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Saturday, February 28, 2009

Personal Loans For Bad Credit

By Kevin Davidson

Unfortunately your situation is not original. Everyday thousands of other people lose their jobs and miss debt payments or do not get laid off and still miss payments messing up their credit scores. This of course forces them to apply for a bad credit personal loan when they inevitably need a loan for a business, car, home, etc.

This is no surprise since no one tries to teach us about personal finance or the all encompassing credit score. You go to college and get inundated with hundred of credit card applications and you think hey here is some free money. Unfortunately the money is anything but free. Of course you don't learn that until it is too late.

In fact as you spent away the money buying food, designer jeans, and other forms of entertainment you were also missing the occasional payment and have now defaulted on at least one card. This causes major damage to your credit history and makes it so that the only loans you can get are bad credit personal loans.

If this is all you can get then there is still no need to worry. Settle down and read the rest of this. Go get all of your credit card statements and go through them with a fine toothed comb. Now go and apply for a credit history report.

Now that you have all of the info in front of you look for errors or small debts that are easily repaid. Many experts recommend starting with the smallest debt and paying them all off from smallest to largest but keeping the payment amount constant. But we are hoping that you can fix most of it quickly.

Now go through and pay any small debts that you can. You may have two hundred dollars at thirty percent interest. Pay that off and move to the next debt and so on. After a while you will have paid off all of your high interest debt and you can focus on what is usually the biggest but lowest charging debt.

These little steps alone can often times fix your whole problem and allow you to get something other then a bad credit personal loan. This way you can get a loan without really high interest payments.

Of course if you still have a bad credit score then you can apply for a bad credit personal loan and you will be able to get at least some of the money you need. Going forward it is important that you realize that your credit history is important and that messing it up can and will cost you a lot of money and future opportunities.

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