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After finally getting my credit cleaned up I find myself still getting refused by major banks for a small business loan. I understand where they are coming from and it leads to my next question.
Can anyone suggest a place that will do something like this.
Small business loan for $5000
Pay back $500 per month ( $400 to the debt and $100 interest )
Have you thought about a credit card?
You might find one that has a zero interest or very low interest introductory rate, and if you throw 500 per month at the bill, you would nearly have it paid off in a year....
...and even if the interest free period was only 6 months....you would do ok.....
Rick
Universal4
Perhaps find someone that trusts you, with an ok credit history that can get it for you, but you will be paying it. Otherwise in this financial situation I doubt you can 'convince' any bank to go out of their way and make an exception.
I think b4 a bank or a CC will loan you 5k after cleaning up your credit .May take a few years and also they may risk a much smaller amount . Is it possible to find a co signer as they will gaurantee the note even thou you will be paying it!
A lot of the decisions about which direction to go is based more upon your actual score now since that is what will dictate what kind of percentage you are offered, as well as how easy it would be to close a loan deal now.
I suggested the new CC since that is usually one of the first areas where you will be able to tap funds once cleaning up a previous credit issues etc...
If you happen to get offered one that is attractive, and yet the interest free or low percentage is only tied in a blance transfer, an option is to use the transfer to pay down a different card (such as one you use for household purchases) and then hitting the current card for a cash advance (careful as you might pay 2%-3% or so for this)...in this situation you would want to make the larger monthly payments to the card you pulled the advance on (since the new card has no or low interest during the promotion period)....
If you do manage to pull off getting a new CC, the fact of carrying a balance on them and making the payments on time for a while will also help raise your score...(once the debt to available ratio is in a more manageable state)
I agree that going the CC route is not always the best direction, but there are times that it might be one of the only available options....
I also agree that a personal loan from a friend or colleague is attractive but not always as easy to pull off....
Rick
Universal4
Chris I started my career 26 years ago at BMO loans and Mortgages.First step to rebuild credit is to get a Capital One Credit card,Use it and pay it off in full for 6 months.While that is happening build your relationship with your bank , keep one bank account and keep it clean no bounced checks etc.As for business loan you can forget that until you have minimum two years of business income taxes filed and even then they will make you be a personal guarantor.Go into the bank and get to know the staff ,start a rsp even $25 a month just so they know you exist after that ask your bank to give you a low interest credit card .Apply in person to your branch for credit ,they have the ability to make decisions up to $5000 .If your bank declined you ask them what you need to do to get it approved.Proof of income is #1 criteria and believe it or not a union job at a grocery store making minimum wages will mean more to the bank than self employed making $50,000 a year .
I second the Capital One recommendation.....
Many years ago after having a bit of a credit fiasco myself I went to Capital One, and to this day I still have one account with them....they do not give me the best interst rate I have, but I have always been able to work out issues with their customer support, and I have a soft spot for them since at one time they were the only ones willing to work with me years ago....
Rick
Universal4
All very good advice. I started with the capital One credit card about a year ago. My credit was damaged on my own dumb choices but I did not claim bankruptcy and just slowly paid them off. I have 2 pretty good banks that have clean accounts ( except when the damn gas bill comes out early !! ) The problem is that in order to make money in the affiliate business you have to put a lot of hours. I make okay money but am trying to continue rather than go work at the local bar or whatever.
Maybe it's time to sell and go work in the real world. At least for a little while.