Yes, I Got a Loan (Even with My Terrible Credit)- Here’s How!
The joy of being financially independent is unparalleled! Making a living on your own is a new and exciting experience that makes you feel proud.
I still remember that feeling. I thoroughly enjoyed my financial independence right after I got my first job. I was free to spend money as I wished, buy a flashy car, and buy all the things that my heart desired.
That was until last year when things took a turn for the worse. My spending habits left me and my credit score poorer. With no money and no one to count on, I was in serious financial trouble. So much so, that I had to resort to a bad credit loan.
Did I get a loan? Yes.
How?
Read on to learn about my experience.
Entering the Vortex of Financial Mess
Incessant spending, missed payments, and maxed-out credit cards had put an irreversible dent in my financial health. My reckless spending habits were costing me dearly. After the initial novelty of joining a job, I was no longer enjoying my financial freedom, but working to ease the pressure of the financial burden I was grappling with.
While I was working hard to turn my situation around, my car’s engine decided to die. A quick consult with the garage confirmed my worst suspicions – A whopping £600 to get my car fixed!
Now I was staring at another problem: How do I get to work without a car? I had no money, no savings, and nowhere to go. Cash-strapped and nowhere to turn to, I had no choice but to apply for a loan.
The Breaking Point
My poor credit score of 550 stared back at me with a look of shame. If I were to take a loan now, I would be considered to be in the “high risk” category of lenders. Banks stay clear of those in this category because they’re certain they’ll not get their money back.
There I was, sitting on my couch, staring at a huge pile of overdue bills. I couldn’t help but feel overwhelmed. I had a steady job, but my monthly paycheck barely met my monthly expenses. I was open to the idea of working part-time to increase my income, but it was tough with no car to travel.
Now I was desperate. But instead of wallowing in self-pity, I started frantically researching options that offered money to those with bad credit scores. I came across bad credit loans.
Research and Search for a Way Out
During my online research, I came across multiple options that offered loans even to those with poor credit scores. This was a flicker of hope for me. I spend countless hours after work intensely researching bad credit loans. I browsed through the websites of multiple lenders and went through their schemes with a fine-toothed comb. I read reviews and checked recommendations from existing customers.
My research narrowed down to a few lenders that specialised in loans for the likes of me. They boasted of quick approval and disbursal, but I took it with a grain of salt. I had heard spine-chilling stories of intimidating lenders taking undue advantage of their borrowers. I had to stay clear of them. I knew I was desperate, but I couldn’t afford to be foolish.
After studying their offerings meticulously, I shortlisted some reputable lenders with good, genuine reviews and clear loan terms. I picked one of them and completed the application process.
Glimmer of Hope?
The application process was uncomplicated and only required a few documents. Within 24 hours, I received an approval. I wouldn’t lie; that certainly got my hopes up!
I was in two minds while reading the offer email. Unlike bank loans, the interest rates on these loans were pretty steep. If I accepted, it would mount more pressure on my finances, pushing me deeper into the vortex I had created for myself.
As they say, desperate times call for desperate measures. I had to weigh my options, and quickly. After comprehending all the risks associated and how vital it was to fix my car, I decided to go ahead with the loan.
I knew it was not the best course of action, but it gave me some hope and fueled my determination to turn things around.
Back in the Driver’s Seat
It wouldn’t have been my first choice, but the bad credit loan gave me a shot at fixing my financial conundrum. The disbursal was quick and effortless. With enough to cover the costs of repairing my car, I was positive to get back on the proverbial horse.
In addition to paying back the loan, I made tough choices that were difficult to digest but were the need of the hour. I cut down on unnecessary spending like eating out, binge drinking and partying. After my car was back on the road, I took up side gigs on the weekends, where I’d tutor college students or coach them in cricket. It wasn’t much, but it certainly added up.
The future was not too bleak now, because I was rebuilding my credit one step at a time.
In Hindsight
Today when I revisit my experience, I can’t help but smile. Countless times I wished I had a Time-Turner to turn back time and never be in this harrowing situation in the first place. Alas! Life never turns out the way we want it to. Not to sound too philosophical, but there’s always a silver lining to any arduous experience in life.
What I gained from this experience is a life lesson: be more careful with my money and how I spend each penny of it. It taught me that my reckless spending behaviour led me to this situation and I cannot take my personal finances for granted. I am still paying off some debt, but the situation is not as grim as it was last year. Bad credit does not have to be an endless vortex with no way out; it’s a challenge you must overcome by seeking the right option.
Just like I did!