How To Find The Best Lenders When You Have Bad Credit

by Hank Coleman

Can credit cards make you a millionaire?It can still be possible to qualify for a personal loan even if you have a bad credit score and derogatory marks in your credit history. It may take a little more effort to find great lenders if you have poor credit. But it can be worthwhile if you still need funds for an emergency or to consolidate debts into one payment.

It is not the end of the world to have a poor credit score or bad marks in your credit report. You are not alone in this predicament by a long shot. Many people find themselves actively working to improve their credit scores.

Focus On The Future, Not the Past

The best thing that you can do to find the best lender if you have bad credit is to continue to focus on the future. The past is the past. You can’t change what happened. But you can show lenders that you are making strides to improve your credit score.

Paying your bills on time is one of most important aspects of your credit score’s calculation. The best way to increase your credit score is to pay at least your minimum payments on time on their due date. Look to the future and focus on what you can influence now. It will pay off in the long run and how lenders that you are working to be a better credit risk to them.

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Borrow Only What You Need

You should always only borrow the amount of money that you need for what you are looking to pay. Don’t ask for more money from a lender than you need. Don’t build an emergency fund from loans.

Borrowing only what you need to cover an emergency of to pay off existing debts is a great way to find a lender who can work with whatever credit history and derogatory marks you may have in your credit history. To show a lender that you are responsible borrower, only borrow the smallest amount of money that you need.

Shop Around For The Best Deals

Like any financial decision that you make, you should shop around for the best deal. The same is true from lenders. You should get multiple quotes on interest rates. You will be surprised by how each lender may offer you a different interest rate on you loan especially if you have a less than stellar credit score.

It can pay dividends to use a service to help you retrieve multiple quotes for the same loan. There are many companies that specialize it helping consumers with low credit scores find good deals from multiple direct lenders. Some companies such as Positive Lending are offering 80% approval rates on bad credit home loans, for example.

It is not the end of the world to have a bad credit score. There are many lenders who specialize in helping consumers with poor credit. You simply have to look for the best personal lenders to specialize in these types of loans. It may take you a little time to find the perfect fit for you needs, but there are lenders out there who will help you and work with you despite you having a poor credit score.

Have you ever had to find a loan when you had bad credit? What was your experience like?

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About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master’s Degree in Finance and a graduate certificate in personal financial planning. Email him directly at Hank[at]MoneyQandA.com.


Hank Coleman has written 586 articles on Money Q&A. Learn more about Money Q&A on Twitter @MoneyQandA and @HankColeman.


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{ 1 comment… read it below or add one }

The Wallet Doctor

Excellent advice. I think being very careful to borrow only what you need is key. It can be a challenge to get a loan, but if you have a history of difficulty with money matters, its valuable to get it right by only taking what you absolutely need.

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