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Jim Eastman
Bad Credit Loan -- How to Get the Best Interest Rate
Bad credit loans are in high demand. And if you do
any research on "bad credit loan", you'll find plenty
of advice on how to get the lowest interest rate.
You'll also find plenty of people willing to give you a
bad credit loan, but you'd be making a mistake to
accept it.
Unfortunately, most of what you'll find approaches
the problem from the wrong direction. The way to
get the VERY best interest rate on a bad credit loan
is usually overlooked or concealed altogether.
But before we continue, let's digress briefly and look
at how significantly the higher rate for a bad credit
loan affects the borrower.
Let's say you want to buy a house, but have bad
credit. No matter how diligently you shop for a
lender, you're still be charged a higher interest rate
for a bad credit loan than if you had good credit.
With good credit, you might get a mortgage loan at
6% interest. But a bad credit loan will cost you closer
to 12%. Assuming you get a $100,000 mortgage
over 30 years, the difference you'd pay in interest
amounts to a monstrous $154,461.60 MORE
because you have bad credit. That's over 1? times
the loan itself!
Now getting back to our original problem, how can
you get a better interest rate for a bad credit loan?
The answer is probably not what you were
expecting.
The solution is to "think outside the box." The way
to get a bad credit loan with the best interest rate is
to NOT get one! Instead, spend a couple of months
fixing your bad credit, and then look for a "good
credit loan" instead.
This answer probably comes as something of a
shock to you. More than likely, several objections to
this approach will come to mind.
1. "I need a loan NOW" or "It's not worth my while
to wait until I repair my credit."
Oh really? Well, is it worth a savings of $150,000 or
more? Granted you may not be looking for a
$100,000 loan. But even if you want to borrow only
$10,000 or so, the better rates you'll enjoy with
good credit will still save you several thousand
dollars.
2. "Fixing my credit will take too long, or it just isn't
possible."
It's often possible to make very a significant
improvement in your credit rating in just a few
months, and in some cases as little as 30 days.
3. "I don't know how to repair my credit and can't
afford to hire a credit repair agency"
For a fraction of the cost of a professional agency,
you can purchase a good book on credit repair that
will walk you through the whole process.
4. "Do-it-yourself credit repair is too difficult" or "I
don't think I can repair my own credit"
Don't be intimidated by the idea of fixing your own
credit. If you can write a few letters, address, stamp,
and mail them you can repair your own credit.
Your decision comes down to this; you have two
choices.
1. You can spend some time (maybe a LOT of time)
shopping for a bad credit loan with the lowest
possible rate, and still end up paying thousands
(even tens of thousands) more in interest.
2. You can spend some time fixing your credit and
spend those thousands on your family's needs,
instead of paying them to your lender.
Do you really think your lender needs your hard
earned money more than you and your family need
it? Anybody can work on fixing their own credit.
That's right, anybody!
Get a good book on credit repair and get started
TODAY!
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About the Author
Jim Eastman is the support contact for
ErasingBadCredit.com. Anyone wanting to repair
their credit can get valuable advice by signing up for
the FREE mini-course at
http://www.ErasingBadCredit.com.