Whether you need financing for a home, auto or home repair, obtaining a loan may seem
like an impossible task given the economic climate and recent financial downgrading. Bad credit
does not necessarily mean you are a high credit risk, as time has shown people with good intentions
fall on desperate times when losing a job, or unforeseen money holes seek to swallow all your liquid
To make yourself a better risk to banks, provide proof that not only can you pay the loan back, but you will not default on payments. Showing proof of making payments such as your utility bills, or having a stable job, can help lenders decide if they should give you a loan.
Having a bankruptcy or foreclosure on your record normally does not help your case in securing a loan, yet building up your credit score will help. Secure a credit card with a low limit, and pay it off each month to show creditors you can make payments without being late or defaulting on the loan.
When looking for an auto loan, lenders have you fill out a loan application showing proof of employment, and a listing of other loans or debt and assets. This provides the lender with information to determine if you are a good credit risk.
Creditors are not as generous at giving outloans for those with poor credit scores as they once were. There was a time that regardless of your credit background you could get a loan, but those times are long gone.
Work with reputable financial institutions who understand the stress you are under, and who will work with you on short term loans and loan funding. But most importantly, don't live above your means. Create a budget and stick with it, don't get in over your head and that way when you do need a loan, you know you can afford it.