How can I get a loan if my credit is poor?

Question

Who can help us out in getting a loan to expand a business, our credit is poor and the banks will not help us out? Is there any one outhere that knows someone that can help?

Answer 1

Why don't you fix your credit first.
I don't mean to be critical but I remembered when I had bad credit, and I was trying to get loans and credit which I was unable to do.

The best thing is to work with credit bureaus in fixing your credit, or with time, your bad credit tend to diminish as you keep up with payments.. After that, then you can get a loan.

If you get a loan now, you have a great chance of putting yourself in a deeper hole and by that worsening your credit for life.

Answer 2

There are ways to accomplish this, they aren't cheap and they're not overnight but they will get you back on the road to good credit.

#1) Get your current credit report from any of the major reporting bureaus (Equifax, etc.) and make sure that everything on there is correct. Not all lenders are quick to report paid balances and/or closed accounts to the reporting bureau so take some time to review it and make sure it's accurate. If you have closed accounts showing up as still open get them to fix it (the lender not the credit bureau).

#2) There are a number of companies that will offer a "secured credit card" that you can get. The catch is that you have to deposit an amount into an escrow account that the lender holds as collateral. So in essence you send them $500 and they give you a credit card for $450 (usually an amount less to cover processing fees). You then use this card as you normally would and be sure to pay ON-TIME. Over time this activity will show favorably and help restore your credit.

#3) There are many sub-prime lenders that will give you a credit card with a small limit (usually under $500) at a very high rate (usually >24%) and a one-time activation fee (usually $100 - OUCH). This is an expensive proposition, but with diligence and a good payment history you can restore you score.

There's no easy way here. There are a lot of people that promise great results (usually internet sites that want you to send them $24.95 for their credit repair package that is big on promises and short on results).

Your credit score is factored by both your payment history (how often you're late) and by how much debt you currently have. If you pay pretty regularly but have a lot of outstanding debt it's going to count against you so be sure to minimize your debts as much as possible.

Don't wait to take action, every thing you do now will add up and the sooner you start the better.

Good luck!

Answer 3

You may have to improve you credit score first, but in the mean time you can have fundraisers to get money or go to your local library to find government grant money that will help you that way you don't have to worry about paying the money back...