Obtain a copy of your credit report!
Your credit history is reported differently by all three major bureaus. Therefore, it is a strong possibility that there is information listed that is either inaccurate or not up-to-date. In fact, a recent report by the U.S. Public Interest Research Groups indicated that over 75% of credit reports have some type of erroneous information present, some impacting enough to jeopardize loan approval.

Reviewing your 3-in-1 credit report will allow you to spot all inaccuracies and take the appropriate steps for removing them. This entails writing a dispute letter to your creditor as well as the reporting agency. If you locate information that is not up-to-date, contact your creditor and request for your information to be made current. Learn more about correcting credit reports.

Do some caparison loan shopping!
Contact some local banks and determine what their terms and interest rates are. Conclude if interest rates are fixed or variable. If they are variable, determine what the rate cap is. In addition, make sure you ask if there is an annual fee associated with the loans. Nowadays, there are also a variety of online loan providers. Internet companies like Choice Personal Loans offer a variety of good and bad credit unsecured loan programs. They will custom tailor a loan package that is specific for your needs without breaking your wallet.

If you are a member of a credit union, it would be a good idea to get in touch with them as well for your financing. It is very possible that you can obtain an affordable low rate loan from your union.

Ask questions! Disclose your needs and intents!
Once you narrow your research down to a few potential lenders, you should contact each of them. Explain your situation and what you intend on using your loan for. This will particularly be advantageous for individuals with bad credit histories. Many lenders understand that poor credit is often a result of situations beyond the control of the beholder. Permitting any potential lender to comprehend the causes of your bad credit will help portray what kind of person you are on a personal level, and not as reflected by your credit score.

It is also very good idea to be as informative as possible when revealing the purpose of your financing request. It is possible that you will be provided with a loan alternative. For example, if you are looking to utilize an unsecured personal loan for purchasing a boat, you may be able to use the boat as collateral. Securing your loan in this way will also result in a lower interest rate, equating to you saving money over the life of the loan. However, it is important to note that if you neglect to pay your loan, you run the risk of having your boat repossessed.

If you have poor credit or no credit…try and locate a co-signer!
Encompassing a cosigner with a good credit history will likely increase the probability of obtaining an approval.

More advice to consider….
Filling out multiple applications all over the Internet is a very bad idea for two main reasons. One being that every time you are declined for a loan, you credit score is lowered. The other, submitting loan requests with multiple sources is a sign of desperation and will severely hurt your chances for approval.

As an investor, I frequently look at things from the contrarian perspective (or maybe I’m just disagreeable.) So when I was considering what to post as a guest blogger on the home of the Festival of Frugality, I thought maybe a contrary perspective on the frugal life might be in order.

Don’t get me wrong – I’m all for being thrifty. In fact, I think “Live well within your means” is an excellent motto. It can be read two different ways – live well, but within your means or live well (far) within your means. If you strike the right balance between those two ways of looking at it you will be happy and, eventually, wealthy.

So my contrarian perspective on frugality is that I don’t think some people are doing the cost-benefit analysis. You know the ones I am talking about – they spend three hours combing through the coupons in the Sunday paper to save $10 on their groceries, when they could have made $25 or more by working those three hours instead. Taking a second job or working more hours at your primary job benefits your finances in two ways:

1. You earn money
2. You are too busy to spend it

You can’t get more frugal than that – 100 percent savings rate on your extra time. Even if you work in a salaried job (and thus don’t get paid extra today for the extra hours you work) in the long run hard work will pay off. When the next promotion becomes available, the conversation will go something like this:

Your Boss: “I think we should promote (your name.) (S - Annual Report)he is always working long hours.”
Big Boss: “What about Fred?”
Your Boss: “He is always trying to catch the early bird special at El Burro Barato.”
So don’t be Fred. Stay frugal, but make sure the time you spend doing it doesn’t have a more productive use.