Bad Credit Personal Loans

Written by Ingrid Chen
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If you have bad credit, you may think that you can never get a loan. This isn't true. You'll probably be looking at higher interest rates, though. In some cases, you might not be approved for the entire amount you were looking for, but you should still be able to get something. This is especially true if you are part of the military and are applying for a military loan.

When you apply for a military loan, you will have to provide your lender with some extra documents. They require that you give a copy of your ETS and LES. These are all your documents concerning when you end your military service, as well as your deductions and allotments. Along with these, your lender will look at your credit history. This is to see what current debts you have, the amount of your payments and whether you have ever missed any payments.

Planning for Your Loan

If you already have bad credit, you can use your personal loan to help increase your credit score. You can do this by making sure that all of your payments are on time. In addition, it helps to pay a little more than what is required each month. This will also help you pay the loan off faster, thus decreasing your interest payments.

In order to use the loan to help your credit score, you will need to do a little financial planning. Sit down and write out all your sources of income and all your expenses. Include things like dining out, bills, mortgage payments, purchasing clothes and books and even paid parking. Then, see what you can start to cut out in order to make your payments on time. In addition, start putting some of that money in a savings account--a good guideline is to save ten percent of your annual income.

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