Bad Credit Loan -- How to Get the Best Interest Rate
Bad credit loans are in high demand. And if you do any research on "bad credit loan", you'll find plenty of advice on how to get the lowest interest rate. You'll also find plenty of people willing to give you a bad credit loan, but you'd be making a mistake to accept it.
Unfortunately, most of what you'll find approaches the problem from the wrong direction. The way to get the VERY best interest rate on a bad credit loan is usually overlooked or concealed altogether.
But before we continue, let's digress briefly and look at how significantly the higher rate for a bad credit loan affects the borrower.
Let's say you want to buy a house, but have bad credit. No matter how diligently you shop for a lender, you're still be charged a higher interest rate for a bad credit loan than if you had good credit.
With good credit, you might get a mortgage loan at 6% interest. But a bad credit loan will cost you closer to 12%.
Assuming you get a $100,000 mortgage over 30 years, the difference you'd pay in interest amounts to a monstrous $154,461.60 MORE because you have bad credit. That's over 1? times the loan itself!
Now getting back to our original problem, how can you get a better interest rate for a bad credit loan? The answer is probably not what you were expecting.
The solution is to "think outside the box." The way to get a bad credit loan with the best interest rate is to NOT get one! Instead, spend a couple of months fixing your bad credit, and then look for a "good credit loan" instead.
This answer probably comes as something of a shock to you. More than likely, several objections to this approach will come to mind.
1. "I need a loan NOW" or "It's not worth my while to wait until I repair my credit."
Oh really? Well, is it worth a savings of $150,000 or more? Granted you may not be looking for a $100,000 loan. But even if you want to borrow only $10,000 or so, the better rates you'll enjoy with good credit will still save you several thousand dollars.
2. "Fixing my credit will take too long, or it just isn't possible."
It's often possible to make very a significant improvement in your credit rating in just a few months, and in some cases as little as 30 days.
3. "I don't know how to repair my credit and can't afford to hire a credit repair agency"
For a fraction of the cost of a professional agency, you can purchase a good book on credit repair that will walk you through the whole process.
4. "Do-it-yourself credit repair is too difficult" or "I don't think I can repair my own credit"
Don't be intimidated by the idea of fixing your own credit. If you can write a few letters, address, stamp, and mail them you can repair your own credit.
Your decision comes down to this; you have two choices.
1. You can spend some time (maybe a LOT of time) shopping for a bad credit loan with the lowest possible rate, and still end up paying thousands (even tens of thousands) more in interest.
2. You can spend some time fixing your credit and spend those thousands on your family's needs, instead of paying them to your lender.
Do you really think your lender needs your hard earned money more than you and your family need it? Anybody can work on fixing their own credit. That's right, anybody!
Get a good book on credit repair and get started TODAY!.
Beware of Bogus Credit Repair Companies!?
So-called "credit repair" companies claim they can remove negative information from credit reports. Advertising as "Credit Advisors," "Credit Rating Correction Services" or "Credit Consultants," they trumpet variations on this message: "Turned down because of bad credit? We can help!" Many of these companies charge hundreds if not thousands of dollars for the promise to "clean up" bad credit reports. But the truth is, these companies can only do what you could do yourself--at no charge. Nobody can remove negative information that is accurate from your credit report. No company has a "secret" ability to remove all negative information.
But this doesn't stop their claims. This deceptive quote is from a credit repair company brochure: "Charged-off accounts, collection accounts, judgments, tax liens, repossessions, and even bankruptcies can be removed from your credit records in less than one year (five to seven month average)."One tactic is to bombard credit reporting agencies with...
Beware of Bogus Credit Repair Companies!?
Credit repair > Beware of Bogus Credit Repair Companies!?
Home Loans ? Repair Your Credit Before You Buy
Before you take out a home loan or make any major purchase, you should be aware that any prospective lender will want to take a look at your credit report. Your credit report is a record of all of your past financial dealings, and any loans, credit cards, judgements, bankruptcies or other major financial transactions are listed there. Along with your credit report will come your credit score, which is a three digit number between 300 and 850 that represents a distillation of all of the above. That score represents your entire financial life, and your ability to obtain financing for any major purchase depends on having a good one. What if you don't have a good record? Should you go to one of those companies that promise to repair your credit? What you should do is repair it yourself.
The idea of credit repair is a myth. There is no magic solution to fixing problem credit, and any company that promises to do so is only interested in your cash. Your credit report and score are maintained...
Home Loans ? Repair Your Credit Before You Buy
Credit repair > Home Loans ? Repair Your Credit Before You Buy