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How To Find Bad Credit Lenders
First, what is a bad credit lender?
A bad credit lender is normally a small company, not a bank, that offers loan programs to individuals or business owners that have no credit or bad credit.
Generally speaking, banks only offer loans to individuals or business owners that have good credit.
A credit score of 600 or above would be rated as having good credit.
You maybe thinking, do you have good credit? The best way to find that out is to order your credit report and score online.
Another way to find out if you have poor credit is to ask yourself:
Have you been late on your payments more than three times over the last 6 months?
Do you have any closed accounts on your credit report?
Have you ever filed for bankruptcy?
Do you have any judgments on your report?
If you have answered yes for any of the questions above, you have no credit or bad credit.
What About Loans From A Bank?
Banks are not in the business of giving individuals loans that have no credit or bad credit. If you have no credit or poor credit, you must look for companies that offer loans to individuals that have bad credit.
You would just make your credit worst by applying with a bank, because your credit score is reduced every time you are turned down.
How To Find A Bad Credit Lender?
The best way to find these types of lenders is to go online and purchase a list of poor credit lenders. I am not aware of any websites that offer this information for free.
Order a list of lenders and contact each one by phone, to go over what they can offer.
It would help if you can get a copy of your credit report before contacting a lender. This would make their job easier because you can just tell them what is on your credit report. They could immediately tell you if they can help you to get approved for a loan.
Be sure to tell each company what is on your credit report. This will save you and the company a great deal of time.
Do not apply with companies that only want to check your credit before they will talk to you.
Even if they were not willing to review your credit report over the phone, you could still ask them what type of credit do they accept. Some companies can tell you up front that they do not accept individuals that have an R9 on their credit report.
Do not apply to a lender that charges an application fee. It is illegal for a lender to charge an up front application fee. A lot of companies that charge an application fee are not lenders. They are marketing companies that are just going to send your application to a lender.
A lot of people try using their local newspaper to find a bad credit lender. This is not a good idea, because you will only find marketing companies that charge a fee to accept your application. Once you have sent in your money and application, they would forward your application to a lender.
Take the time to go online to find the best current list of bad credit lenders.
Being Careful With Credit Cards
When it comes to getting equipped with a credit card, many people are aware of the advantages and disadvantages, but few are aware of how to ensure that they are getting the best deal through being careful about the credit card provider they use, and ensuring they have read the terms and conditions, and are therefore aware of all the cost centers that will affect them during their contract.
Watch out for:
Annual Fees Not all credit card providers will charge an annual fee, but by the same token not all those who do charge an annual fee will necessarily be the least cost-effective. Keep in mind that different credit card providers will charge in different ways, and being away of the ways you are charged means you get the best deal, and can budget for these expenses.
Late Payment Charges Should your credit card payments be later than expected then as well as the interest still being due you will have to incur a late payment fee. This is justified by the credit card providers through the consideration that it could cause cash flow problems, and may mean that their financial planning could be off-set or not as projected. Late charges should be a consideration when costing a credit card; a great way to avoid this is to set up a direct debit so your payment is taken directly out of your bank account.
Exceeding Your Limit When you exceed your credit limit the likelihood is that you will be charged, unless you make prior arrangements with your credit card provider. You should be aware of what these charges are before you enter into a contract with a credit card provider. To avoid these costs, many choose to take out another credit card to finance clearing the limit, whilst others may look towards short-term solutions like an overdraft or long-term solutions like a bank loan. Please be careful not to spend money on a credit card unless you can afford it.
Avoid:
Small Companies Avoiding small companies can ensure that you do not come across problems that would not face well-known, reputable house-hold names. Should a company be a public limited company/listed company or be owned by such then the inherent risk of unfair contract terms and a shift away from best-practice are significantly reduced by PR factors and media pressures/influences.
High APR/0% initial APR Choosing to contract with a credit card company that offers a great introduction rate and a higher rate in the long term is relying on your lack of financial control to make money. If you are not in total control of your finances and ultimately earn less than you make then please avoid these at all costs.