Quicken loans can be useful for people that want to get access to cash for financing a home renovation, consolidating debt, paying for an emergency expense, or just about anything. Regardless of whether you want to borrow from a bank, an online lender, or a credit union, the application process is mostly the same. Getting to know what to do and what to prepare for will help improve your chances of getting approval.
Find Out How Much You Need
You have to pick a reasonable number. You need to show to the lenders that you can afford to pay the same day loan back. So picking a realistic loan figure is essential. To decide, consider how much you need and how much you can afford to chip off of your monthly earnings in paying off the loan. Remember to include the loan’s interest rate in the calculation too.
Know Your Credit Score
Credit checks are commonly done by lenders to assess the creditworthiness of their borrowers. This lets them see if you have had experience in taking out credit in the past and how well you have managed the payments. This will also give them an idea of how trustworthy a borrower you are, especially in terms of paying the direct loan back.
Check Your Options
This would depend on the state of your credit score. If you have a good score, getting approved for a personal loan may be less of a hassle since most lenders would be willing to let you borrow. If you have bad credit, lenders might be a bit reluctant to transact with you. In this case, they may need you to either find a loan guarantor or present collateral before they will lend you money.
Check the Eligibility Requirements
Pick a lender with the best rate and then find out what their loan eligibility requirements are. See to it that you tick all the boxes and that you can provide them with the necessary documentation too for a smooth sailing application process.
Before, it is difficult for a borrower with bad credit to get a loan; especially the one that offers competitive rates. Majority of the lenders, especially banks and online loan providers, use the credit rating to decide whether they will accept the loan application or not. A bad credit score often suggests that the lender will automatically reject the application because they think that the borrower is a risk to their business. After all, a bad credit score is acquired because of a financial mistake such as default, CCJs, missed payments, etc.
To make it worse, there’s no specific rating among the lenders, therefore, you’ll never know when a lender would say yes or no to your application. Each has its own criteria and this makes things more complicated. Nonetheless, bad credit borrowers have a lot of options to choose from when they need a loan.
How To Get A Quicken Loan With Bad Credit
When you have bad credit, it’s best to increase your credit rating first before getting a loan. This will give you a chance to borrow a huge amount, score lower interest rate, and acquire better loan offers. There are three ways to fix your credit remark, and these are as follow:
Reduce Outstanding Debts
Stop using your credit card and get a copy of your credit report to know the accounts you have. Create a payment plan and be sure to prioritize the one with the highest interest rate.
Use Payment Reminders
You can either ask the bank to send you payment reminders through emails or text messages or you can set up the payment reminder manually. You can also enroll in automatic payments for your credit cards and loans to avoid missed or late settlements.
Create A New Account
Another way to fix your bad credit is to get another credit. Since it will be challenging for you to get a loan, you can apply for a secured loan, guarantor loan, or bad credit loans. However, if you want to get cheaper credits, you can go for secured loans instead. Once approved, be sure to repay on time and avoid defaulting on the loan to increase your credit remark.