How to Get Loans When You Have Bad Credit

 

One of the first things banks look at when you apply for a small business loan is your credit score. As a small business owner, you may not have a great credit score. In fact, if your score is under 600, your chances of getting a loan significantly decrease. But having bad credit doesn't mean you can't get a small business loan. There are a few options to help you get a loan for your small business even with bad or low credit.

Talk To Your Bank

First things first, talk with your bank. They can tell you how bad your credit really is. They will be able to see what specifically has caused your credit to go bad and will have ideas on how to improve your credit. The bank can also look at your specific circumstances and give you some advice on how to get a loan for your small business.

Improve Your Credit Score

The best thing you can do for your self is start improving your credit score right away. Unfortunately, it takes a few years to get your score up, so waiting to get a loan while your score improves may not be an option. Even if you cannot wait for your score to improve, start following these tips for improving your credit score:

  • Pay all your bills on time
  • Close credit cards or credit lines you don't use
  • Pay off current credit cards and credit lines
  • Only open new credit cards and lines of credit you absolutely need
  • See our article on Credit Scores for more information about credit scores. 

Find A Co-Signer

Someone with good credit could co-sign for you so your small business can get a loan. The loan will be in your name and you will be responsible for making the payments, and the co-signer will only be liable for the loan if you stop making payments or if you start falling behind in your payments.

Separate Business And Personal Finances

It is recommended that when you open a business, you want to be sure to separate your business finances from personal finances if at all possible. This includes using your business EIN (see our article on EIN at http://www.wbsonline.com/resources/federal-employer-identification-numbers/) and establishing a line of credit or opening a credit card through your business. Banks will still look at your personal credit if you apply for a loan through your business, but often times good business credit can help make up for bad personal credit.

Assets

Sometimes certain assets can help you secure a small business loan. If you have large assets, a bank may approve you for a loan equal to the worth of your assets. Make a list of your business and/or personal assets and their values for the bank and talk with them about using the assets as collateral for your loan.

It is important to watch out for companies promising loans to people with bad credit, when you begin your search. There are many companies claiming to approve you in minutes for a loan no matter what your credit score is. These companies usually have very high interest rates and/or loads of expensive hidden fees and some may even turn out to be scams. Read all the fine print and talk with a financial advisor before applying for one of these loans and providing them with sensitive personal information. And it's safe to say if it sounds too good to be true, it probably is!

Peer Comments

Mrs Jenna Mooner

Hello Every One,

My Name is Mrs Jenna Mooner, i live in USA and life is worth living comfortably for me and my family now and i really have never seen goodness shown to me this much in my life as i am a struggling mum with three kids and i have been going through a serious problem as my husband encountered a terrible accident last two weeks, and the doctors states that he needs to undergo a delicate surgery for him to be able to walk again and i could not afford the bill for his surgery then i went to the bank for a loan and they turn me down stating that i have no credit card, from there i run to my father and he was not able to help, then when i was browsing through yahoo answers and i came across a loan lender Mr Isaac Robinson who provides loans at an affordable interest rate and i have been hearing about so many scams on the Internet but at this my desperate situation, i had no choice than to give it an attempt and surprisingly it was all like a dream, i received a loan of $45,000usd and i payed for my husband surgery and thank GOD today he is okay and can walk and is working and the burden is longer so much on me any more and we can feed well and my family is happy today and i said to my self that i will shout aloud to the world of the wonders of GOD to me through this GOD fearing lender Mr Isaac Robinson and i will advise anyone in genuine and serious need of loan to contact this GOD fearing man via (isaacrobinsonloanlink@gmail.com)and i want you all to pray for this man for me.

Mrs Jenna Mooner

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LOAN OFFER

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How i got my loan from a genuine loan company.

Hello every one,

Do you need a loan to pay off your bills and debts? Do you need funds to expand your business? Do you have bad credit card? Have you been rejected by credit union,banks and other financial agencies? Worry no more, for we are here to render financial assistance to your loan crisis. We offer loan at a very reliable beneficiary low interest rate,we are also certify and accredited by government to issues out financial assistance to those who are in financial crisis. We are reputable,genuine and legitimate loan lender. If interested kindly contact us via email: lewisloancompany@yahoo.com

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LOAN

My name is Mr Paul Ferdinand, i am from Chicago USA, married, i have been searching for a genuine loan company for the past 3 months and all i got was bunch of scams who made me to trust them and at the end of the day, they took my money without giving anything in return, all my hope was lost, i got confused and frustrated,i find it very difficult to feed my family, i never wanted to have anything to do with loan companies on net, so went to borrow some money from a friend, i told him all that happened and he said he can help me, that he knows a loan company that can help me, that he just got a loan from them, he directed me on how to apply for the loan, i did as he told me, i applied, i never believed but i tried and to my greatest surprise i got the loan within 24 hours, i could not believe, i am happy and rich again and i am thanking God that such loan companies like this still exist upon this scams all over the places, please i advise everyone out there who are in need of loan to go for fidelityloanfirm@outlook.com they will never fail, your life shall change as mine did.

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LOAN

My name is Mr Paul Ferdinand, i am from Chicago USA, married, i have been searching for a genuine loan company for the past 3 months and all i got was bunch of scams who made me to trust them and at the end of the day, they took my money without giving anything in return, all my hope was lost, i got confused and frustrated,i find it very difficult to feed my family, i never wanted to have anything to do with loan companies on net, so went to borrow some money from a friend, i told him all that happened and he said he can help me, that he knows a loan company that can help me, that he just got a loan from them, he directed me on how to apply for the loan, i did as he told me, i applied, i never believed but i tried and to my greatest surprise i got the loan within 24 hours, i could not believe, i am happy and rich again and i am thanking God that such loan companies like this still exist upon this scams all over the places, please i advise everyone out there who are in need of loan to go for fidelityloanfirm@outlook.com they will never fail, your life shall change as mine did.

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Lee Chang

Greetings..
Please contact us for your secure and unsecured Loan at an Interest rate of 3%
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* Are you financially squeezed?
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If you have any of the above problems, we can be of assistance to you but I want you to understand

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Regards
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Lee Chang

Greetings..
Please contact us for your secure and unsecured Loan at an Interest rate of 3%
........................................

Is the difficulty of the economy affecting you this year, is your bank refuses to give you a loan

for this year? If your answer is yes, then you need a loan. I'm Mr Lee Chang, the owner of a

lending company We offer safe and secure loans at an interest rate of 3%.


* Are you financially squeezed?
* Do you seek funds to pay off credits and debts?
* Do you seek finance to set up your own business?
* Are you in need of private or business loans for various purposes?
* Do you seek loans to carry out large projects?

If you have any of the above problems, we can be of assistance to you but I want you to understand

that we give out loans at the interest rate of 3%.

* Borrow anything up to $95,000,000 USD.
* Choose between 1 to 20 years to repay.
* Choose between Monthly and Annual repayments Plan.
* Flexible Loan Terms.
Please if you are interested check back with us through this email

address:leechangloancompany.ch@gmail.com

We promise a 100% guarantee that you will receive your loan at the end of this loan

transaction.There is no security check, no credit check

Regards
Lee Chang
LEE CHANG LOAN COMPANY

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loan offer

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Financial Instrument For Lease/Sale ( BG, SBLC, MTN

We offer fresh cut bank instrument for lease/sale, such as BG, SBLC, MTN, Bank Bonds, Bank Draft, T strips and other. Leased Instruments can be obtained at minimal expense to the borrower compared to other banking options and we also discount/monetize BG's.
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How I Got My Loan

My Name Is Mrs Elizabeth Cohen,
I want You all To be careful there.nobody can help you here or even suggest how you can get financial help.any answer of a loan lender to your question,you MUST ignore,because they are SCAMS…real SCAMS…i was a victim of which i was ripped thousands of dollars…well thank God for a Andrew Clinton Loan firm,I was referred to by my cousin,who is by name,Mr Joe Phillip Of pay day loan firm.They made my life a valuable one,and gave it a meaning.I was approved loan of $50,000.00 USD AND IN 28
HOURS after meeting up to their necessary requirements,my loan was deposited in my bank account.Though I was very nervous with the loan firm at the first place due to my previous bad experiences,especially when the issue of me settling the transfer charges came up,I hold on to my faith due to the fact that my relative referred me,got it cleared,and as God should have it.little did I know that my financial shortcomings has come to a final HALT .If not for that quick referral from a relative of that genuine source ,I would have regretted my total life,because at that point in time I just divorced the father of my daughter,and my daughter (Janet) was faced with a ” between life and death ” situation ..I was faced with her hospital bills and was also faced with foreclosure at my apartment.Details of the GOD SENT and RELIEVING source won’t be disclosed to you for now, for fear of impersonation ( because it has being discovered that some persons are not really in need of financial help,but are there to impersonate real loan lenders through their phone
numbers and email accounts,and acting to be them where necessary to those in real need)…I couldn’t comment on your post because it was a public place and I fear you would fall into the hand of all these fraudulent loan officers (even in US) like how they ripped me off.You must be able to convince me real hard,and provide good proofs,before I can give you the full details of this legitimate loan officer..Their charge is very affordable and reliable compare to many out there,their interest rates just 2%,little documentation,and little credit check(irrespective of your credit score,but you MUST have a good and liable income source) His Name is MR ANDREW CLINTON, Feel free to email him at his via Email:loanfirms007@gmail.com”and you will be free from scams. thanks as you read the greatest testimony of my life.

Mrs Elizabeth Cohen

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do you need an urgent loan

Compliments of the day
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Richard - 3 weeks ago

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