2006-08-28 08:12:05 · 9 answers · asked by mycake1989 1 in Business & Finance ➔ Credit
I am no financial expert, but I pay attention when people talk about this sort of thing and what you need most of is probably what you have least of.....time. If you have bad credit, you need to re-build it over time. Finding anyone that would give you a loan with bad credit is most likely going to get you into worse trouble with your credit (high percentage rate loans that are hard to payoff). They have these credit cards where you can pre-pay the credit card company like $300, use the card to make purchases (not exceeding the $300) and eventually graduate into an actual credit card, which (if used properly by making cc purchases and paying the balance right away) this will help by showing favorable cash flow on your credit report. You may know this stuff already, but I am also going tell you that the very worst thing that you can do is apply for a bunch of credit cards and loans. All of these companies call credit agencies to make inquiries about your credit and alot of inquiries affects your credit rating negatively. Do you own a car? If not and you can afford to make a small car payment, try to find a co-signer on a very inexpensive vehicle and that will help build your credit rating back up. Also, there are government offices / agencies that help repair credit. Google your home state's government office for this kind of help. Hope this stuff helps. Joe
2006-08-28 08:29:51 · answer #1 · answered by Joey 4 · 0⤊ 0⤋
If you have really bad credit, then you would have trouble getting a loan with really bad terms. If the problem is debts, then a loan likely will not solve it.
You may wish to meet with a financial or credit counselor to see what can be done to help you out of your situation. Many times, you may have more options than you think. I recommend finding an agency that charges no fee for a consultation. You will also want to make sure they have a satisfactory rating with the Better Business Bureau. Here is a directory of agencies in all states.
2006-08-28 08:39:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Keep in mind that if you pay off negative credit, your removal date starts all over again.
For example, say you have a credit card and owe $1,200 and your last activity date (last payment made by you) was 12/1/2003 and then you decide to pay it off on 9/1/2006 thinking that it will improve your credit. It shows a paid collection and now it will not be removed until 9/1/2013. It still gives you negative credit.
The only way it does not is if you get the creditor to sign a statement saying that they will delete this from all 3 credit bureaus, if you pay in full. You also have to be careful of the wording you use, and there are even ways to get it deleted without paying.
You should contact a credit attorney who specializes in disputing negative credit. It may be costly, but it is worth it.
Also, you will not get a loan, unless you have a co-signer with very good credit willing to take that risk, or you have a house and are willing to put it up for collateral. I would not suggest either one.
Contact someone who can assist you. Do a search on credit repair.
Go for someone who is listed with BBB online.
2006-08-28 08:41:14 · answer #3 · answered by Christian93 5 · 0⤊ 0⤋
You might want to take a good look at your budget. See if you can find a better way to manage your money. It usually isn't a good idea to "borrow more to get out of debt". Especially if you do nothing to change the bad habits that got you into trouble in the first place...using credit cards, maybe not paying on time....
You could pay off the credit cards, have a loan to pay, and then end up using the cards again...NOW you have the credit card debt AND a loan to pay!!
Good luck.
2006-08-28 08:20:49 · answer #4 · answered by tweetymay 6 · 0⤊ 0⤋
Taking out a loan may not be what you need because first of all you won't get a desireable interest rate if you do get approved in the first place, the best approach for someone in you situation is to contact your creditors and make payment arrangements some kind of plan and schedule and also ask them if they can lower your interest for you. Then pay everything off aggressively, use the same money you would have been paying the loan with to pay down all your debts and then if you can come up with any extra money, use that too.
2006-08-28 08:20:36 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You can still have a loan, but you will pay with a hight rates and interests. It will take 7 yrs to clear or you after you pay a loan off, you can start hving your credit build.
2006-08-28 08:28:10 · answer #6 · answered by kathy T 2 · 0⤊ 0⤋
Forget a conventional loan. If you have really bad credit, you should get a consolidation loan.
2006-08-28 08:17:31 · answer #7 · answered by Scott D 5 · 0⤊ 0⤋
read tips on debt/credit and money matters on this site
2006-08-28 08:37:08 · answer #8 · answered by Anonymous · 0⤊ 2⤋
consolidate debts and pay off debts:
Ways to Consolidate Debt
http://www.debt-explained.com/category/Ways-to-Consolidate-Debt.html
2006-08-29 00:18:17 · answer #9 · answered by Anonymous · 0⤊ 1⤋
You need a plan...try a consumer credit counseling program..let me find it.
http://www.credit-counselors.cc/?source=overture&OVRAW=consumer%20credit%20counseling%20service&OVKEY=consumer%20credit%20counseling%20service&OVMTC=standard
This is a good one , but there are hundreds.
2006-08-28 08:20:16 · answer #10 · answered by rrrevils 6 · 0⤊ 1⤋