How To Get Approved For A Loan With Bad Credit - YouTube

How to get approved for a loan with bad  credit? I know, i know. Everyone tells you  

"You need good credit and a down payment  in order to get approved for a loan".  

Well, that is not necessarily true  if you know exactly where to look  

and what to say when you get there.  I'm going to tell you how. Let's go.

So, when it comes to getting approved for a loan,  many of you guys already know there is a process.  

Usually, go to a bank, you fill out an  application, they ask you for all of these  

different documents. And then you will provide  them to and they will either approve or decline  

the loan. But in many cases, we already know  they're looking for someone with good credit,  

good employment, good income, and good assets. We  may not necessarily know what good means but we  

know that they are looking for something good.  And if we have bad credit or a bad situation,  

they are probably not going to lend to us.  That is the case in most situations. Because  

what a bank is looking for is to see if you're  going to be able to repay the loan. As we know,  

as a former vp out of bank, they are looking  for people that are going to pay them interest.  

And the only way to get the interest is if  people continuously make their payments.  

So, when someone is looking and pulling your  credit to see if you are a good credit fit,  

they are looking to see if you have the capacity  and the willingness to pay the loan back. And so,  

what we will do is look at your personal credit  report to see if you've paid other people well.  

And if you have, then potentially they will lend  you money. This is how the process works and this  

is what they're looking for. But this can be  very tedious for people because like I said,  

we don't necessarily know what good means. We  may know that we have bad credit or we don't  

have good assets or we don't have good income.  But we don't necessarily know what they want. So,  

I'm going to share with you some secrets  on exactly what they're looking for  

and how to show them exactly what they  want to see. So, when I worked in banking,  

I worked as an underwriter at one point. And that  is basically the person that approved or denied a  

mortgage loan. It was a very boring job for me  but I got to look at a lot of people's files.  

I got to look at a lot of credit reports. I  got to look at a lot of pay stubs, tax returns,  

assets, bank statements and things like that to  see if I thought this person met our company,  

our bank's guidelines, and if I should approve the  loan. We were taught something called the 5 C's  

of lending. And the 5 C stands for collateral,  capacity, credit, character, and conditions.  

Those are the 5 c's that they are looking for  and I'll quickly break down what those mean and  

why they look at your credit report and why bad  credit could hurt you. So, one of the things, like  

I said they're looking for is your credit. They  want to see how well you have paid other people  

because to a lender, this is an indication of how  well you will pay them in the future. So, they'll  

look through your credit report to kind of see,  "Hey, has this person paid other people? Are they  

the type of person that paid people back? Are they  the type of person that doesn't pay people back?"  

But that's not the only thing that they're looking  for. Like I said they're looking at your capacity.  

Are you able to pay this loan back? Do you have  the capacity to pay the loan back? Do you have  

a job for example, okay? So, that is where the  employment is going to come in, they want to make  

sure that you are employed in a stable way whether  it be employed by someone else in a stable way  

or you have a stable business that is providing  you income. They're going to make sure you have  

the capacity to pay them back. The next thing  they want to know is what is your character.  

Again, that goes back to the credit report. Do  you have the character? Are you someone that  

usually pays people back, alright? They want to  make sure you're usually the type of person that  

pays people back and that has been your history.  The next thing of course is the collateral. So,  

in some cases, they require collateral. Collateral  means the thing that secures the loan. So,  

using for example a mortgage, a mortgage loan  is collateralized by a house, okay? The house is  

the collateral for the mortgage loan. So, if you  don't pay the mortgage, they take the house back.  

The house is the collateral. It's a very simple  process. But in some cases, if you're doing like a  

personal loan where you don't have any collateral,  there's no collateral. You're just saying, "I  

usually pay people. Loan me some money. I promise  you I'll pay you back." Okay? That is a loan that  

has no collateral. But in most cases, there are  loans that have collateral like auto loans and  

mortgages. They usually want to collateralize  it against something in case you don't pay.  

And then last but not least is conditions. Under  what conditions are you asking this money? Are you  

asking for all of the money to buy the home?  (for example). Are you asking for 100% of the  

home's value? Or are you going to put down a down  payment and only take 90% of its value or 80% of  

its value? They want to know the conditions. Like  under what conditions are you asking for a loan or  

are they approving your loan. Are they approving  you for loan for 30 years, for 20 years, for 10  

years. Do you have to pay them monthly? Do you  have to pay them weekly? Do you have to pay them  

daily? The conditions of the loan. The conditions  that you want they are looking at to see if that  

meets their guideline. And sometimes, they will  approve you but they will change the terms. So,  

you may ask for a hundred thousand dollars and  they may say, "No. I'm not loaning you $100,000  

but I'll lend you 70,000." Okay? That still works  but that is a counteroffer to what you requested.  

So, that is simply how the mortgage in the loan  process works. Just to give you some examples. So,  

now let me tell you how you navigate through that  process now that you understand it. So, now let's  

talk about if you have bad credit. Because that's  really what this is about. So, if you have good  

credit and stable employment and lots of income,  you're probably going to be able to get approved  

for loans pretty easily especially if you have  a good credit score. But let's talk about what  

do you do if you have bad credit, okay? Because  that's what we're talking about and I used to be  

there I had terrible credit when I started. But we  need to know what are you defining as bad credit.  

In my situation, I have filed bankruptcy and I  have multiple foreclosures on my credit report.  

I had a very low credit score because of those  things. Unfortunately, I had borrowed money and  

I hadn't paid it back. I had bad credit. Do you  have bad credit because you don't pay people  

back? Or do you have bad credit because you pay  people late? do you pay them late but you always  

still make the payments? Do you have evictions? Do  you have foreclosures? Do you have repossessions?  

Like how bad is the credit? That really makes  a difference here, guys. But the key to this is  

we've got to determine what is your bad credit.  So, in order to do that, you're going to have  

to pull your credit report. Step 1 is going to  be for you to pull your credit report. I need  

you to pull it. You can get it absolutely free at  annualcreditreport.com. And go through your trade  

lines and see what is on your credit report. Do  you have late payments? Do you have low payments?  

You have slow pay? Sometimes you pay them on time  then sometimes you pay them late. Did you let your  

car go back? Did you let your house go back?  Did you get evicted? What happened? What is on  

your credit report making it bad because that will  determine which direction that we go in. But step  

one for you, you need to know what do you mean  by bad credit, okay? And then you'll know how to  

navigate through the next steps that I'm telling  you. Okay. So now that you have seen your credit  

report and you kind of know what's up there, let's  talk about how you get approved for this loan  

with the bad credit. My suggestion quite frankly  depending on if you don't have a bankruptcy or an  

eviction or those type of public records type of  judgments, my suggestion is that you should spend  

a couple of bucks and just get credit repair or  credit restoration. Again, Noelle does not do that  

but I have invested in that. And it has changed  my profile, okay? And I suggest you do the same.  

If you have a situation where you just have  some late payments or your credit cards are  

a little bit too close to the limit and those are  some of the reasons why you have some bad credit,  

you could easily get that credit score  fixed quickly with a professional company.  

I'll put a link below to a company that I've  used before. Again, not sponsored. I'm not being  

paid any money. A company called Creative Credit  Solutions. They're based out of Texas and I know  

the owner of the company. So, that is a company  that has helped me and lots of my students.  

Now, if you have a situation though where  you do have the situation that Noelle had  

and you have foreclosures and you have  bankruptcies and you have all this other stuff,  

you're going to have to do something else. You're  going to have to do the credit restoration but I'm  

going to give you another thing that you should  do because your situation is a little bit more  

dire. So, if you have terrible credit like  I did, what you want to do is start taking a  

whole different focus. You want to invest in the  credit restoration. Again, I gave you the link  

below. But if you want to get approved for a loan  or there's something that you are looking to get,  

for example, you're looking to get a car or  you're looking to get a house, okay? And you  

want to get a loan in order to do those things, I  suggest a different route. You can literally use  

business credit in order to get those things.  I have purchased homes in my businesses' names.  

I've purchased cars in my businesses' name. I  have business loans, business lines of credit,  

business credit cards. You name it, I got it,  okay? And this is probably going to be the best  

situation for you. And this is actually a mistake  that I made. I waited way too long to do this.  

If you have bad personal credit, do step one that  I told you. Get some credit repair. But if you  

don't ever want to have this issue again, start  working on your business credit. You can quickly  

get out of the situation where you never have to  rely on personal credit ever again by building a  

solid business credit profile and start putting  everything in your business's name. You could  

do this whether you are a full-time entrepreneur  or whether you are not a full-time entrepreneur.  

You can start this even if you have a  job right now or if you're unemployed.  

This works either way, alright? I've made an  entire video on how to set up your business  

credit. I'll put a link you know somewhere  and you make sure you watch that entire video.  

That is going to be the game-changer if you have  terrible credit. And this will be a situation  

where you can get a car or a house really quickly  without having to go through all of the steps.  

And it will solve the problem where you never  have to worry about your bad personal credit  

ever again. So, there you have it. Additionally,  I've created an entire course absolutely free  

that I want to make sure that you check out. Go to  noellesfreetraining.com. It's a complete training  

that I've made that teaches you my exact formula  for investing without losing money. I've literally  

made millions and so have my students. I want to  make sure that you have all of the access to that  

absolutely free. So, please check  it out at noellesfreetraining.com.  

I want to make sure that you have all  of that resources, all of the knowledge,  

and all of the information that you need to be  successful. This is Noelle. To your success.