Credit score, otherwise known as FICO score, is a number that is used to tell the credit history of a given person and this varies from 300 to 850. A person with a score below 600 is considered to have bad credit and there are some lenders who will hesitate to loan out cash to such people. Other lenders will give you the amount of cash that you apply for but this will be offered at higher interest rates and very strict terms & conditions.
How to get good loans for people with bad credit
Use the same lender- this is a simple tip but it works great where you apply for your loans from the same lender. After getting several loans from the lender, you will be considered as a regular customer and this will still continue even after your credit score worsens as this can at times be caused by unavoidable circumstances. Such lenders will not only give you the funds easily but you may also benefit from lower rates and some friendly terms.
Check out offers by different lenders- after searching for the lenders who offer bad credit loans, you should then request a number of them for their quotes. The next step should be to carry out quotes comparison and this will assist you in getting good loans for people with bad credit. This is a case where you will be allowed lower interest rates, flexible terms & conditions, better repayment periods and the amount of cash that you need.
Pledge collateral- to convince the lender that you really intend to repay the amount of cash you are applying for, you should consider using collateral to back up your application. The collateral should be any valuable asset that the lender you choose can seize to use it to raise any amount left owing at the end of the loan period. If you dont own any valuable asset, you should find a guarantor and all this will help you to get good loans for people with bad credit.
How to rebuild your bad credit
You can make use of these good loans to improve on your credit and this is possible by:
Keeping lower debts compared to your credit
Keeping longer durations with the loans
Making prompt repayments for the loans
Strictly observing all the terms and conditions that you agreed to