There are many people who think that you cannot possibly receive a loan if you have bad credit and give up trying the moment they are categorised as such. However, loans for people with credit do exist, so the fact that you have bad credit is not necessarily the end of the road for you. It is true that it will close many doors and that generally banks and private loans companies will refuse to give you loans, but that does not mean you will not have any other opportunities. You can still be eligible for bad credit personal loans and even bad credit car loans, if you apply at a company that specialises in giving such loans. Eligibility is established after certain criteria is satisfied, as happens with every other type of loan, but the credit loan provider will be able to take a more tailored approach to your bad credit history.
Eligibility terms are established by each loan provider, so you should inquire directly with one of their offices, if you plan to get a credit loan. Following are some criteria that will may determine whether you receive a loan or not. Your chances of receiving a bad credit personal loan will increase, if you can provide proof of a stable income. Whether you are a full time, part time or casual employee, this does not usually matter as long as you can bring at least three months of bank statements, and your recent payslips. Generally, you will have to be under stable employment for a couple of months minimum in order to become eligible for credit loan. There are also loan providers that will ask you set up a payroll deduction. This means that a part of your salary will be automatically taken out when you are paid, and redirected straight to your loan provider to cover your loan payment. This is an extra security measure that will sometimes allow the loan provider to provide you with a larger loan.
Even though loans for people with a bad history exist and you have a stable income, you should still settle your defaults before applying for a credit loan. If you have a default made in the past, you should show proof that you paid it to your credit loan provider to ensure they will be willing to give you the loan. You should ask the company where you have a default to send you a letter that shows you paid your debts, if you have no other means to prove your payment. Serious Credit Infringements should be generally paid in full or even settled to ensure your eligibility for a loan.
An additional aspect of credit loans is that you will need to secure the loan against an asset. When it comes to personal bad credit loans, the providers usually ask them to be secured against a vehicle. The car you wish to put down as security should be registered on your name and be comprehensively insured, and often no older than eight years. All in all, even though there are a few steps you have to follow and proof that you need to gather, you will still often be able to get a loan despite your credit.