Got bad credit? Got a financial need and having a tough time finding a loan? You’re in a more common situation than you might think. Hundreds of thousands of people across the U.S. are in situations with a bad credit score and they need a financial bailout, or infusion of cash.
In addition, many people want to have a credit card for emergency purposes but find themselves in a bad credit situation and are being denied credit cards everywhere they apply.
Living with bad credit is a difficult burden, and it weighs far more than just the financial cost. While many people make bad financial decisions, so many more find themselves in situations they believed were going to turn out well. See if any of the following real stories (only the names have been changed) sound like your situation:
- Sally is a great chef. To be more specific, she’s a great baker; specializing in pastries and homemade breads that are probably the best you’ve ever tasted. So many people have encouraged her to open her own bakery that one day she decides to invest in herself and take out a small business loan. She’s not worried about paying it back, because she believes in her abilities, and believes the bakery will thrive. But while her product is excellent, poor Sally chose a bad location just down the street from a larger, more successful bakery and she goes out of business within a year.
- Greg wants to go to college. His grades aren’t good enough for a full scholarship, but they are good enough to let him into a well-known university. Believing in himself, he takes out student loans to cover the cost, but after he graduates, there are no jobs waiting for him in his field, and very few jobs available at all. He works at a convenience store full time, but the pay barely covers the bills and rent. After six months without a payment, he’s defaulted on his loans, still unable to find a good paying job.
We could go on, but you get the general idea. Put any kind of variable in either of the stories above and you might come up with a familiar story. Many times people with bad credit are victims of circumstance and get to the point where they are unable to get out of debt or will sometimes resign themselves to a life of financial need.
Finding Loan Companies for Bad Credit
But if you have bad credit – even if you’ve made poor or reckless choices in the past – this does not mean there are no outlets for obtaining a credit card or a loan when a need arises. Just bear in mind that when you do apply for such things, you’ll be faced with lower borrowing limits and higher interest rates. This is not a personal judgment against you; it’s how the lending industry works. While many people of good conscience have been the victim of being dealt a bad hand in life, many more have abused the system and committed fraud to such an extent that bad credit borrowers are considered risky to lend money to. And that’s simply part of the way it works when it comes to large lending institutions.
How great would it be if a lender could just read your personality and be able to understand you have every intention of paying back the loan? How knows? Maybe technology will be developed in the future that can do just that. But in the meantime, lenders have to protect themselves and their businesses. That’s just the way of the world, but it does not mean you cannot get a credit card or a loan just because you have bad credit.
This, in fact, is the very purpose of the smaller and more local lending institutions. While there are those who have the opinion that such places are “predatory” ask anyone who has taken out a title loan or short term installment loan and they will likely tell you they could not find the much needed money anywhere else. We all need a financial boost from time to time and for all the reasons you can possibly think of. But those of us with bad credit are limited in our options. If those options weren’t there, imagine what kind of situation you might find yourself in.
It is important to know your credit score, and make sure it is accurate. Those who commit credit card fraud and identity theft often target people with bad credit because they don’t monitor their reports. These types of criminals are called ‘drifters’, and will go for multiple smaller amounts rather than try to steal the identity of a wealthy individual.
How to Find the Best Finance and Loan Companies
Need a payday loan in Las Vegas or a personal loan in AZ? Make sure you shop around for the best rate. It should never cost you any money just to apply for a loan and you do not have to accept any loan just because your application was approved. If you’re reading this, it means you have an internet connection and can look around for the best bargain possible. Call some of these lenders and fill out an application over the phone or online. When you do your search, enter the name of your town and then terms like ‘title loan’ or ‘personal loan’ to see what’s available near you and what their terms are.
Credit cards on the other hand generally aren’t offered by local institutions (except for Credit Unions). The top three institutions who offer credit cards to those with bad credit are Premier Bank, Total (which offers Visa cards; enter ‘Total Visa’ into your search bar), and Fingerhut (no idea why they’re called that. All three of these institutions specialize in credit cards for people with bad credit, and the best part is they all report to the credit organizations monthly, which will help you rebuild your credit score. Bear in mind that once your score is on its way to being great again, you will want to negotiate for a lower interest rate or get a card from one of the more popular credit brands for a higher limit.