answers to all of your home mortgage questions

« Back to Home

3 Tips For Getting Loans, Even With Bad Credit

Posted on

People always need loans, even if they have bad credit. However, it can be exceedingly difficult for people to get loans if their credit scores are too low, since many lenders interpret a poor credit score as a sign that a person is a risky investment. They will then either refuse to give a person a loan or charge them an exorbitantly high rate. However, there are some options for people with low credit scores to get the money that they need.

1. Try Credit Unions

Credit unions operate in a way that is similar to banks, but instead of an outside institution owning and controlling the money that is in a bank, it is the individual members of the credit union themselves. Most of the time, people in credit unions all have something in common. They might all work in the same field, live in the same neighborhood, or even belong to the same network of churches. They are nonprofit organizations that are dedicated to helping their members get the money that they need for their projects. If you can find a credit union that you could feasibly apply to, there is a much better chance that you will receive the loan that you need. Search for credit unions in your area online for more information.

2. Try a Peer to Peer Lending Site

Peer to peer lending is when an individual lends money to another individual. These loans are facilitated through websites. You can post the amount of money that you need, what you need it for, and the range of interest rates that you are willing to pay back. Your background and credit score will be screened, but these websites tend to have slightly lower standards than your traditional banks. Because the lending is between individuals, you have a better chance of eliciting empathy. These sites are best for loans for a few hundred dollars.

3. Payday Loans

The final way to get a short term loan, even if you have bad credit, is to use a payday loan facility. These are companies that will essentially offer you an advance on your paycheck and then collect their money, plus a little bit of extra money as interest. Their main advantage is that you can get the money you need very quickly.

For more information about any of these institutions and how to get cash now, contact them directly. They will be able to answer any questions you have.