Bad Credit Loans: Qualifying for a Loan with Any Credit Situation
A credit score is just a number. Numbers are important, but these numbers can’t possibly tell the entire story about a person. And our past shouldn’t dictate our future. The downside of credit scores is that for people genuinely trying to improve themselves, it makes it difficult to access the tools necessary to dig out and get moving again in life.
At Hock Your Ride, we believe in our customers. And that’s why we’ve spent the past decade creating solutions that help our friends dig themselves out of a hole and get back on the road to financial success. A credit score should never come between you and the future you deserve.
If you’re searching for bad credit loans, we’d like to provide some helpful advice that will make it easier for a loan officer to say “yes”.
1. Avoid Filling out Applications for Bad Credit Loans on Non-Lender Sites
There are a ton of websites that claim they can provide instant cash to meet your needs. Unfortunately, most of these sites are simply loan aggregator sites. The webmasters invest a lot of time and money into marketing their website so that it shows up first on Google, Bing and Yahoo, but the site itself does not represent a lender, or anyone that can make a promise about providing bad credit loans.
The phrasing used is designed to convert their visitors into applicants. Then, the owner of the site submits your online application to the lenders that pay them for applicants. The site makes money based on your application, not the approval and funding of your loan.
2. Establish a Personal Relationship with an Individual at the Lending Company
The biggest issue with applying for a loan online, whether through an aggregator site or directly with a lender, is that you’re missing out on the opportunity to establish rapport with the loan officer. At Hock Your Ride, we get to know our clients on a first name basis. Every loan we approve involves a face-to-face transaction. This allows us to get our customers the cash they need in-hand, in as little as 30 minutes. But, more importantly, it allows us to treat you as someone that’s bigger than a number on a credit score.
The personal relationship with your lender is incredibly important if you need to overcome a damaged credit history. It’s a lot easier for a loan officer to hit the “decline” button if you’re simply a number on a computer screen.
3. Gather the Evidence of Your Good Name Before Applying
When you request consideration for one of the bad credit loans that a lender offers, you need to be prepared to show all of the amazing things that will make you a good borrower (aka risk). Gather the following:
A list of references that can vouch for your character and responsibility.
Proof of income (include bank statements that show regular cash-flow) to prove you can repay any bad credit loans you take out in your name.
A list of assets you own, unencumbered by other loans or obligations.
Examples (with evidence) of how you’ve repaid past loans, or resolved past difficulties reported on your credit history.
A complete employment history that shows commitment to projects and your employers.
A detailed explanation of the reason behind your financial difficulty, the lessons you’ve learned, and how you’ll avoid similar mistakes in the future.
The entire purpose of this exercise is to take the time to gather all the information you have that can outweigh a number on a credit score. You want to provide the loan officer with an excuse to hit the “approve” button and provide you with one of their bad credit loans. If a loan officer has to go hunting for your good information, when the negative information is so readily available, you’re not very likely to be approved.
4. Did you know it’s sometimes possible to appeal a declined loan application?
Established lenders have processes in place to review a declined loan application. Many applicants don’t realize this. While an appeal is not a guarantee that you can be approved, it’s worth taking the shot! In cases where the decision was made quickly to decline your application, take the opportunity to plead your case to the company. Give them reasons to reconsider your application by providing the information you gathered in part three.
The squeaky wheel is always the first to be oiled, and your goal is to become a squeaky wheel, without alienating the people that can help get your application for bad credit loans approved. The best tactic for balancing the need to make noise, with the need to demand attention, is to ask: “Can you provide me with more details on why my application was declined? What are the things I could do differently to improve my chances on my next application?”
These questions are designed to give you the ammunition you need to file a successful appeal and hopefully get approved for the bad credit loans you need. For example, if the lender states that poor payment history was the main reason for declining your application, you could reply with proof that you’ve reestablished solid payment history with the people you still do business with. You can’t change the past, but you can show them that you are presently much more responsible.
Avoid the Need for a Credit Score by Leveraging Your Unencumbered Assets to Instantly Qualify for the Bad Credit Loans You Need
Use your car to instantly qualify for a cash loan. Hock Your Ride has revolutionized the process that thousands of Australians use every day to instantly qualify for the cash they need. Virtually any unencumbered asset of value can be used to access cash, without the need for pristine credit or a lengthy approval process.
The process some lenders use to approve applicants for bad credit loans can be humiliating. Skip the hassle and work with lenders that are willing to approve your application without running a credit check. Develop a personal relationship with your lender, and fight an unjustified denial by politely requesting more information and then filing an appeal targeted at overcoming the lender’s initial objections.