There are times that we need extra cash to achieve our goals such as expanding a business, preparing for an event, accidents or certain medical conditions and many more. It’s easy to apply for a loan and get approved when you have a good credit score. However, those with bad credit history may have limited options when it comes to the loans they can avail. There’s nothing to worry though since you can still avail for a personal loan even if you have a bad credit score. Read along to know how.
What is a Bad Credit Loan?
A bad credit loan is a solution that can truly save you from a financial emergency even if your credit score is below 650. Most banks don’t approve applications from borrowers with bad credit. Instead, visit a small loans provider when the need arises. Just like personal loans, bad credit loans are paid in instalments depending on the terms and conditions of the lender.
How to Get a Loan?
If the need isn’t urgent, try improving your credit score to widen your options and increase chances of borrowing your desired amount. One of the main factors that contribute to your credit score is your credit card itself. Start off by paying debts on time to make an impression that you are a good payer. Also, lessen your credit utilization as much as possible to avoid new debts from piling up into your account. If possible, avoid applying for a new credit card to lessen your credit use. In a few months after following those 3 simple steps, your credit score will surely improve so you can avail of bigger loans.
However, if it is an urgent need such as an emergency, you may try to ask help from a lending officer and convince them that you’re still creditworthy even if you have bad credit score. You can do this by proving to them that you have regular financial source, providing a list of your assets, job details such as history and salary and many other more depending on what the lender asks. The lending company may conduct a personal interview with you to see if you are creditworthy or not.
Where to Get a Loan?
Big banks usually don’t entertain people with bad credit scores so don’t bother going to them. Try a credit union instead. A credit union is just like a community bank and they are willing to lend money even to those with poor credit history depending on your character and the promise to pay. If you are employed, try looking for credit unions affiliated with your employer to make things easier.
If you know someone who has good credit, ask him to be your co-signer for a bad credit loan. Chances are you can increase the amount you can borrow and make process easier. Make sure to pay on time since both of you will suffer the consequences of delayed payments.
Don’t lose hope if you have bad credit score because there are still other ways where you can get the extra cash you need.