Fixing Credit: Five Ways to Get a New Loan Even With Bad Credit!

A bad credit score is a major obstacle in obtaining a loan. You may have been experiencing financial problems, and resultantly, made late payments. Ultimately, you’re stuck with a poor credit score. But now you need a loan. Is it impossible to get a loan with bad credit?

The answer is no. First, your credit score might not be as bad as you think. Second, some lenders may still be willing to lend to you. Third, there are other options as well.

Here are five alternatives to traditional loans:

1.    Home equity credit

If you own a home and have equity in your property, you can get a loan. Not just that, you can get a low-interest, tax deductible loan which you can spend any way you want.

But keep in mind that choosing this option puts your house in jeopardy. Do you have a stable job or business? If yes, then you can pay off the loan in time. Be careful with your money and be extra savvy.

2.    Go for the credit unions

A credit union is owned by its members. They all have something in common. They might work in the same industry or live in the same area. These credit unions provide good service with lower charges.

Try to find a credit union near you. Call them up or meet with them in person. Discuss the possibility of getting a personal loan. Don’t decide until you’ve compared the rates of at least a few unions. Go with the one which offers lowest rates and good services.

3.    Peer-to-peer loan

P2P lending is an online option to borrow directly from a lender instead of an institution. Borrowers can get an interest rate as low as 6.5%, while lenders can gain as much as 10.5%.

The method is simple. Borrowers post a list of the amount they want and reasons for it. Lenders choose appropriate borrowers and check their credit. If your reason is strong enough, then your credit score won’t matter much.

4.    Family and friends

If nothing else works, you can ask your family or friends to help you. Don’t treat this loan any different from the one you would have gotten from a bank. In fact, have an agreement prepared which includes details for loan amount and payments.

5.    Ask for a co-signor

If your family and friends can’t lend you a loan, you might still ask them to become a co-signor. Choose a person with a good credit score who trusts you to pay the loan.

If a loved one or friend agrees to become a co-signor, be responsible for the payments. Any late payments will appear on both your credit reports. If you are unable to pay the loan, the creditor will ask your co-signor for funds.

One of the easy credit repair trick is to keep an eye on your credit reports. We have a number of resources and credit repair tips on our blog. Begin fixing your bad credit now!  

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How To Improve My FICO Scores: A Quick Guide To Fast Credit Repair

When it comes to fast credit report repair, there is no quick-fix. Nothing worthwhile will happen in a matter of hours.

The best suggestion for DIY credit repair is to manage it carefully and pay at regularly intervals before due date. If you are not known for doing that, then credit score improvement will be very difficult.

Working on a better credit score will help you get a favorable mortgage faster. It will also qualify for better auto insurance premiums and make you a more attractive potential employee!

Let’s get started:

FICO Score: What’s included?

This one takes account of all your financial and related information to come up with a truly detailed credit report. FICO scores are a snapshot of all your credit data when the report is pulled. The FICO Score is made up of:

• Your Payment History : 35%
• What You Owe : 30%
• Span of Your Credit History : 15%
• Your New/Recent Lines of Credit : 10%
• Credit in Use : 10%

But in order to truly figure out what’s impacting your good or bad credit, you will have to get the credit report and review it thoroughly. You can individually contact the main credit reporting agencies to get your reports. But more conveniently, you can employ these credit monitoring services that will not only give you quick access to your credit reports from Equifax, TransUnion, and Experian but also inform you of your overall credit score.

3-Steps to Improving Your FICO Score

It is important to review your credit report to find any errors. This is imperative, so as to ensure the highest FICO score possible.

Once you are satisfied that the report is error-free, it’s time to follow these guidelines to fix credit fast. Mind you, these credit repair tricks will require patience and discipline.

1. Verify Your Credit Report – As stated earlier, your credit report has all the information required to determine your score. The trouble is that it may contain errors that are damaging your credit score and thus your reputation with lenders. Make sure that it lists all the payments and credit cards etc., correctly. Dispute any discrepancies with the credit report agency and your lenders.
2. Set Up Reminders For Timely Payments – Paying off your credit card installments, mortgage payments, car loan installments, etc on time is very important for a healthy credit history. Set reminders in your smartphone and make payments responsibly.
3. Reduce Your Debt Reliably – Take all your debts, and make a smart payment plan that addresses all your outstanding balances on all the different credit cards. Pay off the ones with the highest interest rates first, but continue to make minimum payments on all accounts. Make sure that you can accommodate this in your budget.

Repairing bad credit takes time and endurance. But it’s doable! Here’s the information you need to start contesting credit report errors. Quick Credit Report offers definitive resources for fixing bad credit while building good credit concurrently.

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Understanding FICO Credit Score to Repair Bad Credit Fast

Banks are interested in your numbers, the credit score in particular when you want to borrow money. FICO credit scores determine almost everything from the interest rate on your mortgage loan to simply decide whether to approve you for a credit card.

The median FICO credit score range is between 300 and 850. Any number close to or lower than 300 is considered bad, and a score of 850 or higher may even lead a stranger to lend you money!

The credit scores were created by Fair Isaac Corporation (FICO) to evaluate consumer credit reports that are maintained by the credit reporting firms. The FICO credit scores are used by 90% of the people when it comes to lending money.

Needless to say, FICO score is important. But what determines the FICO reports is based on the following information:

·        35% of the information is solely dependent upon the payment history.

·        30% depends upon your debt utilization ratio.

·        15% is on the age of your account.

·        10% on the type of credit.

·        10% depends on new or recent credit.

It is essential to understand your FICO credit score in order to repair bad credit fast. Below are lists of tips that can help with quick credit repair!

1.    Check for errors

A recent study has found that 80% of all credit reports have some kind of errors or mistakes. In some cases, one in four have serious problems that greatly affect the credit score. For this reason, it is recommended to check your reports as soon as possible.

2.    Improve with DIY techniques

Why pay to monitor your credit when you can do it for free? It will appear on your reports allowing you to see any mistakes or errors. Additionally, you can quickly report these errors and mistakes and repair bad credit fast.

3.    You can negotiate late payments

Yes, you heard us right! If your due payments are not more than 150 days late, you can often negotiate with the original lender. You can argue to waive off any late fee or ask your creditor to accept a lower amount. It is not necessary that negotiation might always work, but give it a try!

QuickCreditRepair strives to help with DIY credit repairs and give you a platform to directly report any errors on your report to one of the major credit bureaus.