Ara Betty is a freelance financial writer and speaker about personal financing. She helps people realize their goals on becoming debt free with the use of debt consolidation. She hopes to expand her knowledge more about loans and debt to be able to write a book.
The Best Loans for You
If you are planning to take out a loan, you better make sure that you get the best loan possible. All loans are not made the same, and even the same kind of loan might be different because of the lender.
You can actually get more out of your loan or find the best loan possible for you. It doesn’t matter if you have bad credit all the time too, you just have to know the right tips to help you get more than what you originally were offered.
To help you get started, here is a list of some of the best loans online and helpful tips that you ought to follow.
Start With Your Credit Score
One of the biggest factors when it comes to getting the best loans is your credit score. Many lenders will ask you for what your credit score is or do a credit check on you.
This is gonna be a big part of getting a good loan, because lenders base their approval on what your score is.
People with bad credit tend to get denied for loans quite often and if they get approval they could be facing a costly loan repayment plan because of the high interest rates.
You can assess your credit score to see what kinds of loans are available for you. If you have a poor score, don’t push the loans that are out of your reach or it would be more costly because of your score.
There are other options that you can get because there are many best loans for bad credit scores out there. However, if you have some time to spare, you can try raising your credit score to get more options.
Here are some tips to help you raise your score.
1. Fix Your Spending Habits
If you have a habit of treating yourself, you might want to stop that for awhile. We are not saying that you should not have that ice cream every now and then or not get a new pair or shoes when you need one because the rest of them are tattered, but you have to realize what is a small treat for yourself and what is an unnecessary expense.
Those unnecessary expenses can cause you to create debt, which is a huge reason why you could have a bad credit score.
The trick is to start disciplining yourself without restricting yourself at the same time. Instead of treating yourself to an all out shopping spree when you accomplished something (because that can cause a lot of balances on your credit card that you might not be able to pay off), do more affordable options instead.
Treat yourself to a coffee at your favorite coffee shop, get a ticket to a movie that you want to see, or get yourself a reasonably priced new item of clothing.
You do not have to go all out to feel good, a small treat will help you feel rewarded and appreciate the smaller things in life.
Now that we have talked about how you can avoid creating debt, now we have to talk about eradicating it. As we have already mentioned, debt is a huge factor in a credit score. You will want to get rid of as much of it as possible if you want your credit score to raise or at least keep it from getting any lower.
Additionally, debt is a burden regardless if you want to get a better credit score or not, so it would be best to get those things out of the way. Don’t forget to empty those credit card balances too, some people say that you should aim for 30% and lower, but we urge you to keep the number within a single digit as much as possible.
Another thing that you have to take into account is the payment history, which is another critical part of what affects your score. Payment history refers to how often you pay for things on time, or in some cases how often you pay for things late.
It also counts in times that you have paid for things in the full amount or not and if you have skipped payments. The last thing a lender wants to see is a poor payment history, because it does not give them assurance about your ability to pay them back.
To avoid any more things from affecting your credit, you ought to start making sure you get those bills paid for on time. A good tip to follow is when you get your salary at the start of the month, put money aside right away for your bills.
Afterwards, set reminders on your phone and calendar on when you should pay for your bills. This will keep you from missing any bills to avoid lowering your credit score. Additionally, it is a good idea to pay them on time so you can avoid paying for penalties such as late fees.
3. A Credit Repair Company
Another popular option that many people get to repair their credit is to get help from a credit repair company. What they do is they take your credit reports from credit agencies to analyze them and look out for any errors. Once they find what they are looking for, they will make and file a formal dispute at their credit bureau.
They will fight to get those errors removed from your credit reports to make sure your credit report is as accurate as possible. Normally, this process only takes about a month or less, and the longest is can take is 45 days.
However, you have to remember that a credit repair agency does not magically raise your credit score overnight. In fact, you might not see any changes until a few months has passed and even then it won’t be anything very significant.
However, you do not want lenders to see false information in your credit report, which is why credit repair services are a good option for you to take. Keep in mind to look out for potential scams by doing research on the company before you get their services.
Proof of Your Abilities to Repay a Loan
If you want to get the best loans for bad credit, then you might want to gather some information on your capability to pay off a loan first. Even if a lender specializes in loans for people with bad credit scores, that does not mean that they will give it without taking a look at you first.
If you want to impress the lender and give them more reassurance, then you can get some evidence to show them that you are capable of paying off a loan.
If you want to build a good payment history to get a better credit score, then this tip will be helpful for you. You can present lenders with an unsecured credit card’s payment history to show them a good recent payment history. Almost anyone can easily get an unsecured credit card from most banks and a savings account will be linked to it as collateral.
You should use this credit card for a while and make sure that you pay for it on time or leave a certain amount of money in the savings account that it is linked to. This will help you build a good enough payment history to show that you have been changing your ways and are now financially responsible.
Additionally, you can find other ways to show them proof about how reliable you are when it comes to paying for things on time. If you rent a home or an apartment, you can ask your landlord to write a statement for you about your timely monthly payments.
You can show this statement to the lender if they are unsure about giving you a loan. This won’t guarantee you approval, but it sure can’t hurt to try to show them that you are a reliable borrower.
What Are the Best Loans and Where Can I Find Them?
There are tons of great loans out there, however even if a loan seems like a really good option, that does not mean that it is the right one for you and your situation. You have to take into account your credit score, how much you actually need to borrow, how long it will take you to repay the lender, and other factors to decide what type of loan is the best for you.
A popular type of no credit check loans that people get are payday loans. These loans can offer anywhere from $350 to $1000 dollars depending on the lender and your credibility.
The main reason why these types of loans are popular is because they are very convenient and have a super quick process. Once you apply for a personal payday loan from a trusted lender or third party, you usually get notified extremely quickly about your approval because some people get approved in as fast as a few minutes.
Afterwards, you can expect to get the cash transferred in your bank account in the same business day. Once it has been deposited into your bank account, you can withdraw it in a matter of hours and use it wherever you need to.
Keep in mind that payday loans have to be paid back in a short amount of time, because majority of them are short term loans. Some lenders will want to be paid back for the loan in as quick as a month after you received it, so make sure you can pay them back.
Payday loans are usually a good option for people with bad credit
Many lenders might ask for some form of collateral from their borrowers or may not even do a credit check on you. However, what you have to keep a lookout for are high interest rates and the span of time you have until it needs to be paid back.
You don’t want to be in any potential debt, so be sure to calculate your future income and see if you can pay off the loan before you take one out.
If you are still curious about what other types of best loans are out there or want to find out more about payday loans, you can continue reading on our website. You can even get your loan started by using the contact information that is provided on the website to send your inquiries.