One step that sound financial counselors give to people with bad credit scores is to secure a long-term installment loan. Even if you are not determined to rebuild your credit rating but simply need a long-term loan to achieve certain goals, do not apply before you try the steps described below.
Yes, if you have poor credit, it will be difficult to get an installment loan. Improve your chances by paying heed to this advice:
Improve Chances for a Long-Term Loan
Your chances of snagging installment loans will increase dramatically if you can speak face to face with someone who knows you, at least a little bit. Have you made friends at the local bank? At your credit union? Do you have any friends or social acquaintances who work in banks? Personal connections come into play strongly here. Someone has to believe in you despite your bad credit score.
After you have indentified the person with authority in a bank or credit union that will be most favorably disposed towards you, make an appointment to explain why you need an installment loan and how you see that loan working towards the repair of your poor credit rating. Show some evidence of change in your ways with money as you make your case. Do not be disappointed if you are only granted a secured loan — take it!
If you have no personal contacts within any bank or credit union, you can always go the anonymous route on the Internet. It’s a sure thing that you can find lenders willing to give long-term installment loans to people with bad credit, but can you live with the terms and fees? Do a bit of research online to find these lenders for people with poor credit. Some sites match people with poor credit to lenders that are willing to work with them.
As you sift through the offers for long-term loans (which usually means that you will have four or more years to repay the funds), pare down your list according to interest rates and service fees. Keep a close eye on the fees in particular. Some companies might offer a reasonable interest rate but will make lots of money off exorbitant service fees that are not well described. Read the fine print carefully or get a friend with financial know-how to take a quick look at your offers.
If you cannot find a long-term loan through the channels above, consider a humble plea to your employer. If you have been with a certain company for a decent length of time, it might be well-disposed to give you a loan. Perhaps your boss has seen you work hard and faithfully for years at your job. S/he might not be too concerned with your credit score and perhaps can pull a few strings and get you the funds that you need. You could even have part of your paycheck debited each pay term to repay the loan.