CreditCards — Tips

This is a very different financial climate than has existed in the past, and the way people are approaching the lending process has changed quite a bit. It’s not as simple as it once was to walk through the door of a signature loan provider and walk out with handfuls of cash. It’s just time to recognize that you won’t be able to borrow funds on your good looks and charm alone anymore.

To get started, many banks and creditors will ask you to show at least some form of credit rating or past good behavior with loans you’ve taken out. You may or may not be able to provide them with anything of that nature. Be creative about other methods of showing them you’re okay to lend money to.

At the same time, if you have horrible credit, or no credit history at all, there are certain kinds of loans you’ll want to investigate. One of them is a bad credit signature loan. Although the terms and interest rates are not going to be ideal with these loans, they may be the path you have to take to accomplish your goal.

It may not seem fair for lenders to to choose whom they will give money to in a seemingly arbitrary way, but all they’re trying to do is maximize profits right? If they lend money to anyone and everyone they’ll be running in the red and soon be out of business. You wouldn’t be any different - if you lent money to a person you’d fully expect to be repaid.

Nobody can run a thriving business under those circumstances, so if they’re going to loan you the money they need to have a reasonable hope of seeing those funds come back to them. If you can prove your income - show that you have a steady paycheck which will give you the means to repay the debt - they’re going to be happy to let you borrow a chunk of change. Show them you’re a person who brings in consistent income, they’re going to be a lot less nervous about lending you their money.

How much do you need to be earning? Well, if they’re going to lend you, say, $500, I’m sure they wouldn’t be comfortable with you earning less than $1000 to $1200 per month. It should be easy to prove that with a few weeks’ worth of pay stubs. If you can’t produce enough canceled checks or pay stubs, then you may want to ask your employer for a letter proving your status as an earner.

After you’ve verified your income, your bank will have a lot more assurance about letting you have the cash. However they may want even more, in which case you might need to give them some kind of valuable item as collateral. You might want to give them your car title, or your favorite cell phone, or even a gold ring.

The main point is to give your prospective lender something of reasonable value which could be sold in the even that you choose not to pay back the money you’ve borrowed. If you can prove income and provide some kind of somewhat valuable collateral, there is less reason for them to reject your loan request. Just make sure you do the responsible thing and pay the loan back in full.