Many people are unaware that credit inquiries negatively affect a person's
credit score. However, many people with bad credit go from lender to lender in
the hopes that if they ask enough lenders, they will eventually find someone
willing to take a chance on them. Thus, those with bad credit are digging
themselves an even deeper hole as each credit inquiry made by the various
lenders only serves to hurt an already bad credit score.
Finding a Lender
A bad credit score puts a person behind the eight ball when it comes to
finding a lender as well as a competitive interest rate. However, all hope is
not lost as there are ways of shopping around to find a lender while preventing
prospective lenders from making a credit inquiry.
Securing the Loan
Be sure to never give out
your social security number because once prospective lenders have a social
security number in hand, they will not hesitate to run a credit inquiry
which results in another red mark on an already bad credit line.
Research prospective lenders
online and then call before making a face to face visit.
Be honest with the loan
officer but spare them your bad luck story.
Be prepared to state your
case over the phone in a concise manner.
Show up to the face-to-face
interview with your credit report in hand and go over the report with the
prospective lender while making sure to accentuate the positives.
Make them aware of any
changes in your lifestyle that you have recently made that would show them
you are turning things around and making an effort to repair your bad
credit.
Ask the prospective lender up
front questions in order to determine whether or not they are truly
interested in lending despite your questionable credit history.
Only after the lender
genuinely seems positive about the chances of you securing a loan should
you provide personal information and a social security number to the
lender which would allow them to do a credit inquiry.