Poor Credit Report

November 24th, 2009 at 04:51pm Under Credit Reports

Question:
Where could someone get a modest loan with a poor credit report?

Answers:
What type of loan would you like?
If you want to purchase a home, do it. I am in the works of buying my first house. I did not think I would ever do this because of my poor credit report, but there are services out there that you qualify for, you just need to locate a lender that is willing to work for you.
Buying a house would help you pay off debt, since you get equity, and you may defer any taxes.
An additional thing you can do to pay back your debt is to claim additional dependents on your W4 form through your workplace. You get approximately $200 to $250 or more each month, and you may use that toward your regular monthly payment on your outstanding debt, and it is completely legal.
If you would like a debt consolidation loan, I would suggest closing all of your unsecured debt accounts (i.e.: credit cards) and never spend on them any longer. Inform the credit card company you plan to pay this off, and at times they will either decrease your interest rate, or negotiate a settlement with you. As soon as the account is paid for, report it to equifax and they will alter your poor credit report, and do not ever get another credit card because they are a bad idea.
Your existing bank might work with you on obtaining a debt consolidation loan, and if you own any assets to use as collateral, for example, a car that you have paid for, or your house that has equity, you can get the debt consolidation loan with your home or your vehicle as collateral. This means that if you happen to ever default on your loan, they can use the house or vehicle to pay off the loan (so do not ever default on any debt consolidation loan).
I am by no means a banker, I’m just talking from personal experience, so to be certain of what you have to do, set up a meeting with one of your bank’s financial advisers, or go to their website for free financial suggestions.

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