When applying for the loan, lenders may look at the credit score as well as credit history just to decide how much of risk it’s on them to give you money. Bad credit means you have the low credit score that can be because of various things such as short credit history, maxed-out cards and late payments.
Suppose you have poor credit and want Bad credit loans, you might have to narrow down your search to the lenders that provide you bad credit loans. Such loans are secured (that is backed by some collateral like car or home) and unsecured. Rates of interest, terms and fees for such kinds of loans differ by the lender.
Many credit unions, banks, and lenders online provide loans to people with bad credit; however the threshold for what is considered as “creditworthy borrower” differs by the institution. Many lenders have got stricter requirements that make it very important to shop over for the right option available here.
How Can You Get Bad Credit Loan?
If this isn’t the emergency, your first step will be improving the credit score so that you can afford that loan amount you want.
Consider paying bills on right time, particularly on the credit cards; lower your balance on the cards to below 30% of your credit limit allowed. Do not apply for new credit.
Combination of all these factors –low credit usage; on-time payment; and no new card applications – will account for 75 percent of the credit score. It is quite realistic to think making an attempt on those 3 fronts can increase your credit score by over 100 points in just 3 – 6 months.