Loans for Consumers with Bad Credit

Is it possible for people with bad credit to get loans in their name? You'd think not, wouldn't you? After all, people with bad credit have a history of not paying off previous loans which makes them bad credit risks - right? They've gotten into trouble with credit before and there's no place out there that will loan them money with a bad credit history - right? Well, that's partially right.

Actually, it is possible for people with bad credit to get a loan. They might not be able to always get it on their own, but there are options available to those with bad credit. The terms may not be attractive, and it certainly might not be easy, but it is possible. 

The first - and probably most viable option - for people with bad credit to obtain a loan is to find a co-signer for the loan. The co-signer must be a person with a clean credit history. Basically, when a co-signer secures a loan, you both appear on the loan as responsible parties. The co-signer is essentially telling the lending company that they will make sure you make your payments and if you don't, they will. 

Having a co-signer on a loan is tricky business, however. Usually a co-signer is a family member or close friend. If anything goes wrong, the relationship between the two of you could go horribly sour, so if you are asking someone to co-sign on a loan with you, you should either be sure you can make your payments or risk damaging the relationship you have with them. 

People with bad credit might also be able to secure a loan in their name from a lending company, but they are most likely going to have to pay a higher interest rate than those who have good credit. For example, a car loan for a person with good credit can be obtained with a loan that has a financing rate as low as 4 percent in some cases. A person with bad credit might pay up to 12 percent for the same loan. As you can imagine, that means higher payments on the loan for the person with bad credit. 

A secured loan is another option for people with bad credit. Essentially, a secured loan uses the property you are borrowing for as collateral against the loan. If you don't make the payments, the property is repossessed. Secured loans for people with bad credit are generally given for a vehicle which means that non-payment means the car goes bye-bye. 

The good news is that if people with bad credit are able to secure a loan, they can rebuild their credit with timely payments and non-default. That puts them on the road toward financial stability and a favorable credit report. 

Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Financing Suite as well as consumer credit restoration and optimization. www.ExpertCreditConsultants.com.

 

Debt Consolidation vs Debt Management vs Credit Repair

Credit Counseling, Debt Management, Debt Consolidation, Credit Repair. How do they help consumers with their debt?

Credit Counseling Companies will review your credit reports and unique financial situation, as well as help you create a budget. There are many companies that will provide this basic service free or very low cost. Most also offer two basic programs.

One is a Debt Management Plan or Structured Debt Repayment Program. With this program, they will first want to see your accounts at least 180 days behind. For an initial fee, they will try to settle your accounts for less than what is owed. Then, you will make one payment to the Credit Counseling company and they will pay each of your accounts for you. Your monthly payments will also include a fee to the company for providing this service. This can help a few consumers in special situations, but for the most part, consumers need to learn how to manage their own debt or they will find themselves in the same situation again. 

Another program is Debt Consolidation. With this program, instead of the company paying each of your creditors, they will consolidate all accounts into one loan. This will close out all of those individual accounts. You then make the one monthly payment for the consolidation loan. Keep in mind though, that in order to have a good credit score, you will need old accounts with good payment history. If these are closed out, they will be reporting in a negative status for the next seven years.
Credit Repair Companies have each of your accounts reporting on your credit reports validated. Statistics show that approximately 80% of reports contain errors. Credit Repair can find these and have them corrected or removed. No credit repair company can legally claim to have every negative account on your reports deleted. There are laws preventing Credit Bureaus from reporting accounts incorrectly, outdated, or unverifiable.

Your credit score can mean the difference between getting a reliable vehicle, owning your own home, renting a home, or even obtaining certain types of jobs, so it’s very important to get a good handle on your debts and learning to manage them properly.


Expert Credit Consultants is a company based in the Dallas/Fort Worth metroplex and registered in the state of Texas that can work with you on all of these tasks.   www.ExpertCreditConsultants.com

Professional Credit Repair Organizations

When it comes to credit repair, there are many professional organizations out there who are willing to help you with this monumental endeavor.  It takes a lot to make repairs to bad credit and it can be overwhelming when you try to do it on your own.  That’s why these professional organizations were formed and they can invaluable for you.


The truth is that many of these organizations really can help a person repair their credit and do so in a very professional way.  They will work with you to assess exactly where your credit is and where you want it to be.  They will help you set goals and then do what they can to help motivate you to achieve those goals.

Of course, there are many credit repair organizations who aren’t exactly on the “up and up”.  They will make outrageous claims in their advertisements such as they have the ability to completely erase all negative account information from your reports, create a new credit identity for you, and even erase bankruptcies that are on your credit record.  Stay away from companies who make any claims that are even a little similar to these.

You should also avoid credit repair companies who ask for their full fee up front before any work is done to repair your credit.  Some of these so-called professional credit repair organizations also will not disclose your legal rights to you in the even that you may decide to not secure their services thus causing them to lose money.

There is a school of thought that says you don’t even need the services of a professional credit repair organizations since credit repair can be done by you yourself.  But as I said before, it’s often a difficult and frustrating process.  If you want to secure the services of a professional credit repair organization, ask questions.  Make sure they know and follow all credit repair laws. The laws that govern the credit repair organizations are defined in CROA. A couple of the major consumer protection laws are FCRA and FDCPA.  If a credit repair company says they can repair your credit for $300, or $500, that's a sign that they don't know the credit repair laws. Those companies typically just send out a basic dispute form letter found on the internet to each of the credit bureaus and stop there.

Legal and effective credit repair requires a lot of knowledge of the laws, what items are more heavily weighted in the score, and several letters to not only the credit bureaus, but also to collection companies and original creditors. Your credit report should be reporting 100% accurate, timely, and verifiable information.

Expert Credit Consultants, LLC specializes in credit restoration and optimization.  www.ExpertCreditConsultants.com