Having bad credit is a tough spot to be in. You might feel like there are no options out there for you, and if you have already tried to get a personal loan with less than stellar credit, then you might have figured out that getting a loan is not so easy with a poor credit score.
The good news is that if you find yourself in a pinch, there are still options out there that can help you get a loan with a not so great credit score. Especially considering that there are a few different reasons why you might need some quick cash and in a hurry. There are quite a few options available for people who find themselves in this sticky situation. However, not all of these options are equally as impressive.
Check with Your Personal/Local Bank
In many cases, a local branch with which you already have an account is more willing to work with you than a national bank. Especially if there is a credit union located in your area, you are likely to have better luck with them than with any other financial institution. Especially if you have a checking or a savings account with them, the bank will be able to see your history in those accounts which might help your case.
Rates for Bad Credit Loans
When your credit rating reflects a low score, it is typically as a result of making bad financial decisions in the past. However, a bad credit score can be reversed and improved upon; credit scores can be improved quite quickly. But how do you go about reversing a trend?
Well, for starters, there are several types of loans for which you can apply all of which fall under the umbrella title of ‘bad credit loans’. Loans are typically installment loans or cash advances and overdraft, and all will have strict conditions to which the borrower has to adhere.
Additionally, there are many lenders that operate in this particular market, all offering a plethora of loans for debt consolidation with many different rates of interest depending on the amount to be loaned out, the loan period and the risk to the lender. The only way you can know which lenders offer the best loans for bad credit and which lender is best suited to your particular financial circumstances is by doing research and undertaking due diligence.
Regardless, these poor credit decisions will lead most lenders to the conclusion that lending money to you is a risk for their establishment. While this may or may not be true, it requires the lender to be more cautious with their money. Usually, lenders who are willing to lend money to a person with a lower credit score will choose to attach much higher interest rates to those loans.
Payday loans are extremely high-interest loans that tend to have no credit check tied to them. While they do not have a credit check, they tend to target people who have very low credit and little to no odds of getting any other financing. These places require payment in full plus interest on the date of your next payday. Most financial advisors would advise against a payday loan if at all possible.
Although your focus should ultimately be on maintaining a higher credit score so that you can have better options if you need a loan in the future, there are still options available if you have to ask for cash now. Sometimes, you have to do something in order to keep your family afloat.