Tips On How To Fix Bad Loan Credit

September 7, 2010 by  
Filed under Credit Basics, Free Debt & Credit Tips

Having bad loan credit is nothing to make light of nor should you let this problem linger.  There is nothing more embarrassing than being turned down for a loan. You have your hopes up when you walk into a bank and within minutes, your dreams of a new house or car are gone. Most of us have had bad credit at one time or another and if you haven’t, consider yourself lucky. With today’s economy, it gets harder and harder for us to make ends meet. If you are one of the many that have bad loan credit remember, it’s not too late to fix it.

You can start by finding out why you didn’t get the loan in the first place. You can ask the lender the reason you were turned down, and request any suggestions they may have for you regarding  how you can begin to fix your bad loan credit. You can also inquire as to any insights they may have for any specific actions you should be taking in your immediate future so this does not continue to hold you back as you work to rectify this situation. Keep in mind, that no matter what they may tell you, or any suggestions they may give you on how to fix your bad loan credit, there will be certain things you must do on your own so please be prepared.

The first step you need to do is immediately request a copy of your credit report. Since your application was denied due to having bad loan credit, there will be no charge for this.  Upon receiving your report, there will be some very specific actions you will need to do if your going to fix your bad loan credit and begin to get your credit rating back in order.

When you have your report, go through it very carefully noting any mistakes (creditors listed you don’t owe), omissions (anything not listed on your report that could potentially help your score), and any creditors you do in fact owe and need to make payment arrangements with. Once this is completed, contact all necessary parties so that all issues get taken care of. If this step can not be done solely by you, then begin researching for outside help (a good credit service  company can provide this for you).

Next it’s time to show the world that you are indeed in charge of your finances once again. You can do this by simply putting together a well organized, extremely thought out budget plan that can easily be read and understood by anyone who you should happen to show it to.

Now go back to your lender who previously turned you down because of your bad loan credit with all your accomplishments. Even though your credit issues have not yet been fully put behind you, that’s OK. Go over in detail with them the results of your findings with your credit report whether its good, bad or ugly. Let them know of any mistakes that were corrected in your favor, of any omissions that have since been added, and any creditors that you have made payment arrangements with in order for you to fulfill  obligations  that you may have with them.

Now you can show them your budget that you have prepared. What this will do is prove to them that yes, you may have had bad loan credit when you entered into there establishment, but your sure as heck not going to leave there with it. Not only will you have proved that you are indeed serious about fixing and repairing your bad loan credit once and for all, but you are as credit worthy as the next person and do deserve that loan you were looking for.

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