If you have a poor financial history then
after obtaining personal loans bad credit may be erased and your rating will
improve. Small loans are great to apply for if you are in need of an urgent
source of cash. Emergencies are never predictable. Even psychics cannot
accurately predict a misfortune. When an emergency occurs, it does not care if
you have great credit or bad.
If you have a good financial history then you
are in a better position to get the loan once you apply for it. But if you have
bad credit, then you will find out that most of the lenders will be unwilling
to lend you the money you need and those that will be willing to lend you that
money will charge very high interest rates. That is why you as the borrower
have to do all you can to find a lender that has the ability and is very much
willing to lend you the money.
A lot of people who have bad credit fear going
to the lenders simply because they think that the lenders will deny them the
loan without even considering their application. When you apply for a loan, the
lender will go through your application and they will consider all factors. If
they feel that by lending you the money you will be a financial risk to the
lender, then they might increase the rates so as to discourage you from applying
for the loan in the first place. But, if you can prove to them that you are
willing to start all over again and rebuild your credit history from scratch,
then the lender might be in a position to help you out by lending you the money
that you need.
There are very many situations that may
require urgent money. One of the most common is the death of a family member
during the middle of the month. At this time some people have barely enough
money to buy their groceries let alone pay for burial expenses. That is why
many opt to apply for an advance. Another situation that may require urgent
money is the birth of a new born baby. Kids generally come with numerous
expenses and if you had not prepared for the birth of the child adequately you
will find yourself applying for a loan possibly to meet some of the expenses.
If you find yourself in any of these situations, the best thing to do is simply
approach the lender with all the relevant documents. If you have poor credit
then looking for a co-signor with a great credit history greatly increases your
chances of getting the advance.