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April 21, 2006
Getting a Loan With Bad Credit
Here is a question I recently received regarding getting a loan for $15000 with less than perfect credit. I have left the persons name out of this post to protect identity.
Question:
Do you know of anyone that will give me a $15,000 loan. My credit is not so good. I've been applying everywhere. They all say I will get approved and when I go ahead with the application, I am always turned dow. Can you help?
My Response:
Can you let me know where you have applied then I will go find others for you.
In the meantime, avoid applying for other loans. One problem that creeps up is applying multiple times and being turned down.
Creditors have a “heard mentality” – “Oh, they turned her down so we should too” – It isn’t fair but that’s the way many of the banks think.
Applicant's Response:
I have applied for at least 10-15 loans. Ive been turned down for all of them. I dont think anyone will help me at this point. I even paid one company $99 to find me a "guaranteed" loan.
My Response:
have gone “outside the box” on getting loans myself.
I used to work as a computer support tech and then left to start a business online – I wanted a mortgage but with a new business the bank was very hesitant to give me the loan.
What I did was focused on establishing a relationship with my bank. It took some time and lots of talking but I got the loan.
I am surprised that a site would charge you to find a loan. They appear to be in the same business as me. Building websites and getting paid a commission for referrals. Seems they are “double dipping” – Avoid paying for somebody to find you a loan
I am in the process of putting training material together to help people make money online.
In the meantime, stop applying for loans. It might take about 3-4 months to get a loan after applying for 10-15 companies. Each application shows up on your credit report and each subsequent company says “hmmm…everybody else turned her down, we should too”.
I would also contact the company that you paid to find a loan and demand your money back and if they don’t consider filing a complaint with the Federal Trade Commission www.ftc.gov
I think this is the right form to fill out (I could be wrong on this but it is a good starting point):
https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01
Hope this helps a bit and I will take a look around for you - and won’t charge you a penny ;)
The Moral of This Story:
If you have bad credit avoid excess loan applications - Each rejected loan results in your chances of getting a loan decreased.
When you have bad credit you need to take some extra time to assess your chances of getting a loan with them. E-mail the company prior to making your application. Fully and honestly explain your situation - Tell them that you don't want to apply until you are quite certain that you will get the loan.
If they pressure you to apply, refuse to do so. They are eager to get your application rolling but if you don't quality, as already mentioned, it will harm your chances of getting a loan elsewhere.
Be strong, because the lendor will pressure you to make the application. Taking your time will lead to better chances of acquiring the loan.
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