Bad Credit Loans (Part 1 of 3) : Where To Get & How To Apply


So you’re in need of a loan but you got
bad credit. Have no fear. Today, we’ve got you covered
Alright! I’m gonna show you exactly Where to Go and exactly How to Apply to get
your loan even though you’ve got Bad Credit. So that being said those of you
that don’t know me my name is Diego Rodriguez and I’m a United States Marine, Author, Real Estate Investor, Entrepreneur,
Creator of the ‘Build Credit For Your Business’ Workshop and Mentor. Just a little bit of
housekeeping: So please, before we get started go ahead and Subscribe to the
Channel that way you don’t miss out and sent your alerts! Because we’ve got
some cool stuff coming your way. And also always please feel free to ‘Comment’,
‘Like’ and ‘Share’ any questions you may have or anything you would like me to
cover in the future, alright. So, go ahead and ‘Comment’ below, and also please make sure you watch all the way to the end because I’ve got some cool stuff for you
right at the end all alright. So that being said, Let’s Get Started…
So let’s jump right into it okay. For those of you that don’t know, this is
Lending Club, okay. So basically, what they do is: They act as the middleman between
borrowers and investors right. So a little bit about you know who they are
and what they do… Lending Club brings together a group of investors, like
myself that want to lend money and earn a decent amount of interest in return,
right. Because most people that have money, they don’t want it to just sit
down in their Savings Account and collect dust, you know. Maybe earning one to two
percent of interest at most! So, they actually use places like Lending Club to
invest and lend their money, and they let Lending Club do all the homework as far
as, you know… doing the application process and reviewing the applicant, as
far as you know checking the credit and doing the background check on them okay.
On the other side right, is the Borrowers. So for example, most borrowers are on here because they want to consolidate debt, make improvements to
their home, you know… maybe finance a major purchase, whether it be you know maybe an engagement ring, or maybe it’s a car,
you know. So, this is the perfect place for you if you have bad credit and
you need a loan. So first, I’m gonna show you the process of how to apply right.
For one, the application process is simple right. It’s right online. But I’m
gonna show you, you know a few things to look out for and tips when you’re
applying, so your application doesn’t get red-flagged, okay. So, if you follow the
tips I’m gonna share with you, you’re gonna be good to go, okay. So, for most of
you, you’re gonna be here on the personal loan side and you can borrow up to
$40,000. So I’m gonna show you both. I’m gonna show you the application process,
and I’m gonna show you what it looks like on the investor side. The investors,
it’s not just one investor that’s gonna lend the entire $10,000 right. The great thing about Lending Club is that they pull the wealth together of
all the investors, so all the investors can lend together to fulfill the loan
amount. So for example, like let’s say your loan is for $10,000, then each investor can put as much money as he wants or she wants into that loan.
You’ll be surprised how fast your loan gets funded! Alright… So, let’s just go in
through the application process. I’m gonna show you as far as I can go
without actually, you know requesting a loan, okay. Just click here. You know, we’re
saying: Yes, we want a Personal Loan. How much do you need? So especially if this
is your first time, you know… I would not go up to $40,000, right. Because keep in
mind… The loans are not short-term, which is a
good thing, right. So, the loans typically are either 3
years or 5 years, which is good. Because the trade-off here is, if you’ve
got bad credit they’re gonna expect you to pay a little bit more interest. So
what I’m trying to get out here is, you can’t really afford to take out a huge
loan like $25,000 or higher, when you’ve got bad credit
because you’re gonna expect to pay you know a huge amount of monthly payments,
right. So, you want to stay on the conservative side. You know, maybe $10,000-$15,000. I wouldn’t go above $15,000. So you know, for whatever
reason, you know… it’s up to you. You’re gonna go through the loan process and
before you actually request it, you confirm the application, they’re gonna show you what interest you’re gonna have to pay,
and also what options you have, whether you want it for 3 years or 5 years. So depending on what you want, before you actually submit your
application, you get to decide what option you think is best for you. Let’s
say it’s $10,000 right. Here you get to select what the actual loan is for. If the applicant is saying like they’re taking out a loan
for a vacation, to me, that’s kind of like suspect. I mean, you can go
on here, and if it’s like you know a once-in-a-lifetime vacation trip or
whatever… I’m just telling you what I look for, the type of loan that I would
invest my money into as an investor. I will not invest in somebody applying for
a loan that’s for vacation, okay. Just in my experience… To me, that’s a little
bit suspect, okay. But when you come on here just be honest, you know. Say exactly
what you need the loan for! So most of the time, is going to be for credit card
financing, debt consolidation, major purchase, or medical expenses, okay. So
let’s just say it’s for debt consolidation, okay. So here’s you can see,
it says it won’t impact your credit score. Keep in mind right, they are gonna
do a credit check on you, and they are gonna do a background check on you. When I say background check, I mean as far as if you’ve got criminal
records and all that. You’re still gonna see… I’m gonna show you. You’re still
gonna find people, I mean as far as lenders wanting to lend you money,
right. They’re still gonna lend you money because the all the investor is looking
for is to make a decent return on their money. Your application is still gonna
get approved then it’s just gonna get presented to all the investors on here,
to start funding your loan request, okay. So next step is, who’s applying? Okay, so
most of the time is just going to be just one person, you know. If it’s two of
you, then you could go on there and then, when they ask for, as far as income, then
you can put both incomes. But for the most part, it’s gonna be just me. All
right, so then continuing on. Hit next. And then, in the beginning, when you’re
going through the process, it’s what they call a soft pull on your
credit. It’s not gonna hit all 3 you know: TransUnion, Equifax, and Experian.
That’s a hard pull when they hit all 3. When they check your credit, they
are gonna do that eventually once you fill out everything on your application
and they show you your options. Once you accept your exact terms on the loan, and
you hit submit, then that’s when they’re gonna do a hard pull on you. But you go
through the process and they check your credit, whether it be Experian,
Equifax, and TransUnion. They’re just gonna pick one. Doing that helps them determine what kind of rate you’re gonna be looking at, if you decide
to go through with the loan application. Alright, so just go through the process.
Just be honest about why it is that you need a loan! How much you need. You know, state your income. And I’m gonna give you a few tips of what you should put on
here, right. I’m not telling you to lie, okay! But, I’m gonna give you a few tips,
as far as what you should say, and what you shouldn’t say. So that way you can
avoid ‘Red-flagging’ your application, and then Lending Club will force you to
verify your income, okay. So simple, right… Date of Birth. Okay your
annual income. Alright, when you submit the loan, the way it’s gonna get
presented to the investors is… They’re gonna see what your monthly income is,
right. So what I like to see, is people making at the minimum, as an investor, I
like to see that the applicant is making at least $2,500 a month. But,
if I see that you are… like if you live in the major city, where the cost of
living is high, for example, like New York and California typically at least $3,500
to $4,000 a month is what I look at in the borrower. But that doesn’t mean
necessarily that other investors wouldn’t lend if you make a little bit
less, okay. I’m just telling you what I look for! So again, be honest in your
answers! So for example, total annual income… So, I’m saying I like to
see $2,500. So if we go here… If we calculate $2,500 a
month 25 times 12… so annually it’ll be about
$30,000, right. So you should be stating, let’s just say… $33,000 is what
you’re saying you make annually, okay. Then, it says I have other sources of
income that I might use to repay the loan. You know as far as…if you’re
receiving you know, if you’re a veteran for example and you’re receiving you
know compensation pay. Or a pension, or alimony payments. You know… whatever it is, if you’ve got other sources of income then just put it here, okay. But for the
most part, you just got one source of income. So annually, I’m saying $33,000
,okay. Then your first name and last name. So now, you’re gonna go through the process of creating an account through Lending Club, okay.
So put your first name, last name, your street address.. Because, they’re
gonna verify where you live, right. Remember, again don’t go in here and try
to BS your way through the application process. Because if you do, they’re gonna
‘red flag’ the application, and then they’re gonna force you to verify your
income, okay. So be honest going through the application process to avoid having
to verify your income, alright! So go ahead, put your address. Alright, then
just go ahead, click Next. So now, they’re gonna ask for the email. Okay make
sure you click here. If you need to go ahead and read it, go ahead and read
it, right. For the most part, it’s always the same. Same Term of Use, Privacy
Policy, Esign Act, alright. Because remember, they’re gonna ask you of course
to sign the application to verify that you’re being honest with all the
information that you’re providing, right. But everything is gonna be done
electronically. So follow the tips that I’m giving you, that way your
application does not get ‘red flag’, and then they force you to verify your
income and all that, okay. So go ahead, click here. So they’re going through the
process right now, building out the loan for you, okay. So right here…. Boom!
Congratulations, you qualify for a loan up to $10,000. Your customized loan
offers are waiting. Which loan would you choose? Alright, so here it is, right. This is the offer you’re getting, or I’m
getting as far as the information I put in, for what type of loan I wanted. How
much I wanted… Right, I wanted $10,000, and I put in my date of birth, right. So they
already done whatever means they use electronically. They already
went into a little bit as far as how much debt I may be in, credit card wise
okay. So as you can see here, the options I’m
getting, right… I wanted $10,000. So I said I wanted it to pay off credit card debt. So, if I go here right… It’s telling me, they’ll give me $10,000 but
at least $1,800 worth of the loan has to be used
to pay down the credit card debt, right. So if I choose this option, I can’t just
get all the $10,000 cash into my account. They’re telling me… Yeah, they’ll give me
$10,000 but at least $1,800 of that $10,000 has to be used to pay down
the credit card debt, right. And then the rest of the money is gonna be deposited
right into your bank account. Okay so, 36 payments right… so
it’s gonna be 3 years. If I choose this option, this is gonna be a 3
year loan. And this is gonna be my monthly payment. And this is the interest
rate that I’m paying monthly. As you can see here, the APR is a little bit
higher, right. I don’t want to go too much into the definition of how to calculate
everything, but just real quickly… APR stands for your Annual
Percentage Rate. The reason it’s higher than what the
monthly interest rate is, is because it’s taking into account your Origination Fee. As you can see here, it’s showing you 6.46% is gonna be your monthly interest. So that, as an investor, that’s what I’m gonna make
monthly on your payments, okay. But the way Lending Club makes their money is
the origination fees, right. Of course they’re gonna charge you a fee for
giving you the money. But it’s taken right out of your loan amount, okay. So if
you’re requesting $10,000, they’re gonna charge you 4.50%,
which comes out, as you can see here to about $450, which comes right out of the loan amount. So it’s not like you’ve got to come out of pocket for it. So that’s why it shows, as
far as your APR is a little bit higher than the actual interest rate. But I just
want to show you the the way it looks, okay. So your numbers of course, are gonna be different. So this is the option if I went ahead and use their their means of
paying down the $1,800, okay. And when I say they, that means that
Lending Club is going to automatically pay directly. You’re gonna put in the
information of your credit card company, that you want to pay off, and Lending
Club is gonna go automatically and transfer that to pay off that debt, okay.
And then, the remaining balance is gonna go right into your bank account.
But again, you’ve got several options, right. Let’s say you don’t want this
option. Let’s say you want the option of a 60-month type of loan, okay. But the
interest rate is gonna be a little bit higher. So if you don’t really care about what the interest rate is… Like all you worried about is what your
monthly payment is gonna be…this is gonna show you what its gonna be, okay.
But let’s say you don’t want Lending Club to pay down the the credit card
debt, right. Let’s say you want the entire cash payment! If that’s the case, then
this is the loan that they’re offering me, okay. For you, it may be a little bit
higher, as far as interest rate depending on your credit history maybe. Okay so,
if you have any questions you know you can always reach out to me! Or you
can actually give them a call. Go ahead and call a representative for
Lending Club to walk you through the steps. So let’s say, this is the one I
want to pick. This is the one I want, all cash delivered straight into
my bank account. Click continue. Okay and now, they’re gonna keep going through the
whole application process, alright. Again, be honest! Because when they do the background check on you, most likely, depending on the
credit… when they do the credit check on you, it’s gonna show you if you
have a mortgage or not, alright. So be honest! So let’s just say, for example
purposes, I pay rent. Your phone number, of course they’re gonna want to stay in
contact with you right if they have any further questions. So go ahead and put
your phone number in… Next. Alright, now what’s your employment
situation. Okay employed full-time, I’m self-employed, I’m retired, other. Don’t
put ‘Other’, okay. When you start being, you know… When you’re not specific
about who you are and your current condition, that’s when your application
is going to get ‘red-flagged’, okay. So just be honest, alright. Say I’m fully employed.
Click Next… Employer Name. Go ahead and
put your employer name whatever it may be. Let’s say I work for… I don’t know.
Let’s say I work for Office Depot, okay. Your Job Title… Another thing
to keep in mind, when you’re stating your income and you put your job
title, make sure… Like if you’re saying I make $80,000 a month, and as far as my
employment… I’m saying I’m working as a Waiter. You know…That’s gonna raise
a red flag, right. So be honest okay! That way you avoid getting your application
red flagged, and then having to truly verify your income, okay. What I’m trying
to help you guys is fill out your application, that way you get your loan,
you tackle whatever problem you may have, and you avoid having to go
through verifying your income, okay. So, job title. I’m going to say
Sales Manager. Another thing, guys. Make sure your spelling is correct! A lot
of times, believe it or not, I see a bunch of applications that, they go through and
they get presented. The application gets approved, and it still gets
presented to investors. But they come in here and for whatever reason they misspell their Job Title. I mean… You’re going in here, and you’re
requesting a loan. At least take the time out to make sure you’ve got correct
spelling… at least you know. I can’t tell you how many times I go in here, and the
application looks decent as far as like credit history, and all that. And
then, I see in their job title… They’re misspelling Manager. That’s one
of my pet peeves. I mean, other lenders might lend to you but I won’t! if I see
that if you can’t take the time out to just make sure that your spelling is correct, what does that say about you? Alright another thing I look out for is the number of years of employment.
Again, be honest. But I look for a minimum of 2 years. If you don’t put
2 years, it doesn’t mean that your application is not gonna get approved,
okay. I’ve seen it numerous times, applications and they have less
than 2 years. That doesn’t mean that other investors won’t. At the end of the
day, most of the investors on here are looking to earn a lot of interest on
their money, right. So the riskier your application is, the more
interest you’re gonna have to pay as a Borrower. So as an Investor, they want to
invest their money on loans that are having to pay high interest, right. That’s
how they make their money. So what I’m trying to tell you as an applicant is be
honest, okay! That way you avoid getting red flagged, and having to verify your
income. It says I’ve been working at this business for less than a year. If that’s
true, then just click here, okay. But if it’s not, I always look for a minimum of
2 years. Okay, what is your works contact info. Your work address. Put the
address in here.. 1 2 3 Main Street. The work phone. Go ahead and put it in
the number. So again, they’re taking down this information, but they’re not
necessarily gonna verify your employment and your income, okay. This information…
They want to take it down…. So be honest just in case they do, right. But again,
what I’m trying to give you is the tips to avoid having them either verify
income, or verify your employment, or both okay. So just be honest in the
information, just in case they do decide to verify your employment, okay.
So again, if you’ve been employed for less than a year, it doesn’t matter.
They’ll still approve your application, okay. It’s not like a bank,
where if all these criteria are not met, they’re gonna deny your loan. That’s not
what Lending Club does, okay! They’re trying to help you, okay. So you see here…
Do we have the right Diego? Okay, they’re gonna verify who you are. So put down
your social security number, okay. After this… Once you put your social security
number here, this is when they’re gonna do a Hard Pull on your credit. This is when they’re gonna go in and pull all three credit scores
to verify who you are, okay. Not only are they gonna pull your credit, but they’re
also gonna do a Background Check, as far as your Public Records. So from right here alright, I’m gonna end it right here. I’m not gonna go
further because if I put in my social, they’re gonna pull my credit and then
they’re gonna submit my application, okay. So for you guys, that’s pretty much it
alright. Go through the application process. As you can see. It’s quick, easy,
simple, not painful. Just be honest! Be honest so your application does not get
red-flagged, okay. So now, I’m gonna go into showing you the Investor side… So
you can see what your application is going to look like, and how the Investors
are gonna see your application and start funding your loan!

5 comments on “Bad Credit Loans (Part 1 of 3) : Where To Get & How To Apply”

  1. Katina CreditLady & Collection Expert says:

    Great information…..Can you also apply with good credit?

  2. Katina CreditLady & Collection Expert says:

    Does the loan report to all # credit report after loan as a good tradeline as long as your paying?

  3. Universal Strategies says:

    Thank you for watching! Let me know what you think in the comments!

  4. GloryWalker kitchens says:

    I got bad credit no felonies..i need a small business loan to quit my job and get my business GOING to get a cpa..update my website..hire 2 employees..business cards and insurance licenses..and improve my business consulting

  5. Harvey Wilson says:

    What the lowest credit score they will accept

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