Tips on How to Get Personal Loans When Your Credit is Bad
If you have a poor credit score and you need money in an emergency, it can be very difficult to know what to do. Normal means of borrowing are usually not available and so there may be very few choices for places to get personal loans from. There are things that you can do though.
Check Your Credit Score
It is important to check and see whether your credit score is correct. You may just assume that it is, but there may be errors in it. It is easy to have a look at your credit score and it does not reduce your score if you look at it. Check that all of the listed items are correct and if you find anything on there that shouldn’t be, get it corrected. This may not help you in the short term, because it will take time to change it, but it is worth doing nevertheless. It is also worth trying to improve your credit score, in case you need to borrow again in the future. Paying bills on time and paying off debts will help with this.
Use Credit Unions
A credit union is a non-profit organization that works similarly to a bank. They may be more likely to lend to a person than a bank, although they still need to break even and so will not take huge risks. Find out where your local one is and make an appointment. You will have to have a face to face interview and this could be in your favor as you will be able to put your case forward and explain how you plan to repay the loan.
Ask Friends and Family
If you need money fast then asking friends and family can be a quick way of getting some. This may not be something that you want or would like to do, but if it really is an emergency, then it is likely that they will be happy to help you. Of course, they may not have the money to give you. If this is the case then they may be able to help you by co-signing a loan agreement with you. They will need a better credit rating than you though and they will act as a guarantor so if you cannot make the repayments, then they will have to.
Peer to Peer Lending
Peer to peer lending is almost like banking without the bank. There are people who are willing to give money to those that need to borrow. They will not lend to just anyone though, but they may be more prepared to take a risk. The loan may be more expensive, but it could be your only choice.
Cash Advance or Payday Loan
This type of loan normally requires no credit check. However, you will need to have a monthly income to show that you can pay it back. Normally you will be lent a small sum of money for a few weeks until you get paid when it is expected that you will pay it back in full plus the interest. These can be expensive but they are quick to arrange and therefore can help you out of a tight spot.