Over time, people have found themselves at the mercy of a bad credit rating, particularly during times of economic uncertainty when the joblessness rate is high and wreaks havoc on many lives across the country.
However, when there are positive changes in the wind and things are begin to look up for most of the population, this a good time to try for a poor credit loan.
These can be hard to obtain, and depending upon what you intend to use your loan for, they can come with extremely steep interest rates.
But if this is what you need in order to calm your finances and set things straight, here are a few tips that may help you along the way.
First, it is important to get a hold of your personal credit report as reported by the three major bureaus.
You can order your free report or pay a $50 fee to have it sent to you via email, fax, or mail.
Once you have this in your possession, you can see what the banks see when you apply for credit, and you will most likely notice that it is not pretty if you are looking for a poor credit loan.
If you have the time to do a bit of work before you proceed with the application process, you should spend some time and money on fixing a few of the most recent problems listed on this report.
There are loan calculators that you can use for free online, and these will give you a very sound idea of the interest rate you might be offered.
The rate will be calculated using your current credit score and your estimated payment amount based on the amount that you intend to borrow.
The assumed interest rate you will earn, and the number of months in which you will be expected to repay the loan.
Now, you will have a better idea of whether or not you can handle the terms and stresses of another bill, especially if you are not able to consolidate your other bills will the new loan.
The poor credit loan can be offered for a mortgage, a refinance, a home equity situation, a credit card, an auto loan, or just about any other type of business that you need to tend to.
Your interest rate and terms will vary greatly based upon what type of loan you are actually going for, so be sure to specify when you contact the lender of your choice.
The poor credit loan will not be offered, in most cases, if there has been a bankruptcy filed by you within two years of the application.
There are auto and credit card loans that may be available to you before this two period is over, and you should use those to re-establish your credit and payment history, but unsecured or home related loans will usually be denied before the two year mark.
Be sure to save your social security number for just the one or two lenders that you decide to work with as well.