A lot of people make financial mistakes that affect their credit for the worse. Despite warnings that bad credit will discourage lenders from issuing loans, there are a number of lenders who specialize in loaning money to people with bad credit. Whether you need money for home repairs, a new car or to help you get a new business venture off the ground, there are ways around the difficulties caused by bad credit. Read on to learn how you can get a loan with bad credit.
If you've made a few mistakes over the years that have reflected poorly on your credit, don't give up. Even if you've been turned down by a couple of banks already, there are ways that you can still get a loan, even with bad credit. If you're in need of a new car, planning to start a business, or personal circumstances have arisen that require immediate financial attention you can't afford, this how to will tell you how to go about getting a loan despite your poor credit standing.
How to Get a Business Loan with Bad Credit
Step 1: Circumstances
- Your options are based on your credit history, and some circumstances may limit you more than others. Circumstances that affect your chances for obtaining a loan include:
- Credit score:
- A credit score of 580 or lower will severely limit your options.
- Multiple credit checks:
- Checking your credit score too often can affect your credit rating.
- Creditor malfeasance:
- If you have recently filed for bankruptcy you may only be able to get a high-interest loan or a restricted credit card.
- Recent Credit card and previous loan default on your record
- It is important to know your circumstances before you panic. Sit down with a financial adviser and your Credit report to get a handle on how bad your credit really is. It may not be as bad as you think. In fact, if your credit is borderline, a small loan may be just what you need to lift your score out of the danger zone.