Help with Bad Credit Loans

One of my readers, Bill, had this bit of feedback on our Bad Credit video and set of credit help links:

First, using credit score to base a person’s financial ability is DUMB. More and more companies are doing it for mortgages, insurance, to rent an apartment and even job applications! There are some people who have a credit score of zero because they do not borrow money. This means they would be denied an apartment lease or have higher insurance rates.

Second, there is a huge push for people to feel that the amount of credit extended to them is an indication of net worth. They feel the score from the Fair Issac Corporation gives them a measure of worth that is not there. You have probably seen the commercials where the guy says, “I’m thinking of a number…”

I don’t trust credit agencies. Anybody (or any company) who claims that they’re going to help you with anything related to money is in it to make money FROM you.

The same way the entertainment industry pushes sex to young adults in order to get them to buy more of their products, credit is pushed to middle America as a way to “achieving the life you deserve.” There is a bank commercial where the people daydream in the storefront glass window about what they could be doing. I too had gotten swept up in the hype. I did not understand the mind game that was being played on me and just how much it was affecting me financially.

It was only when I saw a financial debt free live event that my entire outlook on money changed. I began to understand the workings behind the strategies, promotions and offers that were all around me. I was able to look my bank teller in the eye and kindly turn down their offer to loan the money I just deposited, at 3% interest, back to me at an introductory rate of 12% interest for the first three months. Now, anytime I hear the words “loan”, “credit”, “finance”, “interest” or “FICO” I pay attention. I haven’t done it yet but I intend to count how many “loan” commercials I see on TV during any given night.

This is a sad story. Far too many people do not understand credit. Moreover, it’s in the industry’s best interest to keep this kind of information at bay. Managing money isn’t easy, and sometimes it’s up to smart software to help (as recorded by Ponzi in her post about Small Business Accounting Software.

Another thing I woke up to was that, in my experience, many people in the finance community treat information regarding the pitfalls of credit as their own personal secret. I have encountered more than three times a situation where I briefly mention what I have learned and the response is something like, “That is very sound financial advise.” One of these instances was from the very same bank teller mentioned above. My frustration is that more people are not talking about this.

Amen, Bill! Where else can we turn for true credit help?

13 thoughts on “Help with Bad Credit Loans”

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  4. And the collusion between the varius credit companies! It goes something like this; good offer for credit (if only for a brief period — they only vaguely mention that part), you sign up and get their “agreement” (with which you agree to be charged any rate they wish, and agree to any rule they ever make up — Chris, would you sign on the dotted line if one of your home improvement contractors presented you with such an agreement, giving them the right to charge anything they wish and change the terms at any time, for any reason?), the other companies get hold of your information and send you more offers, if you actually USE any of them the rates start to rise and the terms become more onerous (tempting you to consider other options), now you get on the “B” list of crediters who’ll pretend to want to help you manage your credit (but, of course, are only out to INCREASE your debt to their advantage), rates continue to rise, terms become even more onerous (more temptation to accept offers of “help”), if you’re a homeowner your mortgage company will begin to offer to “consolidate” your debt (using your HOME as collateral), the “C” list preys on you by now, and you’re screwed.

    I haven’t got ’em all figured out yet, but they’ve got it down to a science, that’s for sure.

  5. “Where else can we turn for true credit help?”
    I’ll tell you where I found help. I was introduced to Dave Ramsey by my friend Scott. After hearing him a few times on the radio, my wife and I purchased tickets to his Total Money Makeover live event in Houston. I’m not going into details about his life or methodology as you can find it all on Wikipedia. But it was the “talkin’ to” about money that I never received from my parents.

    Needless to say, I shaved my head and drank the cool-aid. We cleaned up our debts. We got on a written budget and started saving money. Now, we actually look forward to walking down the street to get the mail. I know it sounds sappy but, our bank account has never looked better and our marriage has never been stronger and our future has never been brighter.

    Some reading this may not agree with his teachings and that’s OK. But like I said above when I talk about what I have learned with people who work in the financial community they reply, “That is very sound financial advise.”

  6. Seems to me the first step is to realize the “priviledge” of being able to borrow money isn’t real wealth. Second, for real financial advice it’s a good idea to ask someone to whom credit cards and financing everything is an afterthought: someone older, meaning your parents or grandparents, before the credit card even existed in the late sixties. There was a day where people saved money and only bought something when they had the cash to do so, imagine that. While it’s not realistic to expect that for everything, that at least might beat the urge to charge small crap like groceries or dinners out and let the balance fester.

  7. Chris, I hope you appreciate the irony that directly below the post there are 4 google Ads offering large amounts of instant cash to people with bad credit 😉

  8. This post definately struck a chord with me. I personally feel the best help is self help. I monitor my credit and use Life Lock for myself and my son and this has been working for me and I’ve received less juck mail or better yet temptations for credit and a better credit score w/o overextending myself. I too work on a written down budget.

  9. I am one of the poor souls, an Eagle Scout no less, that, due to inactivity of credit cards or loans, has a less-than-par credit score. Basically, all my good credit went away, and the only thing I have on my credit reports is a few lates, caused by unforseen circumstances.

    So with that, I have a score that is around 500. Can I get a loan to pay off my debts, purchase a much-needed automobile, and get my credit back on track? No! Is this pissing me off the more I try to find someone to help me out? YES!

    It’s sad that a good people, such as myself, get reamed up the ass.

  10. Paying off your loan with bad credit is good but people pay loan by taking another loan, which creates burden on them to pay there loan in time.

  11. The internet is a great starting point for searching for the company to do easy personal loans with, and if you’ve got a bad credit rating, relief can be just a click away.The internet has made applying for quick loans easy and you are guaranteed an answer without waiting for days. One such example is payday loans with no credit check, gone are the days of waiting 1, 2, 3 months, like some companies did years ago.

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