Why and How to Avoid Bad Credit Loans

A "bad credit loan" is the one you will be stuck with if your credit report is less than excellent. More specifically, if your credit score is not well above 620 you will be paying a much higher interest rate on your loans than most people. In this article, we will provide you with some common sense advice on how to avoid these high interest loans.

The interest rate you pay on any loan can be tied directly to your credit score. And your credit score is based on your credit history, as compiled by the three major credit reporting bureaus (Experian, TransUnion, and Equifax). The credit bureaus get their information about you from your current and past lenders.

Remember that car loan you defaulted on a couple years ago? Yup - that's in your credit report. And so are those utility bills you were late paying last year.

The best way to start avoiding bad credit loans is to improve your credit. I know that sounds simplistic, but it's true. You should be able to repair your bad credit yourself, for free. Start by requesting copies of your credit reports from the three major credit bureaus. Review the reports for any inaccurate information, and get it removed by contacting the credit bureaus.

Start paying down your debt. Reduce the balance on your credit cards as much as possible. Negotiate payment terms with your lenders, if necessary. And be careful to pay all your monthly bill on-time, from now on. Just one late-pay can ruin all your efforts.

Add good credit references to your credit report. There are a couple ways you can have positive information submitted to the credit bureaus, even if you cannot get a regular, unsecured credit card. One way is through the use of sub-prime merchandise cards. Although they are not a VISA or MasterCard, they do report to the credit bureaus.

Another option for adding credit reference is to obtain a secured credit card. They typically require a cash deposit, and then you can charge up to the amount of the deposit. Be sure to shop around for these cards, since some have lower fees than others.

Arm yourself with the right information. There are many sources of tips and techniques for improving your credit (and therefore avoiding bad credit loans). But some techniques are shaky at best (and may even be illegal). There is no shortage of companies eager to sell you an instant solution for your credit problems. Take the time to locate an information source you can trust. For example, when choosing a credit repair manual, look for a publisher with a long track record of success, one who updates their information frequently, and offers a money-back guarantee.

Apply these common sense techniques to repairing your shaky finances, and you may never have to visit the "pay-day loan store" again. You should know that it will take time, but if you start today to fix your credit, you should be able to get a lower interest rate on that new car loan later this year.

The "CREDIT SECRETS BIBLE" has been in
print since 1994 and is published by
Consumer Publishing Group.
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CREDIT SECRETS BIBLE
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NEGATIVE ADVERTISING IS NOT THE ANSWER.

Negative ad campaigns are counter-productive, annoying, and petty. As a new US citizen, I was so excited to vote in my first Presidential election. I listened carefully to the nominees who set out their objectives and made it appear that they were now working for the common man - at last.

Unfortunately, that did not last long. As an outsider looking in, it is sad to see attitudes change when the bar is raised.

John McCain had the admiration of most Americans for his sensible and bi-partisan solutions to problems facing American today. His willingness to work with Democrats on issues that affect the daily lives of people today was admirable.

What changed when he became a nominee for President? Why has the race for President become a mean-spirited, character-bashing negative-advertising campaign?

There is nothing worse than negativity.

A point to illustrate this is when my aunt asked me for a glass of water with which to take her pills. I filled it half-way, because that is all she needed, and anyway, her hands shake and she spills often!

When I gave her the glass, she remarked "Why is it half empty?"

"Why?" I replied. "It is half full!"

Life is a series of perceptions. If you are constantly looking for ways that a project will NOT work, why don't you use that energy to figure out a way that it WILL work??

Politicians unfortunately are so busy protecting their "positions" that they forget that they should be working for the greater good of the constituents who put them in office. Most times issues are not a Republican or a Democrat issue, but one that should be worked out in the best interests of the common man. Or woman.

I have the same issues with negative advertising in all walks of life. Car ads, tv connection ads, getting rid of gas ads... you get the message! Ad agencies are not earning their fees if they can't figure out a way to present their products in a positive and different way to the competition. It is not good enough telling me why Product X is worse than Product Y, without giving me a positive reason and advantage of buying Y in the first place. Don't tell me why another product is bad. Tell me what is good about the product that you are trying to sell.