next to it. Don't just write down short-term goals also include longer-term goals to not only help you with solving a problem this week, but also will put you and your finances in a better position months from now.
Ask yourself what you need the credit loan for. By taking a moment to identify what your real end result is will improve your chances of qualifying and getting more things accomplished with less work. If you're thinking short-term about paying off an unexpected expense, you will potentially solve that one problem. If you think about what else is important, you can accomplish other goals at the same time. For instance, if you're trying to pay off an unexpected expense you can also improve your credit at the same time by structuring things properly.
Identify your resources that you have right now to help you accomplish qualifying for credit loan with very bad credit. This could be things like a close friend or family member that could act as a cosigner or equity in your home you could use as collateral to help qualify. It could also include so many know and trust with experience in personal finances or credit they can help you through the process.
Obtain a free copy of your credit report. Everyone's allowed one free copy of their credit report per year and by requesting it, it doesn't negatively impact credit score. You may have heard that having your credit check and negatively impact your credit, which is true, but that's usually when applying for a lending product. They call this a hard pull in the credit industry and when you personally request your credit is called a soft pull (which doesn't affect your credit score). By doing this you can really see what's affecting your credit and take steps to improve it through correcting any mistakes, consolidating, bringing things up to date or paying them off completely.
Use the internet to research different lending products including; costs, qualifications, application process and quality of the lending institution. You can easily eliminate banks that don't have any products geared towards what you're trying to do like debt consolidation. You can also eliminate banks charge too much in either interests, service charges and other related charges. You can also rank the banks you want to apply to by promotional offers and benefits.
Take action today, is the key to making anything happen. The sooner you get this resolved the better and if you're trying to improve your credit the sooner you act, the faster time starts working for you instead of against you. One of the criteria that affect's credit scores is how long an entry has been on it. This works for both good things and bad things. Using this as an outline will help you to fill in the details and have a better chance of qualifying for a 'very bad credit loan'.