Bad Credit Unsecured Personal Loan.

Is it possible to obtain a Bad Credit Unsecured Personal Loan? We receive many emails from people trying to “clean up” their credit or do a credit repair. The one thing we tell them is that there is no quick way to fix bad credit. Do not fall for scams that claim to clean your credit file in 30 days. This just will not happen. However, you can dispute information in your credit file and the creditor is required by law to verify the disputed information within 30 days. Information that can't be verified must be removed.

Follow these steps for doing a legitimate credit cleansing that you can do for yourself.

1) Obtain your credit report from EACH of the three credit bureaus: Experian, Equifax, and Transunion. It is cheapest to purchase your reports online directly through each credit bureau's web site rather than going through a reseller (who makes a profit).

2) Check for accuracy/errors. Make sure all of the accounts listed are YOURS. Make sure all closed/paid accounts have been reported as such.

3) Dispute inaccurate information through EACH bureau. This is a very important point. Since each credit bureau is independently owned and operated, they do NOT share information. You must dispute inaccurate information with EACH one separately. Just because you file a dispute with Experian does not mean it will be corrected in the databases of the other two credit bureaus. Disputed information that cannot be verified within 30 days MUST be removed from your credit file.

4) The best way to build and repair credit is to obtain credit! Fortunately there are bad credit lenders who will grant small loans, secured credit cards, and unsecured credit cards with low credit limits. Proper use of the credit privilege provided by these lenders is reported to the credit bureaus and your credit scores will improve over time!

5) Reduce your balances on existing credit cards to 75% or less of your available credit (30% is preferable). This is one of the most important points of all! High debt to credit ratios will have a significantly negative impact on your credit rating.

6) Finally, do NOT fall for credit service scams! The only way to repair credit is by following the steps above. You can do all of this yourself for free (excluding the cost of your credit report purchased from each of the three bureaus).