Tallahassee FL
Fair To Bad Credit Loans

Bad Credit Loan in Tallahassee FL

Bill is having a difficult time trying to figure out why his credit is so bad. He found out the hard way when he applied for a loan and was informed that his credit score put him in the bad credit area.

The lender he was speaking with could not approve a loan for him based on his credit score and his credit history.

Bill needs a loan to pay off his credit cards, catch up on his utility payments and pay his rent. He missed several payments when he had an accident at work and was laid off.

With no health insurance and no support from his employer, he had to find another job as soon as he recovered. All of this left him owing approximately $9500 and a bad credit rating.

As soon as he missed payments, the folks he owed money to reported him to credit agencies and his credit score began to drop.

He also applied for several new credit cards which were declined. But each time he applied, this application initiated a hard enquiry and his credit score was docked again.

Many consumers are not aware of this little known fact. Each time there is an enquiry to a credit rating agency, you lose points on your credit score, because it indicates that you are potentially taking on more debt.

He has a job now and is slowly catching up. But he knows if he can borrow this money, pay off his debts, he will actually be ahead since he will pay less interest charges.

His credit card balances are actually costing him 20% interest on the unpaid balance.

A $9500 loan with an five-year term and 9.9% interest rate for Bill would cost him the following per month:

• Loan Amount (principal) = $9500
• Interest Rate = 9.9%
• Term Length = 5 year
• Monthly Payment = $201.38
• Total Paid Back = $12082.79
• Total Interest = $2582.79

Bill considers himself lucky to be approved for a loan at what many would consider a high interest rate in today’s low interest environment. With his bad credit score he is paying a penalty for the perceived high risk that lenders view him to present.

This is quite typical. If lenders are willing to lend money to someone with a bad credit score, they will often demand higher interest rates to protect their investments.

Bill was able to get caught up on his overdue utility bills, rent payments and his credit card debt. With the low single payment of $201 a month, he will repay the loan in five years time and he will be well on the way to improving his credit score as long as he does not miss any payments.

He should maintain a minimum balance on his credit cards to avoid any further negative impacts on his credit.

Bill is still upset at his old employer for not supporting him at all when he had an accident at work. In fact, he is looking into whether he can sue for any compensation for the time lost on his job and other damages.

He has kept good records of what happened and also his expenses. He has nothing to lose at this point and could gain some financial support.

If you live in Tallahassee FL and you need a loan regardless of a bad credit rating we hope our website helps you in some way.