Author: Tahoe Deanna
You’re in a tough spot. You need some extra money, and you don’t have the best credit. So what do you do? You can’t just sit around and wait for your ship to come in. You need to take action!
Today, I will be unveiling some proven ways you can take to get a personal loan regardless of your credit score.
Understanding Your Credit Score
Before you can start taking steps to improve your credit score, you need to understand what it is and how it’s calculated. Your credit score is a three-digit number that reflects your credit history and overall creditworthiness.
A credit score is often use to determine how risky it is to lend you money, and how much interest they should charge you for the privilege.
A good credit score is anything above 670, while a bad credit score is below 580. Several things can influence your credit score, including your payment history, amount of debt, length of credit history, new credit inquiries, and type of credit used.
If you have a bad credit score, don’t worry – there are still steps you can take to get a personal loan. You just need to know where to look.
Let’s discuss five proven hacks to help you get a personal loan even with bad credit.
1. Shop Around
You might think that your only option is the loan shark down the street, but that’s not necessarily true.
Some legitimate lenders are willing to work with people with bad credit. The key is to shop around. Don’t just go with the first lender you find. Compare rates, terms, and conditions to find the best deal.
Moreover, don’t be afraid to negotiate.
If you find a lender who’s willing to give you a loan, but the interest rate is higher than you’re comfortable with, see if they’re willing to budge. It never hurts to ask.
2. Getting a Co-Signer or Guarantor
Getting a co-signer or guarantor can be a great way to increase your chances of approval if you are looking for a personal loan but have bad credit.
A co-signer is someone who agrees to be responsible for your loan payments. This is a great option if you have a friend or family member who’s willing to help you out and has good credit.
A guarantor is similar to a co-signer, but they’re responsible for the full amount of the loan.
3. Consider a Secured Loan
If you have some form of collateral, you may be able to get a secured loan, which means the loan is backed by an asset such as a car, boat, savings account, or home equity. The advantage of a secured loan is that it often comes with a lower interest rate because the lender has less risk.
4. Go into your Bank
Another way to get a good bargain for a personal loan with bad credit is to go into your bank and speak to a loan officer. Inquire about any personal loan options they may have available for customers with poor credit. Several lenders provide credit-building loans with shorter terms, and smaller loan amounts to aid in the repair of damaged credit.
5. Borrow a Smaller Amount
If you want a personal loan with bad credit, then you can try asking the lender for a smaller amount of money.
Most lenders will be willing to work with you if you’re honest about your financial situation and explain that you’re working on rebuilding your credit. So it doesn’t hurt to ask if you can borrow a smaller amount of money.
You might be surprised at how willing the lender is to work with you. Even if they don’t give you the exact amount you want, it’s still better than nothing.
Conclusion
Whether you’re looking to consolidate your debt, make a large purchase, or just cover some unexpected expenses, don’t give up on your dream of getting a personal loan. There are plenty of lenders who are willing to work with borrowers with bad credit, you just need to know where to look and what to do. Follow the five hacks discussed in this article, and you will be surprised at how swift the process can be.
