For individuals who suffer from bad credit, guaranteed approval loans provide short-term assistance to meet their financial needs. The only factor that can disqualify one from getting a guaranteed loan approval is an on-going or recent bankruptcy. Nevertheless, if the problem is with regards to your low credit score, you can apply for this type of loan as a way to redeem your damaged credit.

Having bad credit can be a huge dilemma especially when it comes to getting a loan. Since lenders want to reassure the credit worthiness of their clients, those with low credit scores can be immediately declined. Yes, bad credit loans do exist in the market, but if you want to stay away from high interest rates, it is a far better option to work on improving your credit score first before applying for a loan. Unless you need the cash in a hurry, rebuilding your credit is definitely the best choice.

In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act was passed and announced to the public. This act requires consumers first take credit counseling before filing for bankruptcy.

A consumer credit counseling agency aims to help those people who have debt problems with their repayment obligations and teach them how to manage their finances more effectively. Many people have trouble with proper budgeting and usually their filing for bankruptcy is a result of uncontrolled spending. Although there are cases where uncontrolled events such as divorce, sickness, or loss of job is the main reason for bankruptcy, ineffective financial management cannot be denied as one reason that contributed to this sad situation.

Why Be Wise In Choosing

Credit counselors should primarily look after their client’s financial improvement. However, the reality is not all credit counseling agencies live up to this obligation. With the emergence of thousands of different credit counseling companies, a huge portion of these are only after their own benefit. In fact, even so-called non-profit organizations may be after their profit after all. Thus, it is important to be wise in choosing your credit counselor.

How to Choose the Right Counselor

Credit cards are convenient means of payments to use. While many bad credit cases was a result of improper credit card use, credit card holders can avoid being in a bad credit situation by using their credit cards the proper way. Below are some tips on how you can use your credit cards correctly without getting caught in bad credit.

Don’t use your credit card on purchases that you can pay in cash. If you do, you may end up buying a lot of things that are really unplanned and out of your budget. As much as possible, pay your daily expenses using your allotted cash for that day.

Purchasing a car is a big investment. It is also an exciting experience especially for first time car buyers. With all the excitement, many car buyers often make wrong decisions because they lack the information and sometimes due to impulsiveness. Here are the top ten money mistakes people commit when buying a car:

1. Buying you’re ideal car.

Cars come in different models and each one has his own “ideal” type of car that he wants to have. But focusing on a single type of car just because it looks amazing isn’t a very a good idea. Instead of just thinking about the look and style of the car, consider your need and lifestyle. Most importantly consider your budget when choosing a car.





2. Not going for a road drive test.

Bad credit loans and guaranteed approval loans abound in the market today. These loans are especially designed for people with bad credit. Since bad credit or a low credit score is unacceptable for standard loan lenders, some people are left with no choice but to apply for a bad credit loan. Although bad credit loan lenders grant approval despite a bad credit rating, these loans often come with high interest rates. If a loan applicant isn’t careful, he or she may end up with a predatory lender.

Many people think that bankruptcy is the end of the road for them. Once they have filed bankruptcy no one will be willing to lend to them again for 7 to 10 years. The truth is, even those with a record of bankruptcy on their credit report still have a chance to qualify for loans and regain a good credit standing. If you’re currently worried about your low credit score, taking in on a new loan or opening a secured credit card can help you bounce back and rebuild your credit.

If you have bad credit or a low credit score, you should be interested to learn about bad credit unsecured loans. When in need of financial aid in a hurry, you can be assured that your loan application can get approved even if you have a poor credit score.

There are bad credit loan lenders that require their applicants to submit collateral for their loan. Homes or cars can be submitted as security for these types of loan. But for some people, submitting their own property as collateral is too risky. There are loan applicants who are unwilling to put their properties on the line.

As the name implies, a bad credit unsecured loan will not require the borrower to submit any form of security. Although unsecured loans often have higher interest rates, some borrowers prefer to take them because they do offer more convenience and flexibility.

Can bad credit unsecured loans help you improve your credit? The good news is, yes, these loans can be part of the tools you use in improving your credit. How? Once you get approved for your loan, make sure that you’ll be able to submit your loan payments on time throughout your loan’s term. The easiest way to do this is to ask them if they will take the payment out automatically from your account each month. Doing so will ensure that your credit score will be slowly, but surely increase. As you prove your credit worthiness as a borrower, your timely payments will be reflected in your credit report. In time, you should be enjoying an excellent credit status if you keep up with your good paying habits.