Looking to take a loan with a bad credit score?<\/p>\n
The good news is you can, the bad news is you may have to pay a higher than average interest rate.<\/p>\n
Having a bad credit score isn\u2019t a death sentence. Whether it\u2019s a job loss, bad economy or mismanagement of funds that has led you to have a bad credit score, bad credit doesn\u2019t have to follow you forever.<\/p>\n
Loans for bad credit may be hard to find, but that doesn\u2019t mean you can\u2019t access one.<\/p>\n
Here are tips on how to fix your bad credit score and nine of the best loans for bad credit.<\/p>\n
Fixing a bad credit score doesn\u2019t happen overnight. It needs a lot of discipline and commitment.<\/p>\n
Follow these tips to restore your credit to a good score:<\/p>\n
The first step to fixing your bad credit score is knowing your exact position. There are so many online tools that you can use to get your report.<\/p>\n
While at it, make sure you confirm that there are no errors or fraudulent activity. Fixing these discrepancies can raise your credit score.<\/p>\n
Late payment of bills kills your credit score. Try setting your bills on auto-pay to avoid missing deadlines and further lowering your score.<\/p>\n
Taking a loan when still in debt isn\u2019t a good idea. Nonetheless, make sure you maintain a\u00a0credit utilization ratio<\/a>\u00a0(outstanding balance vs. your total credit limit) of not more than 30 percent.<\/p>\n
Having an account open for a long period of time lengthens your credit history which boosts your score. You can use this account to pay small bills.<\/p>\n
Applying for a lot of credit cards and getting rejected can drag down your score. Resist from applying for a lot of credit cards at the same period.<\/p>\n
Now that you\u2019ve taken a step to fix your score, the next step is figuring out how to get a loan with your score.<\/p>\n
Here are some tips to consider.<\/p>\n
This information is usually used to calculate your credit score. It also affects your odds of a loan approval loan and the terms you\u2019ve qualified for. Make sure your credit report is accurate.<\/p>\n
As mentioned before, improving your credit score even slightly raises your chances of getting approved for\u00a0personal loans<\/a>.<\/p>\n
Different lenders offer varying interest rates and terms. Don\u2019t settle on the first loan you get approved for. A lender may offer you a loan with a 21 percent annual rate, while another may offer you the same loan at 17 percent.<\/p>\n
Not all loan features are calculated equally. You can\u00a0find and compare loans<\/a>\u00a0using our online tool.<\/p>\n
There are two main types of loans you can consider \u2013 unsecured and secured loans.<\/p>\n
These are mostly used to refinance high-interest rate debts, for example, personal loans. They\u2019re usually more difficult to obtain.<\/p>\n
These types of loans are usually secured by collateral and are a great alternative<\/p>\n
to unsecured loans. They offer lower interest rates making them more convenient for borrowers with bad credit.<\/p>\n
As much as you may be desperate for a loan, some aren\u2019t worth taking.<\/p>\n
These include payday and auto title loans. These are usually short term loans with very high interest rates and fees. They devastate customers by charging annualized interest rates of up to\u00a01.5 percent a day<\/a>.<\/p>\n
You can now consider this list of lenders and what they have to offer.<\/p>\n
Their loans can be used to cover emergency expenses and consolidate higher interest debts.<\/p>\n
When reviewing your application, they not only consider your credit score but also your credit health and employment status.<\/p>\n
Credit unions are like banks, however, they don\u2019t evaluate you solely on the basis of credit score.<\/p>\n
To get a loan, you must become a member of the union. You can search for credit unions in your locality or at your workplace for convenience.<\/p>\n
To be considered for this type of loan you\u2019ll have to offer an asset (home or car) as collateral.<\/p>\n
Lenders will likely give you a loan because they\u2019re legally allowed to acquire your asset in case you default.<\/p>\n
Consider applying for a loan with someone with a good credit score. The interest rate for the loan will be calculated based on the credit rating of your co-signer.<\/p>\n
Keep in mind that your co-signer will be equally responsible for the payments.<\/p>\n
You may want to consider individual lender loans. Since they aren\u2019t established financial institutions, they may overlook your bad credit score. Even better is the fact that you\u2019ll agree on an interest rate with the lender.<\/p>\n
If your family and friends are well off, you can take a soft loan from them. In most cases, you’ll get flexible repayment terms and won\u2019t have to pay interest.<\/p>\n
However, it\u2019s always a good idea to have the loan agreement in writing.<\/p>\n
This is a reputable financial lending broker, working with some of the best lenders in the country.<\/p>\n
They do offer bad credit loans, however, you\u2019ll have to give a clear account of your past defaults.<\/p>\n
HandyCash understands that bad credit scores are always not due to bad financial decisions, but unforeseen circumstances. That\u2019s why they\u2019re focused on offering immediate bad credit loans at reasonable interest rates.<\/p>\n
With over three decades in business, Crester Credit is one of the most trusted bad credit lenders in the country. They offer loans at affordable rates and set up personalized loan repayment plans for every customer.<\/p>\n
Remember to keep your expectations realistic. You\u2019ll undoubtedly receive higher interest rates on loans for bad credit.<\/p>\n
Here\u2019s a guide<\/a>\u00a0to help you keep a good credit even if you can\u2019t pay everything on time.<\/p>\n\n