There are some who believe that it’s impossible to get any kind of personal or temporary loan if they have bad credit, but this simply isn’t true. Many people with poor credit will still be able to obtain a personal loan if they take the right steps, and doing so can often be very helpful for improving overall finances.

At 1st Choice Money Center, we’re happy to offer a number of small personal loan options for Utah clients with poor credit or even no credit in some cases. In this multi-part blog series, we’ll go over some of the simple steps we recommend clients take if they’re hoping to obtain a personal loan despite poor or no credit.

Check Your Credit Reports

First and foremost, before you begin the process of applying for a personal loan, it’s important to take a close look at your credit reports. You can obtain free copies of your credit reports from all three major credit bureaus (Experian, Equifax and TransUnion) by visiting AnnualCreditReport.com.

Look for any errors that may appear and dispute them if necessary; even a small error can have a major impact on your credit score. Additionally, review the reports to get an idea of how much debt you already have and which creditors are involved. This information is incredibly helpful when it comes time to apply for a personal loan.

Compare Your Loan Options

Next up, you should be sure to compare multiple loan options to find the best one for your situation. Do some research and look into different lenders’ rates, terms and conditions. Also, ask a lot of questions up front to ensure that you understand all of the requirements prior to signing any documents.

Once you’ve chosen the right lender, make sure that you read through the loan agreement carefully and ask questions if you need clarification. Be sure to understand all of the details before finalizing your loan.

Ensure You Can Repay

Before proceeding with any loan, it’s imperative to be sure that you can actually afford the payments. Take a look at your budget and make sure that repaying the loan won’t create any undue financial stress or other problems. Additionally, try to make larger payments when possible; this will help reduce the overall amount of interest you pay.

For instance, if your loan has a 15% interest rate, a $100 payment will result in an additional $15 of debt. Therefore, it’s much wiser to make larger payments when possible and try to pay off the loan as quickly as you can.

In the upcoming parts of our series, we’ll go over a few other helpful tips for getting a personal loan with bad credit in Utah. For more on any of our loan services, speak to the pros at 1st Choice Money Center today.