How to get a loan with bad credit history
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » How to get a loan with bad credit history

How to get a loan with bad credit history

Updated: December 26, 2012

Add to Favorites:
Nowadays, loans of many varieties are available worldwide. Banks and financial establishments earn a major share of their revenue through the disbursement of loans, and the collection of interest resulting from them. If you need a loan approved from any financial establishment, you have to pass through a strict scrutiny and approval procedure, which they conduct to ensure that the applicant is financially a safe investment. While people with sound credit record have no problem obtaining approval through such a process, if you have a bad credit history, there are chances that most banks and financial establishments will reject your application. It is difficult to get a loan with bad credit history. Financial institutions are usually wary of people with a bad credit record, as they may turn out to be liabilities once the loan repayment procedures start. It is advisable to employ measures which enable you to keep your credit record clean. But if you have had financial fallouts which impacted in your credit, there are ways in which to secure a loan if you really need one. You might face steep terms with respect to interest rates and repayment schedules, but it is possible to reach a solution and get a loan approved. How Bad Is Your Credit History The main criteria in determining the course of action is to see exactly how bad your credit history is. Often, people who take care about their credit records also end up with a bad credit history, due to occurrences such as a divorce or small redundancies, which have major financial implications in the long run. If this is the case, then it might yet be possible to obtain a loan through usual channels, if all the other factors work in your favor. However, if you have defaulted on loan payments or delayed them in the past, then the situation becomes much bleaker. The last resort would be to approach lenders specializing in giving out loans to people with bad credit history. Repair the Damage It is always recommended that you clean up your credit history before applying for a loan. This saves a lot of time and trouble, since you do not have to resort to extreme measures to get the money, and in the long run it helps to improve your credit score. If necessary, you can even wait a while before making a loan application. Meanwhile, make sure your existing payments are paid in full and on time, and reduce your credit cap if you are a credit card holder. Bad Credit History Loans As a last resort, you can approach financial establishments that specialize in disbursing loans to people with bad credit history. This option should be explored with caution, because these loans come with very high interest rates and strict repayment schedules. You should only go in for this option if you are confident that you can meet the required schedule and make your repayments on time. If you are, then take the plunge and it might even put you in good stead with your credit record in the future.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading