If you need extra money, you might be considering applying for a personal loan. If you have less than perfect credit, then there is a bad credit personal loan out there and available to you, but take care.
If you want to be approved, there are several things you shouldn’t do before you apply.
When you have bad credit, you need to position yourself and your credit score in the best light possible. That means you need to take steps, so when you apply for a bad credit personal loan you will be approved. Those steps include things you shouldn’t do.
Don’t do These Things Before Applying for a Bad Credit Personal Loan
1.) Don’t quit your job – This may go without saying, but it should be said anyway. You don’t want to quit your job, nor do you want to change jobs when getting a loan. This can hurt your chances of being approved. This is especially true with personal loans as approval tends to be based on your credit score and income.
2.) Don’t buy anything big – If you are thinking about getting a bad credit personal loan then you don’t want to make any major purchases until after you are approved. This is especially true of anything you would need credit to buy such as a car.
3.) Don’t close any of your credit accounts – You might think that it is a good idea to pay off and close any credit card accounts you have before you get your personal loan, but you would only be half right.
If you have a credit card with a low balance or no balance, it is okay to pay it off, but keep the account open. Otherwise, you will hurt your debt to available credit ratio, and that will hurt your credit score. It is good to have credit available that you aren’t using. If you close an account the amount of available credit goes down. Here’s how to use your available credit wisely.
4.) Don’t change your bank – If you have been banking with the same bank for a number of years, now is not the time to change. Lenders don’t like to see any changes in your financial status before lending you money. If you are planning on making this kind of change it is best to wait until after you have been approved for and received your money from your bad credit personal loan.
5.) Don’t apply for any other credit – You don’t want to apply for any other types of credit during this process as a credit inquiry can hurt your credit score. See: Hard credit pull vs. soft credit pull. Instead, hold off until you have finished the loan process with your lender. At that point, you can determine what the best course of action for you is when it comes to additional credit sources.
6.) Don’t pay off charge-offs or collections – It may not seem to make sense but even if you are stepping up and paying off an old debt that has been charged-off by the credit company or sent to collections, this action can have a negative effect on your credit score. It is best to wait until you have finished the process with your bad credit personal loan before paying off these types of debt.
A personal loan can be a great credit source for you. Just take a few precautions before you apply and during the process. When you need help with a bad credit personal loan, hop on over to our website at www.betterloanchoice.com. Our team is here to help you with any of your questions. We also have an A+ rating with the BBB, so you know we have your best interests at heart.
This information was brought to you by BetterLoanChoice
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