Bad Credit Loans :: News

If you’re in need of bad credit loans, then it might seem like a mysterious application process.  If the lender doesn’t take your credit score into account, then what do they use to determine your worthiness for a loans?

Relax – it’s nothing major.  If you’re applying for a loans that don’t require collateral, then the only things you need to show your potential lender are the following:

•    Proof of a steady income.  It doesn’t matter how low your credit score is – if you have a steady source of income (in some cases benefits are accepted), then you’ve already proven to your lender that you can repay the loan.  Usually you’ll only need a paycheck stub or a couple of bank statements to meet this requirement.

•    Proof of residence.  Again, lenders want to see that you’re established and stable – and this usually translates to providing proof of residence.  If you rent, your lease will suffice; if you own your own home, proof of your mortgage works as well.  If you’re living with family or friends, have the homeowner or leaseholder draft up a rental agreement, as lenders will typically accept this. Alternatively, a utility bill can also be used as proof of address.

•    Proof of a bank/checking account. Your bank account isn’t just a place to cash your paychecks; it can also be proof of your financial responsibility!  Many people with rock-bottom credit can’t get a checking account, so having one will prove to a potential lender that you’re still a financially responsible consumer.

•    Proof of your age.  This is the easiest one of all.  You simply need to prove that you’re 18 years or over, which you can do with a government ID card, birth certificate and/or passport

The more information you can provide a potential lender, the greater your chances of getting approved for bad credit loans.  Print out a few months’ worth of bank statements, grab a few payment stubs and find anything else that demonstrates you’re in a stable residence with a stable income.

You’ll be approved for those bad credit loans in no time!