Tips for Getting Loans With Bad Credit Score Ranges

What if having bad credit didn’t have to keep you from getting a loan?

If you have a credit score 579 or lower, then you have a bad credit score. This means that when you get approved for certain loans, you may only qualify for those with higher interest rates. In some cases, a bad credit score may keep you from getting any kind of loan.

Fortunately, it’s still possible to get loans with bad credit score. Don’t believe it? Keep reading to discover our top tips for getting the money you need even if your credit is less than perfect.

Monitor Your Credit

Be honest: do you know what your credit score is and what is affecting it? For most people, the answer is “no.” If that sounds like you, then your first step is to sign up for a free credit monitoring service.

Such a service can help you discover what credit score you have with the major credit reporting agencies. Moreover, you can discover if there is anything incorrect on your file. After you report these inaccuracies, you may be able to instantly improve your credit score.

Finally, these services often offer tips for increasing your credit score. If you have the time, following as many of these tips as possible can boost your score before you apply for loans with bad credit score or even various types of credit cards.

Do Your Homework

When you need to borrow money, the internet makes it very easy. In fact, you’re usually just a click away from applying for things like payday loans. Before you make that click, though, it’s important to slow down and do your homework about various lenders.

One way to do this is to shop around for different offers and see which lender can offer you the best interest rates on a loan. This isn’t the only factor you need to focus on, but for most borrowers, the interest rate is the most important thing, and the lower, the better!

In addition to searching for online loans, it may be worth seeing what kind of rates you can get through local banks and credit unions. And if you are already a member of these institutions, it might help you qualify for a loan even if you have a poor credit score.

Discover If You Can Get Pre-Qualified

Speaking of qualifying for a loan, it’s worth taking the time to see who offers “pre-qualifying” or “pre-approval” options. In most cases, this helps you discover whether you qualify for a loan without the lender performing a hard credit check.

Hard credit checks, also known as hard pulls, are ones that may temporarily lower your credit score. If you already have bad credit, this can be very dangerous. In the worst-case scenario, you may not qualify for the loan and you are stuck with an even lower credit score.

If you can get pre-qualified, you can keep this from happening. And discovering which lenders do and do not offer pre-qualification options may help you narrow down who you wish to borrow from. 

Consider Getting a Cosigner

Some of the solutions to getting loans when you have a bad credit score are simpler than others. For example, if your own credit is very poor, you could always get a cosigner for the loan.

When someone cosigns a loan with you, then the loan is in both of your names. And if the other person has better credit than you do, it can increase your chances of getting approved.

Just make sure to find a cosigner who trusts you. Because cosigners are often left holding the bag because someone stops making payments, many people are hesitant to serve as cosigner.

Explore Secured Loans

Most of the loans you have applied for have likely been unsecured loans. This means the lender determines whether to approve the loan based entirely on your credit score. If you are having trouble getting approved for such a loan, you may be likelier to get approved if you pursue secured loans instead.

A secured loan is one that is “secured” by some type of collateral. For example, it’s not uncommon for people to use things like cars and homes as collateral for borrowing money.

This gives the lender peace of mind because they know that, should you stop making payments, they still get something out of you. If you put your car’s title up as collateral, for example, they’d get your car. Because of this, it’s important to be very careful when pursuing secured loans and to never miss any payments.

Seek Lenders Without Credit Requirements

Most lenders rely on a credit check before they loan any money out. However, this is not true of all lenders. Therefore, one solution to your problem could be to only seek out lenders that don’t have any credit requirements.

Such lenders are usually ones that specialize in “high-risk” loans. Such loans have higher interest rates. This is because the money is typically loaned out to those who would normally be considered risky to lend to.

Discovering which lenders don’t require credit checks and which other ones offer pre-qualifying or pre-approval is an important part of doing your homework. The more options you have, the more likely you are to get the money you need.

Avoid Getting Too Many Credit Checks

Earlier, we touched on the topic of the hard credit check. And that brings us to our final tip: whatever you do, try not to get too many credit checks in a short period of time!

As we discussed, each hard credit check can lower your credit score. And unless the lender offers pre-approval, then each check is a hard credit check. If you want to protect your credit score, it’s important to find the right lender before you apply.

Get the Best Loans With Bad Credit Score Today!

Now you know how to get loans with bad credit score. But do you know who you can trust to get the money you need?

Here at Fast Loan Direct, we’ve made it easy to get the money you need without a perfect credit score. To see how easy it is, come get a quote today!