If
you have a FICO score that is lower than 580 this is termed as having a poor
credit score. It is possible if you have such a rating that you will struggle
to get a traditional loan. The loans that are possible to get tend to have
higher fees and interest rates. An option in this situation is to look for bad
credit loans Lakewood or where you are.
What you need to do leading up to
getting a bad credit loan
Look at your credit reports and score
The
first thing you need to do is know exactly where you stand in terms of your
credit score and what the reports say. There are a few ways you can find that
out for free, there are credit card issuers and lenders who can tell you what
your credit score is and you can get free credit reports. Keep in mind that
even for some cash loans Lakewood there are different scores and you don't
always know which the lender will look at.
Make sure alternative options are not
available
Before
you start applying for various cash loans Lakewood you should check there are no
alternatives you can use. Bad credit loans come with higher costs, and you
don’t want to be struggling to pay for a loan if you do not really have to.
Look at friends and family, short-term options like pawn shops, selling
something of value, and getting a cosigner who has a good credit score.
Be prepared for how much a loan like
this will cost
When
you get a loan you have fees to pay and interest rates to pay on top of what
you borrow and then have to pay back. With a bad credit loan, those numbers are
higher because you are more of a risk to lend to. Make sure you understand what
you are actually paying and use the APRs to compare loans to get the best one
possible.
Look for reputable lenders
Not
all lenders offer bad credit loans Lakewood so you need to find lenders
who do, and make sure they are reputable. A lot of them are online but some
credit unions and banks will offer this kind of loan, just in smaller amounts.
See if your lenders will give
prequalification
When
you do not want your action to affect your credit score any further you can
look for lenders willing to give prequalified loans. You just have to send some
simple information and let them do a credit check but it should be a soft
inquiry so it does not impact your score. It is only when you send in a proper
loan application that means they have to do a hard inquiry that can affect your
scores. Being pre-qualified also lets you see their terms, loan amounts and
estimated rates so you can then decide whether to submit a proper loan
application. You do not have to deal with the concern over the impact of a hard
inquiry, or being rejected.
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