If you’re someone who has consistently struggled due to a poor credit score, it’s important that you begin to take the loan process seriously. The best way to get personal loans for poor credit is to change the way that you approach finance in your life. You need to make sure that you’re being as serious about your credit score as you should be. Many lenders are willing to offer poor credit personal loans, but you’ll need to do a few things to get started on the right foot.
This guide has been written to help provide people with expertise on personal loans poor credit. If you want to know more about how to get a personal loan without a great credit score, this should be your first stop. We have in-depth knowledge regarding the personal loan industry, and can help you get the information you need to make the right choice. Make sure to take in all the information in this article prior to making an application for a personal loan for poor credit.
Assess Your Credit Score: The First Step for Personal Loans Poor Credit
The best thing to do before you start any borrowing is to assess your credit score and the reasons that it is currently low. In order to move forward and approach your lending experience correctly, you need to know that you understand why you’re currently in the situation you’re in.
Credit scores are low for a number of reasons. Below we will outline certain reasons that your credit score might currently be poor.
If you’ve missed payments in the past, this will be one of the major reasons that your credit score is currently poor. Missing payments has as significant impact on your credit score.
Credit Card Debt
The amount of money that you owe on your credit cards will also have a significant impact on your credit score. This is calculated as a ratio of the amount of your credit score that you’re using. The same goes for the amount of money that you’ve borrowed on a line of credit.
Every time you apply for credit, the credit company will check your credit report. This will log a credit inquiry on your file. This will reduce you score in the near-term. If you apply for a lot of loans or credit cards, you’ll probably find that you have a lower score because of it. This will often reduce your score by about 15 each time.
If you’ve opened a lot of lending accounts in recent times, this will also impact your credit score. The more accounts you open in a short amount of time, the worse your credit score will end up being. Don’t open financial accounts unless you need to.
Defaults or Bankruptcies
If you have multiple defaults or bankruptcies on your credit report, then you will definitely have a poor credit score. These sorts of issues are typically the most damaging.
What to Look for From a Secure Personal Loan Lender
If you still think that securing the loan is the right path for you to take, you’ll want to start assessing the various lenders that you can work with. Find the best place to get a personal loan will mean that you have to look at a variety of factors and features prior to making any decisions. We will overview some of the key characteristics and features you should be looking for when trying to find the best place to get a secured personal loan.
This might sound redundant, but customer satisfaction is extremely important. You might not plan on having much interaction with your lender after you borrow the money, but you still need to make sure that you are going to have a good overall experience. Just because you’re working with a large bank, doesn’t mean that you shouldn’t be wary of their customer satisfaction record. In fact, some of the largest banks in the country have the worst customer satisfaction ratings in the nation. You should always do your due diligence.
Fortunately, the internet has made this rather easy. It’s very straightforward to access customer reviews and complaints. Consumer Affairs is a good starting point. You can head to their website and find a variety of different reviews on different lenders around the country. They also do some of their own research to ensure companies are good operators.
While you will most likely meet with a lender that has a brick-and-mortar location, you still need to make sure that they have modern capabilities. Ask them about the different online features they have. You want to make sure that your lender can allow you to make your payments online – anything else can be a huge hassle and result in you missing payments by mistake.
You should be able to track your loan activity and balance through an easy-to-use portal that doesn’t create serious problems for you or your partner. Make sure that you are working with a lender that is up-to-date with the industry standards.
You want to try and work with a lender that can provide you flexibility when it comes to securing your loan. Securing a loan can be scary – it’s hard to sign over the rights to your assets when you’re trying to obtain finance. That’s why it’s important to try and find a lender that accepts a variety of different assets for securing loans. You don’t want to be forced to use an asset that you’re not willing to use as collateral.
Last, but certainly not least, you need to make sure that you’re working with a lender that provides you with good value. There’s no point signing up to work with a lender that will be out of your budget. You should be looking at a number of costs when you try and determine if a lender is good value: origination fee, interest rate, and other fees.
The origination fee is the fee that the lender will charge you to take out the loan. It sometimes comes as a percentage of the total loan. The interest rate is the rate that you will pay in interest throughout the term of the loan – this has the biggest impact on the value of the loan. Other fees can come in all shapes and sizes, so it’s important to ask your lender if there are any hidden fees. You should also check if your interest rate is fixed or variable. A variable interest rate can result in huge swings in the cost of your loan – this can be a fair bit riskier, although in some cases it provides more value.
The best way to assess the value of a loan is to ask your lender for a full breakdown of costs. Tell them that you want to know the full cost of the loan in its entirety. This way you can view the loan with the all fees and interest included!
What to Look for From an Unsecured Personal Loan Lender
If you’ve opted for an unsecured personal loan lender, you’ll need to do some due diligence as well. It can be hard to choose the best personal loan lender when you’re opting for an unsecured loan. This is because you typically have so many different lenders to choose from.
Many online personal loan lenders that offer unsecured loans are brand new to the industry. This means that they don’t have a long track record when it comes customer satisfaction. While this might seem like a good excuse for not having a lot of reviews or information online, you should try and avoid working with brand new companies. There are plenty of predators in the market so it’s important to make sure that you work with a company that you can trust.
Look up the companies that you’re planning on working with. Make sure that they have been in business for at least a couple of years. Anything less than this means that you won’t have a good chance of understanding if they’re a reputable company. Cross reference all the companies that you’re planning on working with on the Better Business Bureau. This consumer watchdog group provides a verified review portal that customers can use to complain or praise a company’s performance.
Realistic Interest Rates
Make sure that the company you’re planning on working with has realistic interest rates. A lot of companies that provide unsecured loans have ridiculous interest rates attached to them. You shouldn’t work with a lender that charges extremely high interest. If you shop around a bit, you’ll find that there are plenty of lenders that offer unsecured loans for a relatively reasonable interest rate. Don’t work with companies that will make you drown in the money that you owe.
Easy Application, Quick Decision
If you’re applying for an unsecured loan, you should be looking to work with a lender that has an easy application process. It can be easy to waste time on an application, but you really don’t have to. There are plenty of online unsecured lenders that have applications that will only take you about ten minutes to complete. You should also be looking to see how quickly they will make a decision. While they can’t guarantee how long it will take to find out if you’ve been approved, most of the best personal loan companies will give you a decision in just moments.
Another thing to consider is how fast they can get you the money once you’ve been approved. Transfer speed is a huge issue if you’re trying to get you money quickly. You don’t want to work with a lender that will take weeks to give you the cash you need. Instead, look for lenders that do electronic bank transfers. Many will be able to get you the money you need in less than an hour. It’s a great way to make sure that you can get capital quickly when a situation calls for it. Many online lenders that offer unsecured loans will provide you with this feature.
Application Check List
Prior to applying for your loan. You should make sure to run through this checklist and ensure that you have everything you need. You should also make sure that your lender has everything you’re looking for. Feel free to add additional items to this checklist as you please!
What You Need:
- Social Security Number
- Income History
- Address History
- Personal Information
What They Should Have:
- Good Customer Service Record
- Good Interest Rates
- No Hidden Fees
- Established Platform
- Easily Accessible Payment
- Low Early Termination Fees
Applying for finance may not sound like fun, but it can be really easy if you make sure to approach it in the right way. If you want to find the best place to get a personal loan, you simply need to consider the things that have been mentioned in this article. All the information you need is sitting right here in this guide.
We also try and provide our readers with a head start in finding the best place to get a personal loan. If you head to our homepage, you will be able to find a current list of lenders that we recommend. We want to ensure that our readers have the best possible information when they start their lending journey.
If you have any other questions on personal loans, make sure to check out some of the other information on our site. We have plenty of content that is sure to answer any question you may have.