Bad Credit Loan -- How to Get the Best Interest Rate
Written by: Jim Eastman
Bad credit loans
are in high demand. And if you do any research on "bad credit loan",
you'll find plenty of advice on how to get the lowest interest
rate. You'll also find plenty of people willing to give you a bad credit loan, but
you'd be making a mistake to accept it.
Unfortunately, most of what you'll find approaches the problem
from the wrong direction. The way to get the VERY best interest
rate on a bad credit
loan is usually overlooked or concealed altogether.
But before we continue, let's digress briefly and look at how
significantly the higher rate for a bad credit loan
affects the borrower.
Let's say you want to buy a house, but have bad credit. No matter
how diligently you shop for a lender, you're still be charged a
higher interest rate for a bad credit loan than
if you had good credit.
With good credit, you might get a mortgage loan at 6% interest.
But a bad credit
loan will cost you closer to 12%. Assuming you get a
$100,000 mortgage over 30 years, the difference you'd pay in
interest amounts to a monstrous $154,461.60 MORE because you
have bad credit.
That's over 1Ĺ times the loan itself!
Now getting back to our original problem, how can you get a
better interest rate for a bad credit loan? The
answer is probably not what you were expecting.
The solution is to "think outside the box." The way to get a bad credit loan with
the best interest rate is to NOT get one! Instead, spend a
couple of months fixing your bad credit, and then
look for a "good credit loan" instead.
This answer probably comes as something of a shock to you. More
than likely, several objections to this approach will come to
1. "I need a loan NOW" or "It's not worth my while to wait
until I repair my credit."
Oh really? Well, is it worth a savings of $150,000 or more?
Granted you may not be looking for a $100,000 loan. But even if
you want to borrow only $10,000 or so, the better rates you'll
enjoy with good credit will still save you several thousand
2. "Fixing my credit will take too long, or it just isn't
It's often possible to make very a significant improvement in
your credit rating in just a few months, and in some cases as
little as 30 days.
3. "I don't know how to repair my credit and can't afford to
hire a credit repair agency"
For a fraction of the cost of a professional agency, you can
purchase a good book on credit repair that will walk you through
the whole process.
4. "Do-it-yourself credit repair is too difficult" or "I don't
think I can repair my own credit"
Don't be intimidated by the idea of fixing your own credit. If
you can write a few letters, address, stamp, and mail them you
can repair your own credit.
Your decision comes down to this; you have two choices.
1. You can spend some time (maybe a LOT of time) shopping for a
bad credit loan
with the lowest possible rate, and still end up paying thousands
(even tens of thousands) more in interest.
2. You can spend some time fixing your credit and spend those
thousands on your family's needs, instead of paying them to your
Do you really think your lender needs your hard earned money
more than you and your family need it? Anybody can work on
fixing their own credit. That's right, anybody!
Get a good book on credit repair and get started TODAY!
(c) eBusiness Power
About the author:
Jim Eastman is the support contact for http://www.ErasingBadCredi
t.com. People wanting to repair their credit rather than pay
thousands too much for a bad credit loan, can
visit the site and sign up for a free mini-coures on credit
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