Personal Loans With Bad Credit: How to By-Pass the Bad Rating Problem

Finding a solution to financial problems can be difficult, especially when seeking personal loans with bad credit. Banks may not be willing to take on the risk of lending to applicants with a poor track record, and even online lenders may not be completely satisfied when considering lending large sums of money.The problem is the credit score, and while this alone does not kill off the chances of gaining loan approval, it can push the overall costs up, making a loan unaffordable. But there are other options, and while an absolute guaranteed loan approval is always elusive, thinking outside the box can result in that solution being found.But where can we start? Well, the best place is to try to address the issue of low credit scores before applying for a personal loan. These scores can be improved by getting the existing debts in order, but the most important information to have first is your own credit scores.Order Your Credit ReportKnowledge is the most important weapon in your armory when it comes to seeking personal loans with bad credit. By learning your credit score, it is possible to set about improving your loan application. Once every year, it is possible to get a copy of the credit report from the credit agencies (Experian, TransUnion and Equifax) free of charge.With this document, the specific details of your credit history can be reviewed. This is because it is not unusual for lenders to make mistakes, so the score in your report might not be completely up to date. By getting a review done, the score may improve, thus helping to increase the chances of closing in on that guaranteed loan approval.Even if the score is not improved, the information garnered from the report is invaluable. The chief weaknesses can be identified, with perhaps some unknown outstanding balances on an old loan, or some late credit card repayments. Whatever the issue is, a plan to secure the personal loan can be formed once it is known.Contact Existing LendersA good place to start when applying for personal loans with bad credit is with existing lenders. Lenders are willing to negotiate when they already know the credit reputation of the applicant. So, if a bank has already granted an applicant a loan, and it was repaid without a hitch, then they are much more open to approving another loan with them.The benefits of this move is that it becomes possible to get lower interest rates, with the lender already confident that the applicant is not a high risk. Of course, the deal falls short of involving a guaranteed loan approval, but the chances of being approved are greatly improved.If an attractive deal cannot be struck with your existing lender, then simply go elsewhere. There are plenty of personal loans available online that are highly competitive. The only drawback is that it is necessary to go through the whole application process with them, and it becomes necessary to double check their reputation before signing anything.Consider an IntermediaryThere is another alternative to traditional and online lenders - an intermediary finance company. They are not the most affordable option, but they can at least track down a lender that is willing to accept the risk of lending money to an applicant others are not willing to touch. However, because the intermediary will charge a fee, getting personal loans with bad credit here is likely to be more expensive.The advantage however, is that this is the closest to a guaranteed loan approval an applicant is likely to get to. So, if the pressure is on to secure funds, this is arguably the best route to take. Still, be sure to study the terms and options associated with the personal loan to avoid extremely high costs.