Instructions
Things You’ll Need:
- Personal identification
- Pay stubs
- Tax information
- Social Security number
- 1
Order a copy of your credit report from each of the three major credit bureaus: Equifax, TransUnion and Experian. You can order a free copy of your credit report from each bureau once per year through AnnualCreditReport.com (see the Resources section).
- 2
Review each credit report carefully and circle any errors that you find. Look for items that are not yours or negative entries that are over seven years old.
- 3
Log on to the website of the credit bureau that reported the incorrect information and complete an online dispute (see the Resources section). The bureau must investigate your dispute and correct or remove inaccurate information, which may increase your credit score.
- 4
Visit the local branch of your bank and request a loan application or access it online at the bank’s website. Complete the application and turn it in to your banker or submit it online. Your bank may make an exception for your credit history if you have established a positive relationship.
- 5
Provide the bank with your documentation. Proof of identification, such as a driver’s license, passport or birth certificate, will be required. You will need to provide your Social Security number for verification purposes. The bank also may request proof of your income and assets, including checking accounts, savings accounts, 401(k) balance or private stock holdings, as well as your debts. Show that you have long-term steady income that will be able to meet the payments of the loan. You will need to provide copies of recent pay stubs or tax statements, if you are self-employed.
- 6
Request and complete a loan application through another financial institution that specializes in helping customers with a bad credit history, if you are unable to secure a personal loan through your bank.
- 7
Apply for a secured loan if the bank denies your unsecured personal loan request. With a secured personal loan, you will provide the bank with a security deposit, typically in the form of a savings account or certificate of deposit (CD), to open the personal loan. If you default on the loan payments, the bank will keep your security deposit as payment.
- 8
Open a savings account or CD with the financial institution offering the secured personal loan. The amount you secure in a savings account or CD typically equals the amount that the bank will offer for your personal loan.
- 9
Read all of the loan documents carefully, once you are approved, and sign the forms to finalize it.
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Your guide is very useful! Due to hard times… many people are in horrible debt, imagine how many people are struggling to get additional help, so using this guide may help to overcome the financial troubles…