“It is still possible to get a personal loan when you have terrible credit. The key is to settle on savvy decisions as a borrower and to begin remaking your credit. It may feel overpowering yet the progressions will offer you some assistance with getting the cash you require and get control of your accounts.”
When life throws us an unexpected curveball, sometimes we all need a little help. Our first instinct tell us to get a payday loan, but we all know that this is a huge mistake. Payday loan companies tend to have an annual interest rate averaging 400%. These companies will prey on people that don’t have access to traditional credit.
About six years ago, I was in a similar situation. I fell behind on my credit card payments and a few went into collections. I eventually made payment arrangements with my creditors and negotiated a settlement for those that were in collections, but the damage was already done.
My credit score dropped significantly. I was in the low 700s and my credit score was in the 550 range. It was the first time I’ve seen score go down this much, and I thought my life was ruined.
A year later, there was a water leak in my condo. Homeowners insurance obviously covered the damage, but I was responsible for paying for the damage upfront since the insurance check would come weeks after.
Here’s how I Got a Personal Loan with Less Than Perfect Credit
The first step I took was to get a free copy of my credit report at Annual Credit Report. You’re allowed one copy from each bureau once a year. I first looked to see if there were inaccuracies on my report. Long and behold, there was a collection account that I paid off that was never reported as “settled for less than full amount.”