How to Get a Small Loan for Bad Credit
Categories: Blog Posts
Have high credit usage? Get a small loan for your bad credit like this.
Credit is a powerful tool for real estate investors.
A credit score, even more so.
Sometimes the very projects that are making you money stifle your ability to get a loan to start your next project. Let’s briefly go over why this happens – and how a small loan for bad credit could help you.
About Credit Usage Loans
Not every real estate lender offers loans under $75,000, but we believe this size of loan is important. A popular way our clients use these small loans is as an “Improve Your Credit Score” loan – a usage loan.
Credit usage is a common sore spot for many real estate investors’ credit scores.
Maybe you use your personal credit card to fix up your properties. You pay all the charges off once you sell or refinance your flip.
But in the meantime, you’re using a high percentage of your personal credit limit. This usage negatively impacts your score. With a bad score, you lower your chances of getting a great loan for your next project.
Here’s where our loans come in:
- You take out a private loan with us.
- Use those funds to pay off your personal credit cards.
- Your usage goes down dramatically, improving your score so you can get approved for other loans.
Once you get the balances off your personal credit cards, we recommend moving your fix and flip expenses to a business card.
Get a Small Loan for Your Bad Credit
Have questions about how these small loans work? Need a smaller loan? Reach out at Info@TheCashFlowCompany.com and we’d love to see how we could help.
Watch the video here: