If there are listings that you don't recognize, report them to the credit bureau. Additionally, if there are listings that were turned over to a spouse after a divorce, for example, report those as well. The credit bureaus will contact the creditors with these disputes. Creditors are given a 30 day period to respond and verify that the debt is true, or if they are indeed errors, they are required to remove the listings from your reports. If no response is received after you file your dispute, the credit bureau is required by law to remove those listings from your reports. Demand that the credit bureau correct these mistakes promptly.

If your credit report shows legitimate late payments or bankruptcies, include a letter with your poor credit loan application, explaining the circumstances of these marks against you, and how the situation has changed for you. This can greatly reduce the impact of these negative listings. Be honest with the lender! Trying to conceal your past credit problems is the fastest way to get your poor credit loan application discarded.

4. Consider a small lender.
Larger banks aren't necessarily the best place to apply for a poor credit loan, and in fact, can sometimes be the worst place to apply. Smaller banks and credit unions are often more inclined to finance businesses in their community, even those applying for a poor credit loan, and their loan officers are more likely to give you individual attention and listen while you state your case. Each inquiry into your credit report generally reduces your credit scores by five points, so choose your lender carefully before applying for a poor credit loan. Ask the lender to review your situation prior to pulling a credit report. If they feel that the proposal shows great potential, while being honest with them regarding your poor credit, and the lender feels that the loan could be approved, you've reached a safe point to move forward and allow them to request your credit report.


Poor credit loans can sometimes be difficult to obtain, so be resourceful on where you get your loan.

A. Consider a home equity loan.
For example, home equity loans can be used for purposes. However, keep in mind that if the fails, you may also be at risk of losing your home if payments are not made.

B. Consider working with a specialty lender.
Some lenders specialize in poor credit loans for high-risk entrepreneurs. These loans usually have high interest rates, but can sometimes offer a provision for lowering the rate when the shows positive cash flow and the borrower demonstrates the ability to pay the debt.

C. Approach the Small Business Administration.
The Small Business Administration (SBA) has a wide variety of loan programs to assist owners and potential owners. The SBA does not provide loans, but rather, guarantees a loan, reducing the lender's risk of loaning you the money for the poor credit loan. The SBA also maintains a list of business-friendly banks. For more information, contact your local SBA office, or visit sba.gov.

Rebecca Game is the founder of Digital Women ®, an online community for women in business. A 30 year entrepreneur and dedicated to helping other women find small business loans. Visit her site: Loans for Women www.digital-women.com