Bad Credit Loan -- How to Get the Best Interest Rate

Bad credit loans are in high demand. And if you do any research on “bad credit loan”, you’ll find plenty of advice on how to get the lowest interest rate. You’ll also find plenty of people willing to give you a bad credit loan, but you’d be making a mistake to accept it.

Unfortunately, most of what you’ll find approaches the problem from the wrong direction. The way to get the VERY best interest rate on a bad credit loan is usually overlooked or concealed altogether.

But before we continue, let’s digress briefly and look at how significantly the higher rate for a bad credit loan affects the borrower.

Let’s say you want to buy a house, but have bad credit. No matter how diligently you shop for a lender, you’re still be charged a higher interest rate for a bad credit loan than if you had good credit.

With good credit, you might get a mortgage loan at 6% interest. But a bad credit loan will cost you closer to 12%. Assuming you get a $100,000 mortgage over 30 years, the difference you’d pay in interest amounts to a monstrous $154,461.60 MORE because you have bad credit. That’s over 1½ times the loan itself!

Now getting back to our original problem, how can you get a better interest rate for a bad credit loan? The answer is probably not what you were expecting.

The solution is to “think outside the box.” The way to get a bad credit loan with the best interest rate is to NOT get one! Instead, spend a couple of months fixing your bad credit, and then look for a “good credit loan” instead.

This answer probably comes as something of a shock to you. More than likely, several objections to this approach will come to mind.


1. “I need a loan NOW” or “It’s not worth my while to wait until I repair my credit.”

Oh really? Well, is it worth a savings of $150,000 or more? Granted you may not be looking for a $100,000 loan. But even if you want to borrow only $10,000 or so, the better rates you’ll enjoy with good credit will still save you several thousand dollars.


2. “Fixing my credit will take too long, or it just isn’t possible.”

It’s often possible to make very a significant improvement in your credit rating in just a few months, and in some cases as little as 30 days.


3. “I don’t know how to repair my credit and can’t afford to hire a credit repair agency”

For a fraction of the cost of a professional agency, you can purchase a good book on credit repair that will walk you through the whole process.

4. “Do-it-yourself credit repair is too difficult” or “I don’t think I can repair my own credit

Don’t be intimidated by the idea of fixing your own credit. If you can write a few letters, address, stamp, and mail them you can repair your own credit.


Your decision comes down to this; you have two choices.

1. You can spend some time (maybe a LOT of time) shopping for a bad credit loan with the lowest possible rate, and still end up paying thousands (even tens of thousands) more in interest.

2. You can spend some time fixing your credit and spend those thousands on your family’s needs, instead of paying them to your lender.

Do you really think your lender needs your hard earned money more than you and your family need it? Anybody can work on fixing their own credit. That’s right, anybody!

Get a good book on credit repair and get started TODAY!

For more about how to write a credit repair letter and how credit repair agencies can help you with the process of getting a better credit score visit us.

Bad Credit Repair

If you feel bad simply because you can’t meet your bills expectations at the moment they arrive, then you are not alone.

Even the best of us are struggling to meet some expectation that the system has placed on us.

We calculate weekly the amount we spend on groceries, which are constantly increasing, as well as other bills that are constantly on the rise.

It seems at times it is a no win situation, but the fact is there is always a solution to most problems. The problem most times is some of us do not have the means to find those solutions.

This brings forth more stress and often we feel that we are alone.

If you trying to build your credit status you need to find the resources that can help you get results.

The marketplace offers credit repair kits, which can lead us in the right direction to repairing credit, but the disadvantage is that many of the kits are expensive. Let’s face it, not everyone has the money to spend on commodities that claim to help us.

Some of us struggle harder than others just to survive. Life is forever changing and in order to keep up with the changes we all have to find a solution. Therefore, I am going to tell you where you can get a free credit repair kit.

Your local library stores a wealth of information and it is free to the public. In most libraries that have credit repair kits, credit repair books, or debt management solution books.

Anything you want at your disposal and it is all free information. The library also has copy and fax machines often, and if you notice in the credit repair guide or kit, it will have copies of the letters you can write to your creditors.

Make yourself some copies and once you fill them out as instructed, you are on your way to repairing your credit. The library also has guides or kits for filing bankruptcy.

If you do not see a way out, then you may want to go this route to repair your bad credit.

In most cases, you can do a Pro Bono Bankruptcy, which means you will represent yourself in the courtroom. I just wanted to let you know that if you file a Chapter 7 Bankruptcy, you will have monthly installments to make, but if you file Chapter 13 Bankruptcy then the courts wipe out all your debts. The problem is that bankruptcies remain on credit files for up to ten years or longer. If you can avoid bankruptcy do so, however it is not the end of the world if you do.

I know people personally that filed bankruptcy and was able to get loans for mortgage, cars and so on. If you know what you are, doing you can do anything no matter how bad your situation is. Avoid Debt Consolidation, simply because it is means you will be paying fees and costs to others to get out of debt, which only adds up the bills. You might want to consider a Debt Counselor from a respected organization. It makes sense to check out any business first before spending money or asking for services.

The BBB offers free information on organizations, businesses and corporations. Once you have investigated the service then you will know if the people are really trying to help you. Any service that tells you they can get you out of debt in no time at all is pulling your leg. The fact is even when you pay your bills your credit will continue to list all the bad debts, it will only say after the debt listed - Resolved.

It is important to get copies of your credit reports from TransUnion, Equifax, and Experian. You can find any information you need online.

Knowing your status in life is the beginning of repairing bad credit.

For more about how to write a credit repair letter and how credit repair agencies can help you with the process of getting a better credit score visit us.

How To Use A Secured Credit Card To Repair Your Credit

If you have ever had credit cards, paid a bill monthly, or obtained a loan, you have a credit rating. When you make payments to a creditor, they report these payments to credit reporting agencies that compile your credit report and track your credit history. If you miss a payment, or even worse, your debt gets sent to a collection agent, this affects your credit rating negatively, and may prevent you from obtaining more lines of credit when you need them in the future.

As soon as you realize you are in this situation, it is crucial that you immediately begin to make an effort to repair your credit rating. To most people, this seems like a difficult thing to do, but doing nothing to repair your credit will only prolong the damage for up to seven years. Until your credit is better, you will find that you are barred from any type of loans or even activities that require credit, such as renting a car.

One way to repair your credit is to obtain a secured credit card. You may wonder how this is possible with bad credit, when you will most likely be declined when filling out a credit card application. However, without a credit card, you will have a hard time proving to creditors your responsibility in making payments on time.

Try a secured credit card. Secure credit cards are marketed specially toward individuals with poor credit. These credit cards work when the customer applies a deposit equal to their credit limit. For example, if you make a deposit of $100, your credit limit will be $100. The credit card company then be use your deposit toward any balance on the credit card resulting from late payments.

This type of credit card is risk-free for the company that issues it, because they can always deduct the balance from your deposit, so it makes sense to issue these cards to people with poor credit. One drawback to secured credit cards, however, is the annual fee that most regular credit cards don’t charge.

After you have obtained one of these secured credit cards, use it sparingly but regularly, and make sure you mail all of your payments on time. This will enable you to slowly, but surely, repair your credit. You will demonstrate to your creditors that you are trustworthy, responsible, and pay your bills on time.

Taking steps towards repairing your credit will eliminate the risk of keeping your credit rating “poor” for up to seven years. However, after seven years the black marks on your credit will finally be taken off, so waiting is always an option. If waiting is not an option, take the necessary steps toward credit repair. Obtain your secured credit card, use it responsibly, and reduce the seven-year sentence of bad credit.

For more about how to write a credit repair letter and how credit repair agencies can help you with the process of getting a better credit score visit us.