How to Find a Loan for People With Bad Credit Without a Membership Fee

America is in a credit crisis, which means many Americans are struggling with bad credit in an economy where credit has become a necessity. Lending institutions have made it extremely difficult to get loans in today's market, so many families are searching for legitimate loans, but cannot afford to pay a membership fee to a service that wants to provide them with alleged loan offers.

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  Review your personal history (credit, whether or not bills are paid on time and up-to-date, income and outgoing bills; job history will also be beneficial to getting a loan). Check with your financial institution (keep in mind that banks will sometimes be more difficult than credit unions). Schedule an appointment with a lending specialist or speak to a customer-service representative of the banking institution about the requirements to get a loan. Ask your banking institution if they can help you with a loan and if not, ask them if there is an organization out there that can. If you are not at a point where you can get a loan from your financial institution, find out what you have to do to meet their requirements (perhaps you can revisit the idea with them in just a few months).

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  Check to see if you have a credit score of at least 520 or higher. If not, take steps to get it there. Pull current copies of your credit report through all the major agencies individually (Trans Union, Equifax and Experian) in order to have an updated copy of your credit. Check the credit report for negative marks, such as judgments and small debts (under $100 each). If possible, pay off small debts (keep in mind that paying off a debt will remove it from your credit, and as each debt or negative mark is removed, your credit rating will go up 5 to 10 points). Contact each credit agency individually as you pay off small debts and provide them proof of your payment, asking them to remove the negative item from your credit. Dispute all claims on your credit report individually with each agency (Experian allows you to do this online; if the creditor does not respond to your inquiry through the credit bureau within 30 days, you automatically win the dispute and it will be removed from your credit).

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  Visit Prosper online. Click the button that says "I want to get a loan." From the pull-down menu on the left-hand side of the page, choose the purpose of your loan. Enter a dollar amount below between $1,000 and $25,000. Select the quality of your credit from the pull-down menu. On the next page, choose from getting a personal loan, getting a student loan, credit counseling, debt relief, and do-it-yourself debt-relief options (Prosper makes various legitimate lenders, such as Lending Tree, People Capital, etc, available to users).