"No man's credit is as good as his money," said John Dewey. Today, it seems like banks only care about your credit history and not how much money you have in your bank account. If you want to get a personal loan, you need to have a good credit history.
But you can't just forget you have that personal loan once you have it. If you do that, credit collection agencies will call you and be rude, but that won't be the worst of it. Credit agencies will now know that you owe money that you can't pay back. From every bank, finance company, store merchant, and credit card company, credit bureaus get all of the information about a consumer, good or bad. Don't think that your loan won't be noticed, because it won't. Once it has been reported to the credit bureau, it goes into your file. Now, when you want to apply for a loan or credit line, the financial institution will look at your file to see if you have a good payment history and what kind of credit risk you are.
But just because you now have bad credit doesn't mean that your life is over. There are many examples of people who have fixed their bad credit history by being smart with their money and being patient. But what if you need to borrow money for a new car before you can do this? The answer is no, because the banks look at your credit report. Your credit score and your chances of getting a personal loan from a bank are both gone because of that one mistake.
It will take at least SEVEN years for any bad things on your credit report to be taken off. Once you've waited long enough and your credit history is clean, you'll need to build it up for at least a year before you can get that personal loan.
Aren't we stuck between a rock and a hard place? There's a different way. Seven years is a long time to not have a car, and your job and way of life may not let you be out of work for a short time. You need to find a different way to do it, and there is one. A bad credit personal loan is what it is called. Even if you have bad credit, some companies will still give you a loan. You can get credit as long as you have a good job, but you'll have to pay a higher interest rate.
The idea behind a personal loan for people with bad credit is that the lender won't care about your past as long as your current situation is good. If you already have a job, getting a personal loan with bad credit shouldn't be hard.
One of the best things about a bad credit personal loan, besides the fact that you can now get that car you need, is that, as long as you make your payments on time, it will help you build a good credit history. If you can get your credit score back to where it should be, you can get normal loans with normal interest rates. This will happen in the long run if you pay back the bad credit personal loan on time.
It doesn't have to be the end of the world if you have bad credit. You'd be surprised by how many people have had bad credit reports and managed to fix them. Do something positive, like getting a bad credit personal loan, to get yourself back on track instead of getting down about it.
