If you have poor credit, it may feel like you have become some sort of pariah, shunned by all financial institutions. Most people with poor credit find themselves in that situation because they hit hard times, not because they were irresponsible with their financial behavior. However, lenders are indiscriminate about reasons for bad credit, and simply turn you away. You can, however, find out how to fix poor credit to obtain loan services. Unfortunately, this does take a little bit of time. If you require money very urgently, therefore, you may want to consider a short term loan for people with bad credit. Try, however, to avoid this as much as possible, and don't go for long term loans for those with bad credit as well, because by taking the time to fix your credit at least slightly, you will be able to get much better rates.
How to Fix Poor Credit to Obtain Loan with Regular Interest Rates:
The first thing you need to do is obtain your credit report from the three main credit agencies. You can do this for free once per year. This will tell you exactly which marks are against you. It is possible that there are errors on your report and you need to have them fixed straight away. You can also challenge everything on that report, even if it is accurate. If the creditor does not respond to your challenge on time, the credit bureau will remove it from your file, instantly increasing your rating.
Once that is done, you will be left with the genuine marks against you, and you need to take steps to improve on those. The best way to do that is to actually pay them off, but if you are looking at how to fix poor credit to obtain loan with regular interest rates, it is unlikely that you have enough money in your account to pay off your debt. What you can do, however, is come to a payment arrangement. Even if you make token payments, it will show up on your report.
That is all that you can do about the bad marks against you. You can, however, do things to add some good marks. Having a landline telephone number and a mobile phone, for instance, makes you look better. Having a credit card, using it, and paying more than the minimum payment is also very beneficial. These things show potential lenders that you may have bad credit, but that you are also engaging in excellent financial behavior to avoid further bad marks from being placed against you.
Other Possible Solutions:
If all of that fail, you will have to start looking at lenders that offer products specifically to those with bad credit. Unfortunately, such services are very expensive. The best way to get an affordable loan if you have bad credit is to search for a guarantor loan, meaning you ask someone else to vouch for you and to agree that, if you don't make the payments, they will. Do make sure you carefully consider whether or not this is something you want to do.