7 Best Types of Loans for People with Bad Credit
Have you noticed how those in desperate need of personal loans are the ones to be refused? Unfortunately this is the case for many millions and it is getting to a point where they are struggling to do the basic everyday things. In most cases, being refused a loan is down to bad credit and while it sometimes can’t be helped, it does stop us from being us. However, there are still a few ways to get a loan even if you have bad credit and it is not down to lying! You can be honest and still qualify for a loan but how? The following are seven loans open to those with bad credit.
A Loan from a Private Lender
There are a surprising number of lenders who are more than willing to help those in need. Private lenders have doubled in recent times and that is great news for those searching for poor credit loans. The best thing of all is that your own family or friends could offer such loans. You can of course seek them out and ask for the loan and you can get the money you need and repay in a timely manner. You should also visit our top article here. These types of loans don’t actually depend on your credit score or history so that is a real bonus though you might find the borrow amount is relatively smaller compared to a conventional lender.
Credit unions and banks and other traditional lending streams are more than willing to offer you a loan even with bad credit – as long as you have a co-signer. Now, if you do want to opt for this loan option you have to make sure your co-signer has good credit otherwise the loan can be turned down. Loans for poor credit from traditional banks aren’t easy to come by but having a co-signer is a lot simpler for them as they have the security of a trustworthy person. In the long run, the bank will get their money one way or another.
You might think obtaining an unsecured loan is out of the question when you have bad credit but not always. There will be lenders willing to offer you an unsecured loan but be warned, it is no easy feat. This is going to take a lot of time and patience as there are only a select few who may be willing. Finding unsecured loans if you have bad credit isn’t impossible but it’s very hard. Most dismiss this option immediately but if you find the right lender who offers a fair interest rate, it’s a possibility.
It’s more than likely those with extremely bad credit are going to have to put some of their assets on the line. While unsecured loans are an option, not everyone will qualify for such loans which means secured is left. Now, these types of loans can be good as long as you keep to your repayment schedule and never miss a payment. You put up collateral which could be in the form of a vehicle, a home or an expensive piece of jewelry and the lender offers the money. These can be a bit risky for borrowers but if you repay then you shouldn’t have too much of an issue.
Apply For a Credit Union Loan
Credit unions are usually more inclined to loan money than a bank for those struggling with poor credit scores. The amount in which you can borrow can vary considerably and it may all depend on your previous debts and how you repaid them. However, interest can be a little higher than normal but it is to be expected. These aren’t technically personal loans even though most see them as that but they do have to be repaid and on time. Credit unions can still affect your credit and if you fail to repay then it is going to put you in a worst position.
Bad Credit Loans
Most people searching for loans for poor credit will end up choosing a bad credit loan. These are exceptionally impressive and very easy to obtain too. If you have poor credit or haven’t established credit yet then these are the loans to look into. However, you must be warned that the amounts in which you can borrow can be pretty low in comparison to normal loans and interest can be high too. It’s more than likely you’ll qualify but that doesn’t mean to say they aren’t without limitations because they are.
You can easily apply for a home equity line of credit if you own property. Real estate is golden when it comes to obtaining a loan as lenders ask for this in the form of collateral. If you are willing to risk your home for the loan then it’s a potential option. However if you fail to repay you will more than likely lose the home so it’s best to make sure this is a viable solution. Home equity is a useful line of credit but again that doesn’t mean to say it’s the right one for you personally. Poor credit loans aren’t always easy to find depending on your circumstances and home equity might be better for you personally.
Don’t Let Bad Credit Ruin Your Life
Everyone thinks once they have bad credit that is it, their lives are over and there is no way out of this hole they’re in. however, that isn’t quite true as there are many avenues to explore. Debt isn’t going to go away overnight and for most, that is the issue but there are ways to obtain a loan when in need. Loans for poor credit do exist if you know where to find out.