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Unsecured Bad Credit Loans: opportunity to restore your credit history
Things dont go always as per your plan. Ups and downs are expected in everybodys life. Even a divorce, loss of employment, pending court proceedings etc can cause such situations. Even financially sound people sometimes face unexpected financial crunch and at that moment he or she becomes hapless. Then, their credit history became tarnished and they assume Bad Credit History. Almost every bank or financial institution doesnt prefer to lend money to such credit holders. This often leads to denial of loan applications or else, lenders charge exorbitant interest rates on the loans proffered. So it becomes even tougher to get a loan for them. For such individuals, the best possible option is to go for an unsecured bad credit loan. With the help of these loans one can meet any of their financial requirements like paying off impending debts, meeting urgent financial emergencies, filling their childs college or school fees, etc.
The main attributes of these loans are that anybody can apply for these loans, irrespective of whether he or she is a tenant or house owner; good credit holder or bad credit holder, entrepreneur or consumer, employee or employer. Another salient feature of this loan is that you need not to mortgage any of your assets as this keeps you away from the worry of loosing your collateral to the lender in case you are unable to make payments towards the loan. But that does not mean that lender can’t claim the money he lends as unsecured bad credit loan and may resort to other legal cures to reclaim his money.
This deal provides you with an opportunity to redeem your poor credit history by keeping your payments on time which can further lead to the improvement in your credit score gradually. You must remember that all your payments are reported to the credit reporting agencies.
The amount that you can borrow for an unsecured bad credit loan can vary with lender. The lenders for these loans will provide money ranging from £500 to as high as £25,000. Since the interest rate is high, you should borrow only that amount which you would be able to pay back easily.
Filing for bankruptcy can be the first step to restoring your credit
So, a Fresno bankruptcy can actually start you on the way to good credit? This is a critical question to ask your Fresno Bankruptcy Attorney. First of all, you need to understand that the old adage: “the bigger they are – the harder they fall.” Comes into play here.
If your credit is in the 700’s or higher. It is true that your credit is going to take a significant drop after filing for bankruptcy. However, most people that file bankruptcy have been struggling to keep up their payments for a long time. So their credit is already in the 500’s or so.
The way credit companies rate your credit has to do with the high balances you carry on your credit cards and how many slow pays that show up on your credit report. Once you file for bankruptcy, the balances are wiped to zero and the credit companies can no longer report any late payments.
So your credit slate has been wiped clean. Typically a person will see a big drop in their credit for a short time, but as you start to make smart financial decisions your credit will begin to grow. Your late payments no longer appear and you don’t show high balances.
People often receive an offer for a credit card within 6 to 9 months of filing for bankruptcy. Of course the rates are very high. If you choose to to accept a credit card, be careful! Only use the credit card for gas and incidentals and pay it off every month.
After a year or so, you’ll be able to purchase a car on credit. But don’t run out and purchase the car of your dreams. Look at that car as a credit tool. Buy a car that represents very affordable monthly payments that you can pay off in three years. Remember, this car is not your dream car. It’s a car to get you back into the American Dream. It will help you re-establish credit.
In conclusion, people often ask if bankruptcy will ruin their credit. The true fact is, most people already have bad credit and the quickest way to start a new credit life is through a thoughtful bankruptcy.
Obviously, each person needs to make the decision to declare bankruptcy with caution and with sound legal advise. We suggest you contact a Bankruptcy Attorney in Fresno to explore all of your options.
You can contact the Winter Law Group at