At times, the struggle is real when it comes to our finances.
Our income can change with a new job offer in an instant. But, our credit scores won’t change overnight.
Our credit scores aren’t a reflection of our current financial security. But, they can affect important things such as getting a loan for a car or a home. The good news is you can get a loan for bad credit.
A “bad” credit score is below 579. If you have a credit score within this range you may find it difficult to get a loan without a cosigner. But, don’t despair!
There are ways to get reliable loans and to improve your credit score. Read on to find out more about securing reliable loans with bad credit.
Bad Credit? Reliable Loans You Should Know About
Lenders use our credit scores to determine how risky it is to provide us with a loan. Traditional loans may come with lower fees and interest rates, but nontraditional loans can be similar to or better than credit card rates.
Explore the following reliable loans you can secure with bad credit.
- Credit Unions
Belonging to a credit union is a great asset. These institutions are not-for-profit which means they may be able to give you a loan with bad credit.
Most will also be more willing to work with you if you have an account with their company. As your lender, they will be able to view your recent transaction history which improves your chances of securing a personal loan.
- Online Peer-to-Peer Lending
Online “matchmaking” websites make peer-to-peer lending possible. These websites match investors with businesses and individuals to receive reliable loans. These loans typically have lower interest rates and some require collateral.
- Payday Loan
A payday loan is a reliable way to get a loan quickly. These types of bad credit personal loans are usually best for emergencies and making ends meet between paychecks. They usually have higher interest rates and must be paid back on time.
- Online Lenders
Online lender requirements vary by company. But, most bad credit personal loans require you to have an income and a checking account. When applying for one of these loans, compare and contrast each lender’s interest rates, fees, loan length, and monthly payment.
- Community Banks
Another option for a reliable loan for people with bad credit is to go to a community bank. Community banks are smaller financial institutions that can be more flexible with their loan terms.
Smaller banks will also be more willing to offer you a loan, especially, if you are positively impacting the local economy. For example, if you plan to open a business in your area. A community bank can also offer a wide range of products and services which can help you to get the loan you need with your current credit score.
Researching Reliable Loans
Before signing the dotted line on any loan, thoroughly research the reliable loans you’re interested in. Make note of the fees, interest rates, and the contract before making your final choice.
Want to learn how to improve your credit score? Check out our blog post to learn more.