Fresh Start Loans For Bad Credit Applicants: A New BeginningPosted by Nick Niesen on November 8th, 2010 Having a poor credit history and a low credit score is something which is often hidden because it is looked at as something bad or shameful. Is it a sin to have bad credit? Of course not! And if you feel bad because you are going through a rough patch, you should think twice. Anyone can fall on hard times, it does not define you as a person. It just means you made some bad financial decisions and, what is more, it should be looked at as something to learn from.
People who have a low credit score (below 600 is considered low) will often have a hard time obtaining finance due to the fact that they represent a high risk for any lender. But this is not always so, a bad credit applicant can be a homeowner and have a high salary, however, a bankruptcy claim may appear on their records, which instantly makes them a high risk applicant. It often occurs that individuals in need of finance apply with a wide variety of lenders and, once the lenders access their credit reports, inquires are performed. These inquires only contribute to the credit score dropping even lower. It is a vicious circle. Fresh start loans carry very few requirements due to the fact that they are mostly consumed by bad credit people. They will become a breath of fresh air for those who had a hard time qualifying for any other loan.
This loan will also be helpful for those with no credit history as it will assist them in creating one. As you can see, this type of loan can be extremely helpful, all there is left to do is to find the right lender. Good luck! Like it? Share it!More by this author |