A wise friend once told me that *extraordinary people* are just *ordinary people* who do extraordinary things.
It is the same with loans. People who get loans after being turned down are not extraordinary people, they are ordinary people who do extraordinary things to get their loan.
Here is an example of what these extraordinary things could be for those who may have previously been turned down for a loan or who may have credit problems:
-Fix bad credit issues
-Receive good advice and stick to it.
-Do not give up if the first lender says “no”
Please note that this article is not designed to replace financial or legal advice. If you need financial or legal advice, you should seek the services of a competent professional.
There is a lot of information about personal loans that is simply…wrong! It is our wish to set the record straight here.
We are also sick of how the credit bureaus seem to think they are the ultimate authority on who can get a loan. If you disagree with the credit bureau, you can forget about any chance of getting a loan, or so they say.
There has to be a solution somewhere.
Some of you reading this have more extensive credit problems that they have to deal with every day. I know it’s not fair to be continually punished with excessive interest rates and loan rejections.
Why credit is so important today
If you have good credit, it seems like you can walk into any store and say *load it up* and walk out with hundreds if not thousands of dollars worth of merchandise.
For millions of Americans, good credit like this seems very hard to come by. Many of us can start with credit cards and loans, but eventually, an emergency arises and we fall behind on a payment.
In many cases, we find a way to recover financially, but the credit damage lingers for a long time. Once this happens, everything you buy on credit costs a lot more.
If you’ve ever wanted to be debt free, it’s important to have the best credit possible. That way, you don’t have to pay extra for everything, and the money you spend goes toward paying off debt as quickly as possible.
If you have credit problems and are applying for a loan, one of the best things you can do is prepare a list of the loans and credit cards you have paid off in the past. Give this list of good credit references to the lender when you apply.
This will help the lender in the loan decision because many credit reports do not list your good credit or references *on time*. However, when you’re late with a payment, that information pops up quickly.
More and more lenders are finding ways to help people who don’t *fit the box.* But there are still millions of people who are denied a loan every year. It’s those people we want to help by giving them a fair chance to rebuild their credit and get loans.
The first thing you need to do to rebuild your credit is to obtain a credit report from each of the three major credit bureaus: Experian (TRW), Equifax, and Trans Union. Please review each report carefully for errors and any derogatory information.
Do not get a combined report that combines all the information from these three credit bureaus. A combined report makes it difficult to distinguish which credit bureau reported which individual item.
If you tell one credit bureau about a disputed item that’s on a different credit bureau’s report, you may now find that both credit bureaus will report it, leaving you worse off than before.
When you get your credit report, you’ll also receive documents that allow you to dispute incorrect information. Fill it out and send it to each credit bureau for any inaccurate information being reported.
The following list shows the range of derogatory information in order of damage dealt. The hierarchical order, from the most harmful information to the least harmful, is as follows:
loans in arrears
late mortgage payments
Revolving Credit Late Payments
When you get credit reports from each of the three bureaus, you’ll find that some of the questionable information is duplicated on one or both credit reports, but not all of it will be.
It is very important that you discuss each questionable item individually.
If you try to dispute *multiple items* at the same time, the credit bureau may claim your request is frivolous and refuse to investigate it.
Creditors do not have to report to the credit bureau. So if you dispute an item and the creditor doesn’t verify it, the item will be removed from your report. The credit bureau has 30 days to verify the information.
Definition of personal loans
You will see the term personal loans used by many different lenders. Each lender may have a different idea of what a personal loan is.
Some lenders define it as a small loan secured by real estate. Some lenders define it as a small loan secured by an asset. Some view it as a loan secured solely by your promise to pay (a signature loan).
When you work with a lender, you must decide what you will use to assure the lender that you can pay the note.
Keep in mind that it’s easier to get a real estate loan if you have credit problems than it is to get an unsecured personal loan.
Once you’ve decided, you just need to work with lenders that handle the type of loan you’re looking for.
For credit problems
If you have credit problems, your choice of lenders is very limited. Your best bet is to contact the lenders and explain your situation, then see what they say.
Also ask your friends who they’ve borrowed from, that way you might find a good introduction to a loan officer.
Get personal loans
The personal loan application process is fairly simple, and you can usually get a response within a few minutes of applying.
Be sure to bring the following information with you (or you may already have some of it memorized):
–Current and previous address
–Social Security number for you and your spouse
–Wage information and pay stubs
–Two-year tax returns (if self-employed)
–Driver’s license and vehicle information
–Employer address and duration of employment information
Apply for a personal loan if you have credit problems
If you have credit problems, you may already know that the process becomes more complicated.
You will need to explain what situation caused the credit problem and then see if the lender will agree.
If you have credit problems, don’t apply for a loan until you have your credit report in the best possible shape. Otherwise, what happens is that when you apply, it creates a query on your credit file, and when subsequent lenders see that query, it makes it more difficult to get a loan. In other words, every lender will think, “why should I give you a loan when company XYZ down the street turned you down?”
If you need the loan quickly and have credit problems, you are limited in what you can do. One of the best things we have found is to go to the lenders you currently have loans with and ask for an increase in the credit line you have. This works best for lenders where you have a *on-time* payment history.
Explain the situation to your lender and that you want to try to prevent credit problems from getting worse.
If this doesn’t work, your next step is to go to the lenders you’ve borrowed from in the past. Ask them if they can reopen a line of credit. Many lenders would rather work with past customers than have to find new ones.
If you have credit problems, getting any type of loan becomes very difficult. That’s why we created http://www.Access2Loan.com because we believe that everyone has the right to borrow money.
Common problems when applying for a loan
The most common problem when people are turned down for a loan is credit related items.
For example, one of our members had someone else’s bad credit on their report. He didn’t find out until he went to apply for a loan and was surprised. In their first dispute, the derogatory information was not removed. Later, he communicated with us. We told him that he needed to submit a dispute to both the creditor and the credit bureau and that he needed to send copies of payment receipts. He also showed him what to do if that didn’t work. Fortunately, he was removed on our advice, and according to the latest report, he was approved for a $4,000 computer purchase.
Another problem is in income verification. Many lenders will only consider income from a source that is at least two years old. What you can do to overcome this is to show check stubs and bank statements that cover several months.
Another problem is understanding exactly when you are applying for a loan. I know this sounds funny, but many lenders have made it sound like you are pre-approved when in fact you are not.
For example, a nationwide loan company has been known to send out letters stating that you are *pre-approved* for $3500-$5000. When you go in to get the check for the loan, they tell you that they will need some verification information to know who they are giving the check to. Then they ask you for enough information to run a credit check (without telling you) and decide how much you can borrow. This is different than what many people *would* expect from a pre-approved offer.
Because they don’t tell you how to run a credit check, it may hinder your ability to get a loan elsewhere, due to the extra inquiry.
If you have credit problems and still want to try a loan like this, make sure you see the manager before you apply and tell them your situation and ask what options are available.
Don’t let anyone run a credit check if you don’t have a chance to get approved; more than 5-6 inquiries in a 6 month period will affect your chances of getting a loan.
If these sources don’t work, try the bank where you have your accounts. Some make loans, others only take credit cards, and sometimes you can use a credit card the same way you would a loan. Your local bank may be willing to overlook some issues to keep your business.