04 Mar How to apply for bad credit loans from a reputable lender
One of the problems with applying for bad credit loans online is many lenders are not particularly reputable. This can leave you having to repay a loan to a company that not only charges you too high of an interest rate, but also has some less than reputable business practices as well.
This is why finding a reputable company offering bad credit loans should be your first step. Then you can apply for the personal loan you need.
Researching a lending company’s reputation — Start by looking for lending companies online that offer the type and amount of personal loan that you need. Once you have a list of them, spend time researching each company’s reputation and delete the ones from your list whose reputation is poor.
You can start your research at the Better Business Bureau, then read websites that review lending institutions. Just an hour of research should allow you to eliminate a good portion of your list, and keep those whose reputations seem to be solid.
Compare interest rates — Once you have a list of a few lending institutions online that do offer bad credit loans, and are reputable, compare the interest rate each one is offering.
This will help you eliminate even more lending institutions if their interest rates are beyond an acceptable level. Remember, as you do have bad credit, the interest rate on a personal loan will be high. It does not have to be outrageously high, however.
Acceptable repayment terms — There are some excellent websites that compare the repayment terms of different loan companies. These can be very useful when it comes to researching acceptable repayment terms, as you want to be sure the loan company you borrow from allows you a reasonable amount of time to repay the loan.
That means avoiding companies that expect you to repay a personal loan in less than a month, and going with a company that allows you several months or longer to pay back the loan.
Does the loan allow you to rebuild your credit? — For anyone that has a bad credit rating, one of your main objectives should be to start rebuilding your credit.
This can be partially done by taking out a personal loan, and then repaying it on time. For this to be beneficial for your credit rating, however, the loan must be taken out from a company that reports your repayments to major credit bureaus. If they do not, even repaying a loan on time will not positively affect your credit rating.
In other words, when you begin looking at companies offering bad credit loans, research them well, avoid companies offering poor or expensive terms, and go with a company that can help you rebuild your credit (check out NeedMoneyNow’s bad credit loans service).
If you do all of these things, you will eventually be able to get a personal loan without it being at bad credit interest rates and terms.