Looking for personal loans for bad credit? If your FICO score isn’t as high as you would like it to be, you may be wondering how to qualify for bad credit personal loans. While some lenders claim that nobody is denied, that is not always true. Qualify for personal loans for bad credit by choosing the right lender, having proof that you are stable and gainfully employed, and being able to explain any negative items on your credit report.
Choose the right lender when applying for personal loans for bad credit
Not all lenders offer loans to individuals with bad credit. So how do you find out which lenders are willing to give you a chance? Ask around. Do you have friends or fa mily members with bad credit? Find out who they applied for personal loans with. This is also a great way to avoid scams, as some companies prey on applicants with bad credit. Are you a member of a bank or credit union? Your financial institution is a great place to get a bad credit personal loan. If you have been with them awhile, they can verify your deposit history and avera ge balance. If you frequently write bad checks or overdraft your account, this might not be an option for you.
Prove that you are stable and gainfully employed when applying for personal loans for bad credit
Nobody wants to lend money to a person who is unstable, even though those are often the people who need money the most. Think about it: would you rather loan money to your friend who lives in his mom’s basement and gets fired from every job he gets, or your friend with a small apartment who has spent the last few years working at a fast food restaurant? Show that you are stable by bringing a copy of your lease, rental agreement, or mortgage documents. Prove that you don’t job hop by bringing check stubs from the last 60 days. If you have a history of job hopping, be prepared to explain why.
Explain negative items on your credit report when applying for personal loans for bad credit
When a potential lender views your credit report, he or she already knows that you have bad credit. What they don’t know is why. Explain any blemishes on your credit report, and let the lender know what your plan of action is to combat them. A little honesty goes a long way when applying for loans, especially if you have bad credit.