Loans For Borrowers With Horrible Credit

Only you know for sure what happened in your life that has made your credit score plummet to the level that banks refuse to consider your loan application. If you have moved past that part of your life now, you might be thinking about rebuilding your credit file, but have no idea, short of filing bankruptcy, how to go about it. Your ultimate goal to rebuild you new credit is to obtain a bad credit loan that can help you rewrite credit history, and your best shot at getting that loan is to apply for it online.

Although you may have become accustomed to rejection by lending institutions, there are special online lenders who work hard to service loans for those with damaged credit. These lenders have been known to sometimes provide funding for scores that are only in the 500s.

Check Your Own Credit

Before you make your application for your online bad credit loan, you should get a clear picture of where you stand financially by obtaining your credit report. Because there are three major credit bureaus, you should pull your report from all three to make a comparison.

Typically, each will have a different view of your credit. By making a comparison of the items that are being noted on all three reports, you can look for inconsistencies and errors. Check the balances that are noted for all accounts, and compare the figure to what you have on file. For instance, if you have a credit card with a $5000 limit, then each credit report should reflect that amount, as well as the amount of the highest balance you ran with the card.

This is useful in determining your credit available versus credit used ratio, which is an important factor that is considered by potential lenders when they decide to give you credit, and in what amount. Note anything that does not appear to be correct, or accounts that you do not claim as your own or do not recognize. Any erroneous information will be deleted within thirty days by the credit bureau that hold it, if their investigation provides evidence that the information is wrong, or that an account does not belong to you. You are legally entitled to one free copy from each bureau annually. You may have to pay extra to receive your FICO score.

Budgeting For A New Payment

Now that you have a clear picture of how your credit stacks up, make a budget to assure yourself that you are able to afford a loan payment. A simple budget is easy to draw up. First, determine how much income you have coming in each month; if you are married or share the bills with someone, you may include their income if they plan to help you repay the loan. Next, list every debt that you owe, including credit cards, loans, mortgage, etc.

You will not put an average on your utility payments, such as electricity, gas, water, telephone, and sewer service. Allow for food and other household supplies, as well as transportation to work. Subtract the amount you have going out in terms of income to the amount coming in. This will give you an idea of how much you can afford to pay each month for your new bad credit loan.

Get Your Loan

Once you have the figure, you can visit the online lender of your choice on their website. You will be able to apply online and receive your cash in minutes, usually delivered electronically to your bank account.

By applying for your online loan, you not only have a better chance to be approved, you will also have the satisfaction of knowing that you will be paying the least amount of interest possible on your new bad credit loan, which will save you lots of money.

Bankruptcy Loans Online in Minutes

Nothing about credit is forever, even bankruptcy. Although a bankruptcy can legally remain on your credit file for up to ten years, many borrowers find that they can easily find financing once their bankruptcy is discharged, by using an online lending institution to service their post bankruptcy loans.

You may have heard rumors that you will never get a loan now that you have demonstrated your lack of responsibility by walking away from your debt and filing bankruptcy. But the number of individuals with multiple bankruptcies in their credit file stand as testimony that there are creditors who will give second, even third chances, to borrowers who were forced to file bankruptcy.

Know Common Pitfalls

But before you search for your online lender, take a look at your financial habits to figure out what lead you to filing bankruptcy in the first place. By doing so, you will be more able to see potential pitfalls with your new online post bankruptcy loan, and help you make become a creditworthy borrower.

There are three main reasons that people fall victim to bankruptcy.

The most common is overspending. Learn how to make a budget and stick to it. This means that your new credit should not be the means by which you enable overspending in your life.

The second top reason that bankruptcy becomes the only option for borrowers is job loss. Start out on a good foot this time around by establishing an emergency fund of at least three months worth of living expenses. If you lose your job in the future, you can fall back on this fund while you look for work. Never dip into the fund for other reasons.

Medical bills that stack up from an illness or injury are often more than some people can afford, and that is especially true for those who are uninsured. If medical bills were the reason that you were led to file bankruptcy and you still do not have medical insurance, consider changing jobs to get the coverage you need. Look for coverage that includes not just medical and dental coverage, but a policy that offers short-term and long-term disability benefits as well; this type of coverage can help you keep your paid up if you become ill in the future.

Assure Accuracy Of Your Credit Report

Once you have identified your poor habits or the reason(s) that resulted in your bankruptcy, you should pull your credit report from the three major reporting bureaus. Check each report to ensure that any accounts that are noted as open or overdue (but were included in your bankruptcy) have been wiped out. Many, many times, you will find erroneously listed accounts on a credit report that should have been noted as discharged in bankruptcy.

Claim Your Money

You are now ready to apply for your new online post bankruptcy loan. Head to the lender website of your choice. From there, you will be able to launch your application, get approved, and have your money delivered to your bank account via an electronic funds transfer (EFT). Use the proceeds of your loan wisely. By showing your willingness to take responsibility of your credit, you prove to lenders that you are a borrower worth the risk.