Wednesday, 31 August 2011

Bad Credit Loans and How to Improve Them


















At the moment, money is a problem for everyone, no matter how much they have, and at the rate that the credit crunch is taking affect, it isn’t going to get any easier. Currently, a perfect credit score seems an impossible target to reach, and with no help coming from the economy, banks and lenders stay away from less than perfect credits scores like they are the plague.

You are probably now thinking, “Where does this leave the millions of people who need a loan or a mortgage who do not have this incredible credit score?” The way these people can get the cash they need is what is known as a bad credit loan. However, if you need even more money, then the following helping hands can improve your success rate of being accepted for a bad credit loan.


Watch your Purchases

This may seem like an obvious thing to do, but it is definitely worth while in the long run. There are always expenses that we forget about, but they all add up over a month. There are many tracking systems online, but making your own on excel or eve just writing them down is just as easy. This way, you can take your statements along with you to the lender to prove you have enough money.

Keep old credit cards active

For a long time, the general rule from experts has been to close down existing accounts in order to improve your credit score. However, there has now been a change of views, and the consensus is to keep them open as if they have no debt, they positively contribute to your credit rating. If you are thinking of applying for a larger sum of money via your bad credit loan, under no circumstance close any cards. This will not work, and if some cases, could potentially make your score even worse.

Hard working bad credit loans

It is always a battle in these cases, but bad credit loans will give you the advantage that you need in your credit score fight. When applying for your loans, go through many different lenders that send your reports to the bureaus as this will show that many companies see you as a good asset.
Follow all of these hints and tips, and your bad credit should be wiped away in the quickest possible time.