There are signs a person must look out for to know that they have a bad credit. This includes paying higher interest than advertised, your checking account is always overdrawn. cell phonies companies don’t give you a contract. In addition, the most important is that you are always late on housing, utility bills and other bills including credit card payments. All the above mentioned can adversely affect your credit score.

To prove your creditworthiness, one must have Tax return forms, salary and pay slips, a list of assets like car, house etc. The lender would also require details on your current unsecured loans like credit cards and payment of alimony or child support if any. Although not all are important, these are major checks that a lender would look when you borrow money with bad credit and this would increase the trust in your ability to pay back.

A person with bad credit would need to build credit. Installment loans guarantee people with bad credit with a freedom of due date and frequency of payment. Though it is a form an of debt, this is the best kind of debt. It will allow you to build credit with regular payment of loans. Payday loans are another option which will be linked to borrower’s payday.

In conclusion, there is a myth that people with bad credits are not victims of identify theft. However, the myth needs to be busted as their social security number is vulnerable to identity theft. When you need to build credit, identity theft can ruin your credit scores. It is also important for people to note that there are scams who exploit people who need payday or installment loan and have a bad credit. There is no shame in checking credit scores and if you are a victim then inform the authorities immediately.

If you have bad credit and urgently need of a loan, try peer to peer lending or borrow money from families & friends before going for installment loans before using payday or installment loans.