There are many different reasons why your credit might not be the best, however there are times that you are in need to a loan. If you are a single mom with bad credit, where do you turn for help with getting a loan? There are several places that you can turn to in order to get a loan, however there are several steps that you need to take in order to begin the process of rebuilding your credit score and getting the loan you need.

One of the first steps that you should take is to secure a free credit report from the three credit reporting agencies. I have written before about why credit scores are important for single moms and will be writing about those credit report scams that you see on the tv also. You know the ones, with the catching jingle promising you a free credit report.

Don’t believe it!

The issue is, if you read the fine print, that in order to get your “free credit report”, you must sign up for a credit monitoring service for a monthly fee. You can get, and are entitled to per Federal law, a free credit report every 12 months by going to www.annualcreditreport.com. This is a free service, with no charge to you.

Once you get your credit scores and information in the mail, you need to verify that the information is correct and then begin to correct the information if it is not. Having a good credit score will affect numerous things about your loan, including your interest rate, terms and amount borrowed, so this is crucial.

Now, the next step that you might need to take is to check your debt and spending habits. If all of your credit cards are maxed out, then good luck getting a loan. Also, if you are spending more than you make and are living on credit, your day will come when you can’t spend anymore. In order to get your personal finances in order, you need to sit down and take a hard look at your income and your spending. Write down your income and then all of your fixed bills that you have each month. Your utilities, car payment, other loans, rent, prescriptions, etc. This will help you to see your current financial situation on paper and in your face. It’s one thing to think about your finances, but it is another to sit down, be honest with yourself on paper and look at the outcome. If there is more bills than money, then something needs to change. Either you need more money or less spending.

One of the more often overlooked resources that you can go to in order to get some help with your financial situation is your current employer. Some employers offer financial counseling to their employees. If your employer doesn’t, check with your current bank or credit union. There are also community action agencies that offer a debt counseling or solution service that is truly free, not a fee based company like most of them are on the television or radio.

Everyone is able to become debt free and enjoy a good credit score. Everyone can do it, however it takes some time, patience and hard work to relearn the correct information about dealing with your personal finances.

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Filed under: Credit Scores • Low Interest Loans

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