One of the things we get asked most often is “how do I get a loan with bad credit?” One of the best ways to get a loan with bad credit is to apply for a personal loan. There are a number of legitimate ways to do just that, including here on our site. There are several different places a person can apply for a secured or unsecured personal loan: a bank, finance company, or payday loan office. Each type of organization may require an application fee to initiate the lending process – it’s a common and allowable business practice. An applicant knows when they visit a loan company’s office that they’re doing business with an established company that actually provides the services they are paying a fee to obtain. Online or over the phone however, it can be harder to tell if a personal loan service is legit. There are a number of advance-fee loan scams that prey specifically on people wondering how to get a loan with bad credit.
Advance-fee loan scams involve various mechanics. They are all geared to get the applicant with bad credit to pay an advance loan fee by either: wiring money, paying by credit card, or sending money order, check or cash to complete their lending process.The advance-fee scams mechanics typically involve first contacting people with bad credit by phone or via online solicitation. Second, scammers qualify them without obtaining their credit history, promising to complete the lending process by sending the loan principle after the advance-fee is received. It’s not uncommon for advance-fee scam artists to conduct their operations under a copycat name- pretending to be reputable and well-known lending organizations. Always take pains to verify the authenticity of an online loan if you have bad credit and are instantly approved. Requesting a call back number to validate the lending company’s authenticity provides little or no protection from fraud- anyone can spoof a phone number or simply give out a fake number.
How to Get a Loan with Bad Credit
There are several warning signs when looking for a loan online. Be wary of lenders that don’t care about your credit. No matter what it is, your credit history matters to a lender. You can save time by checking your credit and knowing your score beforehand. Any so-called lender that doesn’t care about your credit at all is suspect. Shady lenders will also put a lot of pressure on you to act now. Saying things like “you can only get this rate if you accept and send us the loan fee today!” With a reputable lender you will get paperwork and talk to the lender about your options before ever sending bank or credit card information. Yet another warning sign in the bad credit loan scam business is if the lender reaches out to you first. If you weren’t even looking for a loan and all of a sudden someone emails you saying you’ve been approved if you just send over a loan fee, chances are it’s a scam. Finally, it’s typically not wise to transfer loan fees via wire, as wire services such as Western Union can be difficult to track, unlike credit card transactions. The one thing to remember when wondering how to get a loan with bad credit is if it seems suspicious, it probably is.
You should definitely be cautious when trying to get a loan online now, but that’s not to say there are no options for getting a loan if you have bad credit. One of the best things you can do to start the loan process safely is to know your credit score. Knowing your own credit score helps with all loan application processes, and will speed up the approval process and let you see the types of loans you are eligible for. It also prevents a company from running a hard credit check which can hurt your score. With your credit score in hand, you can go through a process like our personal loan discovery program, which is aimed at helping match people with all ranges of credit scores with the personal loan that is right for them. Through the loan discovery program, you are matched up with a loan advisor to guide you through the process, and there are no advance fees required so you can rest assured you’re not being scammed.
How to Improve Your Credit Score
Before you ask how to get a loan with bad credit, it might make sense to first ask, how can I improve my credit score? The only way to improve your credit score is by being a responsible borrower, paying all bills and credit debt on time each month. The easiest way to do that is by opening a beginner credit card, such as the Freedom Gold Card. The Freedom gold card is a credit card for people with bad credit who want to start boosting their credit score by regularly spending on the card and paying it off. This card is ideal because approval is essentially guaranteed, and you get a $500 credit line with which you can make everyday purchases. This almost goes without saying, but make sure you never spend more on a credit card than is in your bank account. It may seem like common sense, but to those unfamiliar a credit card can seem like $500 cash that you didn’t have before, so you might as well spend it. That’s okay if you have $500 in your account to pay it off with, but if not credit card debt can spiral out of control and end up hurting your credit score even more. That said, if you have bad credit and you use a credit card responsibly, you are taking steps to improve your credit score and making yourself a more viable candidate for a loan. Responsibly using a credit card for bad credit can be a safer alternative than Payday Loans or advance fee loan scams. To summarize, a common question is how to get a loan with bad credit. The answer is not by sending money in advance to a shady lender. Improving your credit and knowing your credit score are great first steps in safely securing a loan online with bad or fair credit. Be informed!