Having bad credit score is unfortunate. However, we need to accept the fact and we have to move forward. Life is full of uncertainties. There may be a lot of hardships we need to overcome from time to time. Although it is not the right time to obtain loan when our credit score is low, we still need to apply for it due to certain unforeseen circumstances.
Since we really need cash urgently, we have to make sure that we can obtain guaranteed approval from the lenders.
How can we ensure that our application can be approved successfully? Here are 3 important tips you should apply during the application process:
Tip No. 1: Find out your targeted lenders
Since your credit history is poor, you should be fully aware that there is no chance for you to obtain loan from traditional banks. You need to look for other money lenders. It is important for you to find your targeted lenders correctly. If you are a member of credit union, you are advised to apply loan from your credit union as the interest charged is lesser.
Most of the credit unions are willing to offer financial assistance to their members even though their credit scores are bad. If you are not a member of credit union, don’t worry, there are many non-bank lenders who offer quick loan to the public. You can either search online or refer to the advertisements to get the details related to the loan providers.
Tip No. 2: Determine your loan amount based on your real financial situation
In order to obtain loan successfully, you must make sure that your loan amount is small. You have to figure out your real financial needs carefully before you apply for loan. Since you have poor credit rating, it is more practical for you not to ask for big amount. The lenders will reject your application if they don’t have confidence that you are able to pay back the loan. Let’s say your current salary is $5000, your application can be approved easily if you are asking for $2000.
On the other hand, if you are asking for $20000 loan, your application may be rejected because from the lenders’ point of view, you don’t have the financial ability to repay your loan. Hence, you are reminded to determine the loan amount by taking your monthly earning into serious consideration.
Tip No. 3: Submit your application together with “strong proof”
For people with excellent credit rating, it is for sure that they can obtain financial assistance easily by proving their credit files to the lenders. How about people with very low credit score? You are advised to look for “no-credit-check” loan.
Without showing your credit file, what can be used to serve as proof? I would say the strongest proof you have is your monthly pay slip. The slip shows that you are currently employed and you have fixed income every month. In other words, it shows that you have the ability to repay your loan.
To sum up, you are advised to apply the tips mentioned above accordingly if you want to you want to obtain loan without any obstacle.