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Jun 04

How to Borrow Money When Your Credit Rating is not Good

Just because you have a bad credit rating or just starting out to establish yourself in the credit realm does not mean you will have a difficult time filing for a loan. There is now a type of MONEY LENDER that caters to individuals just like you. All you need is to do a little research and you will easily find these types of loan companies that offer CREDIT to below average credit rating people.

 

Things to Remember

 

The first thing to remember when you’re a first time borrower (or one with a low credit rating) is to make sure you only borrow the amount of money you actually need. It is usually protocol for loan entities to offer you a higher amount but always understand that the higher the loan is, the higher the interest would be and the longer it will take for you to repay the debt. The main rule here is to refuse the offer and just stick to the amount that you actually need. Always remember that you should never be tempted to borrow a larger amount than what you actually need because this will only give you a harder time repaying the loan. Also, most lenders who would start you off by luring you to borrow a higher amount are lenders that you should avoid. So rule number one is to stick to the loan amount that you need.

 

Selecting the Lender

 

Select several loan entities from which to borrow money from. BORROWING money entails a high degree of responsibility so after establishing the amount of money you need; check out several lenders that you think would be suitable for your need. Study and understand their loan application processes. Second, know and understand their terms and conditions so you don’t get caught in a situation where you end up paying more than what you need to. If in doubt reject the offer outright. Third, evaluate each lender that you have selected and compare each others offer. Finally, make sure that you can easily get in touch with their customer service representative, in the event that you run into problems regarding your loan.