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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 loans.
Here’s an example of what these extraordinary things can mean for someone who was previously declined for a loan or who may have credit problems:
Correcting bad credit issues
Taking good advice and sticking to it
-Don’t give up if the first lender says “no”
Keep in mind that this article is not intended to be a substitute for financial or legal advice. If you require financial or legal advice, you should seek the services of a competent professional.
There is a lot of information out there about personal loans that is just plain… WRONG! It is our desire to set the record straight here.
We are also concerned that the credit bureaus are the final authority on how they decide who can get a loan. If you don’t agree with the credit bureau – you can forget about any chance of getting a loan – or so they say.
There must be a solution somewhere.
Some of you reading this have more extended credit problems that you have to deal with every day. I know it’s not fair that you are constantly punished with exorbitant interest rates and loan turndowns.
Why is credit so important today
If you have good credit, it seems like you can walk into any store and say *charge* and walk out with hundreds if not thousands of dollars worth of merchandise.
For millions of Americans, getting good credit like this can be difficult. Many of us are able to get started with credit cards and loans – but over time, an emergency strikes and leaves us behind on payments.
In many cases, we find a way to recover financially, but the credit damage remains for a long time. Once this happens, anything you buy on credit costs a lot more.
Having the best possible credit is vital if you ever aspire to be debt free. This way you don’t have to pay extra for everything and the money you spend goes towards paying off the loan as quickly as possible.
If you have credit problems and are applying for a loan, the best thing you can do is list the loans and credit cards you’ve paid off in the past. Give this list of good credit references to the lender when you submit your application.
This will help the lender make a loan decision as many credit reports do not list your good credit or *on-time* references. However, when you are late on a payment, that information appears immediately.
More and more lenders are finding ways to help those who *don’t fit the box.* But there are still millions of people who get turned down for loans every year. These are the people we want to help, give them the ability to rebuild their credit and have a fair shot at getting a loan.
The first step in rebuilding your credit is to obtain credit reports from each of the three major credit bureaus: Experian (TRW), Equifax and Trans Union. Check each report carefully for errors and any derogatory information.
Don’t get a tri-merge report that has all the information from these three credit bureaus combined. A tri-merged report makes it difficult to differentiate which credit bureau reported which individual item.
If you report a disputed item to one credit bureau that is on a different credit bureau’s report, you may now find that both credit bureaus will report it — leaving you in a worse position than before.
When you receive your credit report, you will also receive paperwork that will allow you to dispute incorrect information. Fill it out and send it to each credit bureau for any incorrect information being reported.
The following list shows the rank of offending information in order of harm. The hierarchical order, from most harmful information to least harmful, is as follows:
bankruptcy
foreclosure
tax lien
defaulted loan
repossessions
Decision
Collection
late mortgage payment
late revolving credit payments
credit rejection
inquiry
When you get credit reports from each of the three bureaus, you may find that some of the questionable information is duplicated on one or both of the other credit reports, but not all will be.
It is very important that you dispute each questionable item individually.
If you try to dispute *multiple items* at the same time, the credit bureau may claim that your request is frivolous and refuse to investigate it.
Creditors are not required to report to credit bureaus. So if you dispute an item and the creditor doesn’t verify it, that item will be removed from your report. The credit bureau has 30 days to verify the information.
personal loan defined
You see the term personal loan 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 simply as a loan secured only by your promise to repay (a signature loan).
When dealing with a lender, you need to decide what you will use to assure the lender that you can repay the note.
Keep in mind that if you have credit problems, getting a secured loan against real estate is easier than getting an unsecured personal loan.
Once you’ve decided, all you need to do is work with lenders who handle the type of loan you’re looking for.
for credit problems
If you have credit issues, your choice of lenders is very narrow. Your best bet is to contact the lenders and explain your situation, then see what they say.
Also ask your friends to whom they have gone for loans, you can get a good introduction to a loan officer that way.
getting a personal loan
The application process for a personal loan is quite simple and you can usually get a reply within minutes of applying.
Make sure you bring the following information with you (or you may have already memorized some of it):
– Current and previous address
–Social Security numbers for yourself and your spouse
– Salary information and paycheck stubs
Two years’ tax returns (if self-employed)
–Driver’s license and vehicle information
–Employer’s address and length of employment information
Applying for a personal loan if you have credit problems
If you have credit problems, as you may already know, the process becomes more complicated.
You have to explain what was the situation that led to the credit problem and then see if the lender will go for it.
If you have credit problems, don’t apply for a loan until you get your credit report in the best possible shape. Otherwise, what happens is that when you apply, it creates an inquiry on your credit file and when subsequent lenders see that inquiry it makes it harder to get a loan. In other words, every lender will think, “Why should I give you a loan when XYZ Company turned you down?”
If you need a loan quickly, and have credit problems, you are limited in what you can do. We’ve found that one of the best things you can do is go to the lender you currently have a loan with and ask for an increase in your credit line. This works best for lenders where you have *on-time* payment history.
Explain the situation to your lender and state that you want to try to avoid making any credit problems worse.
If this does not work, your next step is to approach the lenders with whom you have taken loans in the past. Ask them if they can reopen the credit line. Many lenders prefer to work with past customers rather than seek new ones.
Getting any kind of loan becomes very difficult if you have a credit problem. so we made http://www.Access2Loan.com Because we believe that everyone has the right to borrow money.
Common Problems in Applying for the Loan
The most common problem when people are turned down for loans is with loan items.
For example, one of our members reported someone else had bad credit. He didn’t find out until he went to apply for the loan and was shocked. In their first dispute the offending information was not removed. Afterwards, he checked in with us. We told them that they needed to send the dispute to both the creditor and the credit bureaus and that they needed to send copies of proof of payment. We also showed him what to do if that didn’t work. Fortunately, following our advice it was removed and at last report he was approved for the $4,000 computer purchase.
Another problem is verifying income. 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 paycheck stubs and bank statements covering several months.
Another problem is in understanding when exactly it is that you are applying for the loan. I know it sounds ridiculous, but many lenders make it look like you’re pre-approved when you’re actually not.
For example, one nationwide loan company has been known to send letters stating that you are *pre-approved* for $3500-$5000. When you go to collect the loan check, they tell you that they will need some verification information so they know who they are giving the check to. Then they ask for enough information (without telling you) to run a credit check and decide how much you can borrow. This is different from what many people *hope* for pre-approved offers.
Because they don’t tell you when to run a credit check, it may hinder your ability to get a loan elsewhere because of the extra inquiries.
If you have credit problems and still want to try for this type of loan, request a meeting with the manager before applying and explain your situation to the manager and ask what options are available.
Don’t let anyone do a credit check if you don’t have a chance to get approved – more than 5-6 inquiries in a span of 6 months will reduce your chances of getting a loan.
If these sources don’t work, contact the bank where you have the accounts. Some give loans, some only credit cards, and sometimes you can use the credit card the same way you would with a loan. Your local bank may be willing to overlook some problems in order to keep your business.
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