Personal Loans For People With Bad Credit
Have you been declined for a loan because you have bad credit? Still in need of extra cash? Well MoneyBuddy is here to tell you that it's not all over yet. There are many ways in which you can still get a personal loan with a bad credit rating.
If you haven't yet got to the stage where you have defaults on your credit file, but you are worried about overdue payments or you know you have been late with your payments over a long period, you still have a chance to save your credit rating.
Lenders are only allowed to put defaults onto your file if you are over 60 days late with payments. If you're getting close to that limit, do whatever you can to try and pay off that debt, if you can't find enough money to do so, call up the lender and explain your situation, you will be surprised at how flexible most lenders can be.
If it's too late to stop a default, and you already have bad marks against your name, then there are still options available to get a personal loan with a bad credit rating.
Clean your credit history
There are companies that clean credit reports for those with bad credit history for a fee of a few hundred dollars or so. However they cannot remove defaults 100% of the time.
Apply and explain
You can still try to apply for a loan with the usual mainstream lenders, however try and get a meeting with the manager or whoever is in charge of approving loans and explain your situation to them. You will still probably have to give something extra to be approved, such as higher security or have to pay a higher interest rate, but at least this way you may get the loan you need.
Apply with specialty lenders
If the usual lenders still don't allow you to get a personal loan with your bad credit history, then you can then try applying for a personal loan from a specialty lender. There are lenders out there that specialise in giving loans to people with bad credit, these places will charge more for the loan though, either through higher fees, a higher interest rate, or even both. This may sound unappealing, but it also may be your last option. At least until the defaults are wiped from your credit history.
How long do marks stay on my file?
Depending on the type of default you could be stuck with the mark on your report for up to 7 years.
- Court Writs and Summons stay on your file for 4 years.
- Payment Defaults, Court Judgments & Credit Enquiries stay for 5 years.
- Bankruptcy and Part 9 Debt/10 Agreements and Clearouts stay for 7 years.