If you don’t have the best of credit scores but you want a personal loan, you are not completely out of luck. It is possible to obtain a loan even with a lower credit score. You just need to know where to look. Surprisingly, personal loans for bad credit can be found in many places.
Of course, before you apply, you should take steps to know your current credit score and do what you can to boost your score as this will help your chances of being approved.
What to do Before You Apply for a Personal Loan
The first step is to get a copy of your credit score and credit report. You should receive a credit score number from all three major credit reporting agencies. Regardless of what the numbers are, consider the middle number your actual score as it will be the closest to the score the lenders use.
Next take a close look at the report itself. Be sure there are no errors. Go ahead and check amounts and account numbers. If you find any errors, you can go online to the credit reporting agency and fill out a form to have it corrected.
If you have time, and you may not if you need the loan right away, pay down any current balances.
Where to Apply for Personal Loans for Bad Credit
Once you have done a little homework, you will have a better idea of your credit score. This information will help when you apply for a loan and talk about interest rates, but the question remains where can you get a personal loan if you have bad credit? Here are a few options for you to check out.
1.) Go online – Depending on how fast you need the loan, you can find many reputable firms online that will be able to get your application in the hands of lenders quickly. But be very careful! There is a big difference between a bad credit personal loan and a payday loan. With payday loans, you still get the money quick (if approved) and you agree to pay a single flat fee. For a two-week loan, that can lead to an annualized rate of almost 400 percent!
Look to a site like BetterLoanChoice.com when considering a personal loan. This firm has an A+ rating with the Better Business Bureau. That matters, a lot.
2.) Talk to a credit union – Credit unions can be one of the best places to obtain a loan if you don’t have great credit. They tend to be a little more relaxed in their lending standards and will often take other factors into consideration, such as how long you have been working.
3.) Talk to your bank – Banks can be a little tougher when it comes to personal loans for bad credit, but there is no harm in trying. If you have been banking at the same bank for many years, they may take that relationship into consideration.
4.) Put up some collateral – While most personal loans are unsecured, meaning there is no collateral, you can attempt to obtain a secured personal loan. That means you will need to have something to use for collateral such as a car, for example. Just keep in mind that if you don’t make your payments you could lose whatever you used as collateral.
5.) Get help from friends and family – If you find that you simply cannot get approved for a personal loan and you don’t have anything to use as collateral, then you might want to consider asking a friend or family member to co-sign. If you have someone in your life with good credit, then chances are you will be able to get a personal loan if they co-sign. Do be careful however because if you don’t make the payments they will have to. This could end a friendship and even damage their credit rating.
Personal loans for bad credit are available, so you shouldn’t let your less than perfect credit score stop you from applying for one. They are a great way to consolidate debt or to use for home repairs or many other uses such as an emergency. The best way to determine whether or not you will be approved is to apply today.
This information was brought to you by BetterLoanChoice
Are you looking for a bad credit loan? Or perhaps your credit is in good shape and you just had an unexpected expense pop up? BetterLoanChoice is an online source to connect people of multiple credit types for personal loans with a lender. Our form is quick and easy. If you’re looking for a personal loan (no matter good credit loans or bad credit loans), click here to get started now!