Where can I get a loan when I don't have good credit?

Question

I don't own my own home but would like to buy one in the near future. I am looking for a low interest loan to pay off all my debits and put what ever is left over into some investments for the future. I am a hard working single woman over the age of 50 and am not looking for a hand out, just some help.

Answer 1

Several issues here.

* You can't borrow yourself out of debit.
* In many cases it is illegal (and always very risky) to borrow money to invest.
* Bad credit, usually (but not always), indicates you don't repay your debits. As such, lenders want a high interest rate to cover the risk.

Consider this idea:
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Answer 2

If your credit is not good, you cannot get a low interest loan. The information you provide is limited. What are your current debts? What are the interest rates? Are they credit card debts?

Your best approach is to stop charging on credit cards and pay off the debt with the highest interest rate, while you maintain payments on the remaining loans. If you have high interest credit cards with a balance, you may try asking the card company to lower the rate or apply for a card with a lower rate elsewhere and transfer the high interest balance to it. However, any credit card debt is the worst kind of loan you can have, so you should not use credit cards if you cannot pay off the entire balance each month.

The trick is to live within your means after "paying yourself" a portion of your paycheck every month. That means put 5-10 percent of your pay into a savings account, or if you have credit card debts, into repayment of those debts.

There is nothing like paying off existing debts to establish good credit. That should be your goal. then as you save some money, you will be able to buy a house. A home mortgage can be good debt you have.

Answer 3

You need to have your spending under control before you take on debt because what you'll be doing is opening up a new line of credit which will free your old ones up and if you haven't fixed your debt problem you'll just end up maxing those out again (but with another loan).

A low interest loan won't be easy to come by though something with a lower interest rate than the debts you have now might be possible, if you can show that you're making progress on paying off your debts then you should be able to get something from a bank or credit union with a lower interest rate than some of your debts.

Answer 4

I would start with understanding what credit is. Enroll in a credit counseling course.

Understand why you don't have good credit to begin with. This is the first step in the right direction.