Can Bad Credit Applicants Really Find a New Home In Social Lending

Bad credit is something that feels like it follows you forever. Even when you think that you’re past it, it always feels like there’s someone that mentions it. Of course, if you’re still applying for traditional lines of credit you may find that you are getting rejected more than approved. That can be hard, when all you really want to do is prove yourself all over again.

You know how you got into a bit of trouble with debt in the first place, and you don’t want to repast those mistakes. That’s a very noble mission, but you will find out the hard way that not everyone will believe you. The big banks will see you most often as a number, and not one that lines up with what they need to accomplish. They are more focused on “sure bets” that will pay their loans every month without fail. The current credit rating system is designed to reward people for doing this by keeping them in “creditworthy” status. But what does that mean for the rest of us? Could it mean that you’re frozen out of getting credit?

The good news that you need to hear right now is that you do not have to avoid getting credit if you honestly feel that you need it. You just have to look at a different avenue to get your credit from.

The world of social lending is the perfect alternative to the big banks because it’s regular people. You can explain exactly how you got into debt, and they will make sure that they take care of your needs eventually. As long as you have a good proposal, you have the same chances as anyone else when it comes to getting the money you need.

Bad credit is not something that has to stick around forever. If you haven’t thought about it already, you may want to use social lending to get a consolidation loan that’s a lot less than the interest you’re paying on all of debts. Of course, since every situation is different don’t forget to use a calculator and really see how much you’re paying. You can definitely save money if you pull off the consolidation loan.

Doing it this way has another benefit — you’ll earn reputation on the site. If you’re someone that pays their bills on time, your reputation score will only increase. This means that more lenders will be ready to take a chance on you and help you get where you need to go.

It cannot be stressed enough — make sure that you really do take your time with the proposal. You want to have the lenders really get to know who you are and what you’re after, rather than just assuming you’re just another number.

Good luck with your first proposal — it really isn’t as bad as you think, and your less than perfect credit rating may not hold you back as much as you imagine it will. The only way to find out is to just try! Good luck!