I remember years ago when I stepped into our local, hometown bank to get my first loan. I remember sitting in front of the president of the bank who was also the loan officer, giving him all of my information: my date of birth, my telephone number, my address, my social security number, and a host of other information. After giving him a ton of information he was finally able to request a loan from the under-signers.
I sat in front of him for what seemed like an eternity waiting the reply. We sat there and talked about things around town and about what was going on in the area. Finally, a reply came back. I will never forget the words of that loan officer, “Sorry, they won’t give you the loan. You don’t have any credit.” What he was telling me, was not only that I didn’t have any credit, but that meant that my credit was poor.
What is an eighteen year old supposed to do? How are you supposed to get good credit when no one will give you a loan or a credit card because you don’t have sufficient credit?
Thankfully, that day many years ago, my father was sitting in the office with me. He looked at the loan officer and said, “What if I would co-sign for him? Then would they be willing to give him the loan?”
The loan officer seemed to think that was a good idea and began the process once again, this time getting all of the information from my Dad. We sat again waiting and waiting for an answer. Finally, the answer came through, “you have been approved as long as you have a co-signer.”
That day I was able to get my first loan for $1,000 even though I had bad or no credit. But how?
By using the good credit of someone else. This is basically what I did in the story above. I was able to get that $1,000 loan on the good credit of my father. By having a co-signer the bank or the people lending the money were assured that someone would pay. They were able to look at my father’s history of paying loans and credit cards and bills and assure themselves that if I would fault, my father would pay in my stead. My father, the co-signer, was acting as the security for the loan, even though it was an Unsecured Bad Credit Loan.
Many years have passed and times have certainly changed, but having a co-signer is STILL a great way to get a loan if you have bad or no credit. Go on a search for someone who would be willing, your father or mother, your grandfather or father-in-law or an aunt or uncle or maybe just a good friend. Go to them and explain your situation. Explain why you have bad credit and how you got into your present situation. Tell them that you want to straighten your credit out and that this would be the first step.