Understanding Bad Credit Personal Loans
Are you one of the many Americans who have a bad credit score, and is seeking out bad credit personal loans? If you are, you are not alone. We at Loans Now have worked with over half a million consumers who have bad credit, poor credit, and no credit. Helping individuals obtain bad credit personal loans is on the thing we specialize in.
Understanding the Consumer
One of the profiles we encounter the most is the consumer who is seeking out personal loans with poor credit. Also, he/or she does not want to perform a credit check or has provided an old or out of date credit report as we advertise loans no credit check. This is perhaps one of the best things about Loans Now. We understand that once you have hurt your credit score, come to find out it is bad, had a major life incident looking at your financial status can be stressful. Most of our clients adhere to the thought out of sight out of mind. This is once they discover that they have a bad credit score.
Emotions and stress make it hard to once again become engaged in your financial well – being, people tend to become complacent and only search out personal loans with poor credit or bad credit personal loans. Well, the Loans Now team has encountered this so many times we have to say that there is hope. Yes, we offer bad credit personal loans, but that might not be what you need or have to obtain.
We have navigated this process so many times. Doing this we have learned that while you might think low credit loans or loans no credit check are the answer. We have found out that it is not always the case. In this article, we will discuss the reason we think you may qualify for more than you think in your search for a bad credit personal loan. After this, you can decide if you still fall into the poor credit loans category. Or now with a little insight qualify for personal loans for fair credit or even better good credit.
What about your Credit
Are you sure you know what your credit score is today? That is the first question we ask in the Loan Discovery process. Most consumers do not or are basing their data on an old or outdated report. But surprisingly we meet a lot of consumers who have no idea. They do not want to know they just want to get through the process. “I just will deal with a bad credit personal loan” is a common phrase.
What “we” Hear
When we ask why they state one of several reasons but these are the answers we hear most commonly.
Most common is “I know I have had worse in the past credit so I don’t need to check it.” We identify that as the out of sight out of mind consumer. Next, we are told that identifying or “checking their own credit gives them anxiety.” This consumer will just be satisfied with poor credit loans. We identify that as the emotional or stressed consumer.
“I have had bad credit my whole life, nothing is going to change that and I cannot afford credit repair.” This is what we identify as the complacency consumer. This is one of the hardest things for us.
Things change with time not always money so a bad credit personal loan is most often not necessary. Finally, we face the cost issue. I cannot afford to pay to look at my own score or I get my score for free. This is one of the greatest mistakes most consumers make when seeking out financing.
Checking your Credit
Obtaining your report and knowing where you stand is imperative for a number of reasons. First, if you know your score that could prevent you from applying too many times which could drop your score. Second, you can avoid obtaining poor credit loans which are far more costly than the fee to obtain your credit report. “I already know my score, why should I pay for a credit report?” is the second part of what we identify as the Cost consumer.
Most free credit score providers do not provide all three scores. Knowing what your score is from all three credit monitoring agencies Transunion, Experian and Equifax are again very important as they often vary.
Our point is that it is better and often cheaper to go into a loan search with the most up to date comprehensive and accurate information as possible. This might prevent you from seeking out personal loans with poor credit scores. That could save you thousands in interest payments.
To identify your score go to the Loans Now Check My Credit Score page and get started.
Applying what you Know
After identifying your score you still fall into the personal loans bad credit category? All is still not lost. In fact, you should now be able to identify not only what your credit score is, but what is on your credit report. That is important for a few reasons the first being you could discover any errors that you may have. If you do discover any errors you can contact that individual credit reporting agency and dispute it.
Disputes can take time but they can prevent you from obtaining poor credit loans. The other reason it is important is that you now can see exactly what is on your credit report. That is important because of a formula we discussed earlier called DTI or debt to income ratio. Why is knowing your debt to income ratio so important?
If you have a bad credit score having a low debt to income ratio can help in the decision-making process and give you an advantage. Having a low DTI shows the lender that you have a better understanding of your finances and the possible ease of you repaying the loan without defaulting. Your credit report shows your history or why you have a bad credit score? Your debt to income ratio reflects where you stand currently and what has changed for you financially.
Using the Loans Now DTI Calculator can be in your best interest when deciphering your financial picture. Having a low DTI might move you from low credit loans to personal loans for fair credit lenders. That is why we say that you might have bad credit but you don’t have to settle for low credit loans.