Business & Finance Personal Finance

How to Qualify for a Personal Line of Credit With Bad Credit

    • 1). Check your credit reports for discrepancies or wrong information. You are entitled to one free credit report annually from each of the main reporting agencies, Equifax (equifax.com), Transunion (transunion.com) and Experian (experian.com). Visit these sites directly to obtain your free credit report. Notify the agencies of misinformation. This can increase your credit score and help you qualify for a personal line of credit.

    • 2). Apply for department store credit cards. These cards tend to carry higher interest rates than other credit cards, but they are more lenient with whom they approve for a credit line. Pay your balance off each month with these cards to avoid the high interest rates. Establishing a stable credit history can improve your credit score, and help you gain approval for a personal credit line.

    • 3). Visit your bank or credit union. Sometimes, these institutions can provide you with a personal credit line based on your past relationship with them. Often, banks will give benefits to long-time customers.

    • 4). Apply for a secured card. Secured cards are backed by the user's bank account. You must deposit a certain amount of money, and that money becomes your available credit limit. Using a secured card without missing payments is a way to improve your credit history and score, as most secured-card providers report to the credit bureau regularly.

    • 5). Apply with a co-signer who has good credit -- and whom you can trust. This can make the difference in qualifying or being rejected for a credit line. Like the adage says, "It's not what you know, it's who you know." If you have a friend or relative who is willing to co-sign, you become less risky in the creditor's eyes.

Related posts "Business & Finance : Personal Finance"

Is Interest From a IRA CD Taxable?

Personal Finance

Personal Wire Transfer Bank Report Requirements for the IRS

Personal Finance

List of Massachusetts Credit Reporting Agencies

Personal Finance

How to Identify Canadian Paper Money

Personal Finance

Can a Person's Social Security Check Be Garnished?

Personal Finance

Instructions on How to Create a Budget

Personal Finance

How to Sell Prepared Scrap Metal

Personal Finance

Social Security Benefits for a Caretaker of the Medically Disabled

Personal Finance

Can an IRA Rollover/SEP Account Be Self-Managed?

Personal Finance

Leave a Comment