What if bad credit was keeping you from getting the loans you need?
Poor credit is very common. In fact, around 16% of Americans have no credit, and more than that have a bad credit score. And when your credit is too low, it can make getting a personal loan very difficult.
While getting that loan may be difficult, it’s not impossible. Keep reading to learn how you can secure the personal loan you need even if you have bad credit!
If you’re reading this, it’s because you’re worried that bad credit is keeping you from getting loans. Our guide will walk you through how to get loans even if you have a poor credit history. However, you should always strive to improve your credit when you can.
You can do so by signing up for a free credit monitoring service. These services help tell you what your actual credit score is while making actionable suggestions on ways you can improve it.
Additionally, you can review your credit report for any details that are incorrect. Once you spot them, you can file a dispute with the different credit reporting agencies. Once they correct your file, you may experience an instant credit bump that can help you get a personal loan when you need it.
It’s important to approach getting a loan with a bit of optimism. For example, you may be dejected because you’ve been rejected from several lenders. Instead of giving up, you should consider that you just haven’t found the right lender yet.
For example, you may get better results if you try to get a loan directly through your current bank. Because the bank knows more about you and your finances, they may be likelier to approve a loan even if you have imperfect credit.
On a related note, you may be able to get a loan through your local credit union. These institutions are here to serve the community and may be likelier to approve you than a bank.
Finally, it’s important to check for online lenders as well. This maximizes your chances of getting the money you need.
Some people who have never applied for a loan online may be hesitant to do so. After all, it can be weird handling money matters with someone when you aren’t sitting across from them.
However, online lenders are very safe because they are subject to the same federal regulations and scrutiny as your local banks. And if we’re being honest, most people who look into online loans have already had difficulty getting the money they need at the local level.
So think of it this way: searching for loans online is just a way of casting a wider net. And that’s one of the best ways to finally “catch” the loan you’ve been looking for.
Speaking of finding something, you may be able to solve your personal loan dilemma by finding a cosigner. So long as someone with better credit is willing to cosign on the loan, you may have an easier time getting approved.
Not every lender allows cosigners, but many of them do. And by cosigning with someone who has superior credit, you can make the lender less nervous about loaning out money.
However, cosigners are responsible for paying the loan back if you end up missing payments. Therefore, it’s important to find someone who really trusts you if you want them to be a cosigner!
Most of the loans you apply for are known as unsecured loans. These are the types of loans that require nothing more than the lender’s trust. However, since low credit scores make lenders less-than-trusting, someone with bad credit may wish to get a secured loan instead.
Secured loans are those that are “secured” by some form of collateral. The most common form of collateral is the title to a vehicle. However, it’s possible to put other valuable items up as collateral for a loan.
With collateral, the lender reserves the right to take ownership of what you give them if you fail to pay back the loan. So if you’re worried about missing payments, make sure not to use anything as collateral that you can’t afford to miss.
If your loan applications are getting rejected due to poor credit history, there are multiple strategies you can do to finally get a loan. And one of the simplest strategies is to seek out loans that don’t require a hard credit check.
Hard credit checks temporarily lower your credit score. Therefore, applying for several loans and/or credit cards in a row can severely lower the score. Basically, the more places you apply to, the lower your score and the lower your chances of getting approved.
When lenders advertise that you can “pre-qualify” for a loan, they still check your credit, but they don’t do the kind of hard credit pull that lowers your score. This allows you to narrow things down to the lenders where you are approved without worrying about further lowering your score.
Our last solution is the simplest yet. If you have a bad credit score, consider only looking at lenders that don’t require good credit.
There are many kinds of next-day loan solutions that don’t require you to have great credit. With these lenders, you can get the money you need without worrying about your credit score dragging you down.
Some of these lenders offer very high-interest rates. Fortunately, it’s possible for you to get the money you need at the interest rate you deserve.
Now you know how to get a personal loan even if you have bad credit. But do you know which lender you can trust to give the best rates?
Here at Fast Loan Direct, we offer personal loans at great interest rates even to those with poor credit. To discover how easy it is to get the money you need, come apply today!