Category Archives: Bad Credit

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Bad Credit Personal Loans – 100% Guaranteed Approval

This article has been updated.  Back when it was written in 2009 we had several guaranteed approval lenders.  The economy has changed and most of these lenders are gone now.  There are still bad credit lenders on the market though.  I’ve updated this article to talk about who they are and how to get approved.

Having bad credit can make it difficult for a person to get approved for 3D Credit Risk Crosswordstandard loans from banks or credit unions.  Subprime loans are loans that are  targeted to service consumers with lower than average credit scores.  These loans usually have higher interest rates and may have fees, but that is to be expected when dealing with a legitimate sub prime lender.

Sub prime lenders got a bad reputation back in 2008 when the mortgage crisis started to hit.  And it wasn’t just sub prime lenders that took advantage of bad credit consumers.  Little regulation allowed unscrupulous bankers to charge enormous fees to unsuspecting bad credit borrowers.

Now there is a lot more regulation AND with the help of the internet.  Consumers are more informed and not falling for a lot of the scams that were rampant back then.

Hey, I’ve found a low interest bad credit loan!

Be very careful when you see a bad credit lender offering lower than normal rates to people with bad credit.  We have had clients tell us they were offered (over the phone, thru an unsolicited phone call….) extremely low rates for an unsecured personal loan.  We tell them this, low interest bad credit loans truly don’t exist.  The higher interest rate charged is because of the higher than average risk of default associated with bad credit financing.

When you see online banks  or unsolicited phone “lenders” offering better interest rates than normal banks but saying they will approve bad credit….look at the fine print.  Many times you will see that the following is true:

  • The line of credit can only be used in their catalog or shops
  • There are a lot of fees associated with the line of credit.  In some cases they give you a $500 line of credit but their fees total $495
  • They make no guarantee that you will actually be approved at that rate.  A few days go by, they tell you only 1 bank was willing to give you a good credit line.  But its only for merchandise they sell.  They then tell you they can get you an unsecured credit line but its will be at the rate all the other bad credit lenders are offering.  Only difference is they may tack on a “finders fee” of 1 or 2 % of the loan amount as their fee.

When applying for a loan and you know you have a low credit score, or high than average debt load.  Be realistic.  Having worked in business financing for over 20 years I’m constantly surprised when someone sits down at my desk and wants to tell me a “story” that will make me want to ignore their low credit score and almost non-existent financial documentation.  Let me tell you, it doesn’t work.

Tips to help you get approved for a bad credit loan

If you plan on going into your local bank and applying for a loan, here are some tips to help you get approved

  1. Instead of making the lender focus on the negative aspects of a deal, they should focus on the positive aspects.  Why does it make sense to make this loan to you.  What has happened recently to make it less risky to lend you any money
  2. How do you plan on paying back the loan.  Make it clear
  3. How have you been improving your credit situation.
  4. If you have a lot of debt, explain how you uncured the debt and what you have been doing to bring it down
  5. Have a letter of explanation for the low credit score or high debt ratio available.  Be ready to answer questions about how and why you think this loan will help you, and how you plan on paying back
  6. Make sure that you have some money in the bank – if you are flat broke AND have bad credit AND have no means of paying the loan back.  You would be better served looking for a loan thru friends and family.

Where to find bad credit financing:

Badcreditresources.com list both financing options for bad credit personal loans and credit cards.  They also have a section on bad credit business financing.

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No Deposit Credit Cards for Bad Credit

When speaking of bad credit, many people instantly think about secured credit cards as the perfect tools for repairing damaged credit. But did you know that there are credit card issuers today that offer unsecured accounts for people with bad credit? Yes! This special type of bad credit credit card is called unsecured credit card for bad credit.

As the name suggests, this type of credit card is offered for people who have a poor credit score, bad credit history, or no credit history. Nevertheless, unlike a secured credit card, an unsecured card does not require a cash security deposit. There is no need to submit a down payment in order to open an unsecured bad credit credit card account. Continue reading

In Search for Unsecured Bad Credit Credit Cards

Finding a credit card when you have poor credit history can be a challenge. Many credit card companies advertise low APR, minimal fees, and great rewards but upon closer look, you’ll discover that these credit card deals are only for people with good to excellent credit. Does this mean you have run out of options? Certainly not!

It is comforting to know that having bad credit does not need to be a hopeless situation. A low credit score is something which can be improved and you can start by acquiring a credit card that is especially designed for bad credit.

There are many types of bad credit credit cards in the market and choose one that is most suited to you. For example, you can apply for a secured credit card or a prepaid debit card. Both of these bad credit credit cards are popular these days precisely because many people are in need of credit repair. But did you know that there are also unsecured credit cards for bad credit?

Yes, unlike a secured credit card, unsecured bad credit credit card does not require the submission of a cash deposit. Therefore, if you’re not prepared to submit $300 of cash deposit and leave it in your account as security for your debt, you can choose an unsecured bad credit credit card. Continue reading

How to Find A Good Bad Credit Car Loan Deal

by: Shelly Evans

If you have bad credit, you may find it a lot more difficult to find a reasonable loan deal. Many lending companies that advertise low rates have very strict credit requirement. This is why consumers are advised to wait until their credit improves before seeking a car loan or any type of financing.  But what if you need to buy a car at this time? Does this mean you have no other option? Continue reading

Facts About Unsecured Credit Cards for Bad Credit

If you suffer from bad credit, it is likely that you will not qualify for a regular credit card because most issuers require at least good or average credit. Do you have other options? Yes, you do. In fact, you have a number of options.

You may choose to get a secured credit card which requires cash security deposit. You can also get a prepaid debit card but it does not provide you with a credit line. You can only use your prepaid card as long as you have available funds in your debit account.

Another option is to apply for an unsecured bad credit credit card. This article focuses on this particular type of credit card for bad credit. What is an unsecured bad credit credit card and what makes it different from other bad credit credit cards? Continue reading

How to Acquire an Unsecured Credit Card for Bad Credit

By: Shelly Evans

When in will need of a credit card but with poor credit, lots of people are advised to apply for a secured credit card. But did you know that there are unsecured credit cards provided for those with bad credit? Unlike a secured card, unsecured credit cards don’t call for a security deposit.

In this post, let’s discuss the actions you should do in case you wish to get an unsecured poor credit credit card: Continue reading

Credit Card Cure for Bad Credit

By: Shelly Evans

The wrong use of credit cards can quickly lead to bad credit. If you’re inside the habit of running up high balances on your credit card or credit cards, you’re in danger. If you’re content with just submitting the minimum payment, the risk of incurring bad debt is a lot greater.

On this post, let us talk about how it is possible to use your credit card to cure bad credit. Continue reading

What You Should Know About Bad Credit Lending

By: Shelly Evans

A person with bad credit history often finds it a huge challenge to apply for new credit. This is because many lending companies use credit history and credit score as major determinants on whether to approve or decline an application. Does this mean the doors of opportunities have all been locked up for people with bad credit? Not necessarily!

In response to the great demand for bad credit financing, there are lending companies today that offer loans for bad credit. That means, poor credit does not need to be hindrance in getting the financial help you need. Nevertheless, because of the higher risk involved in extending loans to people with bad credit, the rates and fees are expected to be much higher than standard loans. Continue reading

How MUCH Does Bad Credit Cost You

By: Shelly Evans

Are you aware of your personal credit standing?  Did you know that having a lower score can cost you a lot more on various aspects of your finances? In this article, we will take a closer look at how much bad credit can literally cost you and what you can do to avoid the extra costs.

Why Credit Score Matters

Many people are aware of the fact that lenders prefer customers with good credit. If you have bad credit, you will be considered as a “high risk customer” and therefore, must pay a higher price to make up for the risk. In fact, the lower your score is, the higher the interest rate and fees are most likely to be. Continue reading