This Article is About
credit card payments
economic climate
burden of proof
positive attitude
personal relationships
credit unions
finance companies
co signer
credit score
Strategies For Getting Second Chance Loans
Join 1000's of Authors at StreetArticles Today!

Strategies For Getting Second Chance Loans

If you've had a history of serious credit problems such as late credit card payments or bankruptcy, then you are considered a "high risk" when it comes to getting any type of new accounts. Keeping a positive attitude and maintaining patience and flexibility are essential emotional assets when it comes to pursuing credit-challenged or "sub-prime" loans in this economic climate.

First, visit local banks, credit unions and other lenders such as finance companies first to apply for high risk personal loans. Local lenders are more likely to extend riskier loans because if the payments are not made, they can more quickly take court action such as suing you for the bad debt.

Trying to get high risk personal loans or "second chance" loans works best when there is low usage of existing accounts. For example, if you have $30,000 worth of credit card limits, you should strive to use only 20 to 50 percent of this credit, or $6,000 to $15,000. You must also ensure you have no recent late payments or collections accounts, such as medical bills, when applying for high risk personal loans with any lender.

Ask a friend or boss to be a character reference with the bank or credit union when requesting high risk personal loans. Do not use this method if you have any doubt about your ability to repay the loan, because this can damage your personal relationships as well as affect the person's reputation within the banking community.

Do not give up if you really need a loan but cannot get one right away. Adding elements such as collateral and/or a co-signer in most cases can make requests for loans become a reality even if you have a poor .

Remember that failure to repay second chance banking loans can severely damage your credit score and even end up getting your wages garnished to repay the debt.

Never be attacking when having any kind of discussion about your credit score. Use words such as "I" rather than "you" and focus on mutually solving any problems at hand. The burden of proof is on you to show that despite your past credit history you are a good financial risk. You also must have an inner sense of integrity and self-esteem to successfully pursue sub-prime loans and credit card accounts. If you have unusually high emotional stress relating to your finances, consider talking to a credit counselor, life coach, therapist, minister, rabbi or a trusted friend or family members.


Street Talk

No comments present
You May Also Like
Credit Cards A Plenty
Credit card debt has become one of the largest consumer problems in recent times. I know, because after 20 years of credit card use, the debt catch-22 has finally caught up. The banks do not care (to an extent) how much you are in debt, as long as you can…
By: James Lamkin in  Finance  >  Credit Tips   Oct 25, 2012  
4
  Likes: 2

I Dont Want To Budget!
Well neither do I. Keeping track of where my money goes each month is no fun. Heck, making it is hard enough, and now you're telling me I have to spend more of my free time managing it? Yes, you do. Fortunately, once you have spent the time to implement…
By: Scott Oberholser in  Finance  >  Personal Finance   Jul 28, 2011  
0
  Likes: 0

How to Create a Personal Financial Budget
Creating a personal financial budget may not sound like the most pleasant experience in the world. But, you will need to set a personal financial budget to keep your financial house in order. Before you begin creating a personal financial budget, you need to realize that if you must be…
By: Mad Marketer in  Finance  >  Budgeting   Dec 26, 2010  
0
  Likes: 9

Organising A Budget
Creating a budget is the first important step in organizing in your financial life. We cannot overemphasize the importance of a budget for successful financial planning. To start with you have to provide as much financial information as possible. The purpose is to know where your money comes from and…
By: julius ngunjiri in  Finance  >  Budgeting   Nov 24, 2011  
0
  Likes: 0

Internet Marketing 18: Business Ethics And Standards
There are shysters doing business on the Internet. Because of this and the fact that some are not use to doing business on the Internet, web visitors are always suspicious. Even subscribing to a newsletter or requesting a free e-book can lead to a ton of trash in your email…
  Likes: 0

Payday Loan Debt Consolidation Assistance
Before I share with you the help that is available to you if you’re trapped in payday loan debt, I came across some very interesting information. Did you know every year over 12 million people in the United States use payday loans, and a Pew’s survey found that 5.5% percent…
By: Leo E in  Finance  >  Debt Consolidation   Feb 23, 2013  
0
  Likes: 1

How to Get the Best Cash Back Credit Card?
Selecting the best credit card provider is certainly not an easy job. You need to consider a number of important parameters and the fulfillment of each and every parameter will dictate your selection. The key to an effective credit card search process is research. Talk to friends. Talk to acquaintances.…
By: Zara Ali in  Finance  >  Credit Tips   Feb 23, 2016  
0
  Likes: 0

How To Raise Your Credit Score With These Simple But Effective Credit Tips
Many people across the nation share the problem of a negative credit score. Many of those people are seeking easy ways to increase their score so that they can qualify for better rates and bigger loans. This article is full of ways that you can improve your credit score easily.…
By: Darin Sewell in  Finance  >  Credit Tips   Nov 17, 2011  
0
  Likes: 1

How to Effectively Remove Inquiries From Your Credit Report
A lot of people do not know this, but inquiries on a credit report can drastically and negatively affect theirability to get financing. In fact, having just 6 inquiries on your account within a short 6-month period can render you automatically disqualified in the eyes of many modern lenders. Despite…
By: Farrah Graham in  Finance  >  Credit Tips   Oct 30, 2015  
0
  Likes: 0

How To Prevent Bankruptcy
There are many things you have to know about learning how to prevent bankruptcy. All boils down to learning how to prevent bankruptcy if you must be able to manage your finances well. You need to find out if there are some things you need to do so as to…
By: Scott Newman in  Finance  >  Credit Tips   Dec 29, 2010  
0
  Likes: 0

How to Fix And Maintain A Good Credit Score
Getting Out Of Debt Did you know that a simple three-digit number could be that singular factor that could be standing between you and your dream? This could be buying a car, purchasing a home, starting a business, or even something as simple as managing your personal finances. Your chance…
By: Shawn Deny in  Finance  >  Credit Tips   Oct 19, 2015  
0
  Likes: 1

Ways To Improve Your Credit Score
Your credit score, no doubt, is a very useful number that lenders need to know whether or not they will extend credit to you. It also dictates what the interest rate and terms of the credit or loan will be. The lower your score, the less likely you will be…
By: Yvonne Kelsinger in  Finance  >  Credit Tips   Dec 30, 2010  
0
  Likes: 0

Do You Have Bogus Account Payments? A Bad Credit Repair Is Your Answer!
Doing a bad credit repair fix is simple if you know how to try to to it right. Remember that this is often not an overnight process. Discipline and a dose of frugality is the new approach you might take in your life and ought to be practiced by those…
By: Sonny Apollo in  Finance  >  Credit Tips   Feb 02, 2011  
0
  Likes: 0

Some Of These Things Might Leave You In Heavy Debt
It’s very easy for people to become overwhelmed by their credit card debts due to a number of reasons but there’s still a silver lining to this ominous reality. You aren’t alone! Others have faced the same issue; some are able to pay their debt by careful strategizing, not only…
By: Shawn Deny in  Finance  >  Credit Tips   Sep 29, 2015  
0
  Likes: 0

Applying for Credit Cards With No Credit History
If you've never owned a credit card, you are unlikely to have a credit history. Applying for credit cards with no credit history can sometimes be as hard as applying for them with with a bad credit history. It is often the case that credit card providers turn people down…
By: Rose Richards in  Finance  >  Credit Tips   Aug 31, 2011  
0
  Likes: 0

Article Views: 1254    Report this Article