Have Bad Credit And Need Money? Follow These 6 Tips
A poor credit score has limited millions of people from getting loans from traditional banks. Banks still require collateral and a good credit score to approve loans as bad credit represents high risks to financial institutions. Fortunately, the financial market has changed over the years to allow borrowers with any credit to access loans.
Many lenders have joined the market to fill the gap created by conventional banks. However, you should be willing and prepared to pay a higher cost for the loans compared to conventional secured loans.
Here are some tips on how to borrow money fast with poor credit:
1. Know your credit history
Do you know your current FICO score? Can you explain your credit history? Although lenders issue bad credit loans, many are interested to find out why your credit score is low. Some specify the lowest credit score that they accept from borrowers. Many borrowers are embarrassed about their past financial issues. Your first step is to know your current situation. Knowing it will help you determine the loans you can get based on the lender's terms and conditions.
2. Consider your current financial status
One way of getting a loan fast is to borrow an amount that you can easily repay. Lenders cannot give you a loan without proof of your ability to pay. Marketing messages make getting a loan sound easy and fast. However, it will be difficult to get a loan beyond your current financial status. Borrowing within your means also helps you avoid making your situation worse. Calculate your surplus every month after deducting normal expenses and savings for emergencies to determine the loan installment that you can pay easily.
3. Get a secured loan
You can easily get a loan if you have collateral. Use your car, land, house, or any other valuable asset. Remember that the lender can sell off your asset if you fail to pay the loan as agreed. Do not borrow money that you cannot repay simply because you have a valuable asset to use as collateral. Borrow responsibility and pay your installments on time. The advantage of secured loans is that they attract lower fees and rates compared to unsecured loans. In addition, they have a longer repayment period.
4. Provide honest information
Lenders reject loan applications from dishonest borrowers. Do not provide false data to increase your chances of approval. Some borrowers tend to overstate their current income or falsify their current employment status. Do not assume that the lender will not verify the information given. Lenders are very cautious about getting all the information they can on their clients. Accept your current status. Provide the correct information to your lender and then negotiate for a positive response to your application.
5. Seek alternative sources of funds
You do not have to apply for a loan from a financial institution. You can borrow money from your friends and family. Some of them will not even ask about your credit history if you have a good relationship with them. However, have a written agreement with them on the repayment terms and duration. A written agreement shows that you are committed to pay the amount borrowed.
6. Get a short-term loan
You can get an unsecured short-term loan from the comfort of your home. There are many lenders online who offer such products. Some of the loans that you can access online are payday loans and installment loans. One advantage of them is that you do not need any collateral to qualify. However, you must have a constant and verifiable source of income.
If you need to borrow a small amount, you can get a payday loan and pay in full when you receive your salary. An installment loan is ideal for higher amount because its payment is spread over a given number of months. You can get an unsecured loan fast by submitting your request here. Complete the simple form and expect a response from a willing lender within a few minutes.