Loan Process for Those With Poor Credit Ratings, Part 1

Recently in this space, we went over some of the top loan options available for those with limited or poor credit scores or credit histories. While finding loan funds can be a bit more difficult for those in this position, there are still several loan types available to meet your needs.

At 1st Choice Money Center, we offer numerous such loan types as alternatives to payday loans, such as car title loans, personal loans and several others. In addition to identifying the proper loan program to meet your needs if you’re in a poor credit situation, there are several additional steps you should be taking during this process. This two-part blog series will go over several of the steps and themes you should consider for procuring a loan despite bad credit.

: loan process poor credit

Collect and Review Personal Information

For starters, you should take the time to gather and review all your personal information as it pertains to a potential loan. This begins with your actual need for the loan to begin with – evaluate your finances comprehensively to determine that you need a loan, plus the general amount you require.

From here, take a close look at your credit score in particular. Credit scores run up to 850, but you don’t need a score anywhere near this maximum to obtain many personal loan types. If your score is under 580, though, you may be limited to certain specific loan types in many cases.

Credit Score Improvement

If you check your score and discover it’s below this range or another you require for a given loan application, take some time to try and improve your score before applying. Methods here include paying down old loans, disputing errors that might be present and limiting new credit inquiries or major spending. If you’re able to raise your credit score by just a bit, you may see your range of loan options increase significantly.

Terms and Factors

As you move toward the loan options available to you, take the time to go over the specific terms and factors involved in the conversation. Look closely at APR, which stands for Annual Percentage Rate – this is the total annual cost of the loan including all interest and fees, which gives you the widest overall picture of what you’ll be paying. If you do not look at APR and choose instead to look at individual rate areas, you may miss one or more in your calculations and end up paying far more than you were planning, which could further damage your credit in the process.

For more on how to evaluate loan options and terms when you have poor credit, or to learn about any of our installment loans or related services, speak to the staff at 1st Choice Money Center today.