Emergencies don’t judge anyone based on their credit score. Everyone will have to deal with their own share of the problem that life throws at them. And most of the time a personal loan becomes a necessity of the entire problem.
When life gives you lemons, grab a personal loan and relax. A personal loan is needed whenever we face an unexpected situation, be it be medical expenses, pending debt, and home improvement, or an expected situation which can’t be further delayed like a wedding, maternity or vacation. A personal loan gives you anything between $500 to $35000.
Many times, the chances of getting rejected for a loan approval is directly proportionate to your credit score. A person with an excellent or a good credit score has a higher probability of loan approval than a person with poor or bad credit.
Hey, I don’t judge you, but your lender might. Have no fear, when your friend Every buck Counts is here. Having a bad credit is not the end of your personal loan, and we will make sure that you know your options before all the hope is lost.
Why is it difficult to get a loan with bad credit?
Most of the time a lender approves higher credit score first, because of the fact that an excellent credit score means that the borrowers are paying their due on time and are most likely to do so in the near future. Whereas, your bad credit score is the result of some missed payments and overdue bills in the past, which although doesn’t say you are likely to repeat the same mistake again but still lender are more aligned to higher credit scorer.
Where to look for a personal loan with bad credit
Personal loans have evolved over the recent times, and you can found them in both the side (online and offline). If you are to follow the traditional approach the bank is your way, but, your chances of approval are less.
Below are the alternatives to traditional banks, you can look forward to.
- Apply to Credit Union: Credit Union are very similar to banks but are able to provide personal loan even with a bad credit. But, loans are available to its member only. One of the merits about credit union is that they take every into consideration, the place you live, your work, your education rather than just your score.
- Online lender: As time changed, more and more lenders are choosing an online platform to give borrowers the comfort in taking a loan from their home itself. There are lenders that have to cater themselves in providing the loan to bad credit scorer only.
Check Points to Cover
- Get a co-signer, if you can: Having a co-signer with you increases your chance of getting approved, and a co-signer with good credit history makes it even it better. They can be your family or friends and should be known to your problem.
- Avoid Payday Loans: Payday Loan tends to have a higher interest rate compared to any other loan. Getting a payday loan with bad credit can result in a bad move. Look at this way, you have a high-interest rate, along the principle amount to pay in a shorter period of time. Instead of getting out of the loan, you could be trapped in one.
- Get a secured loan: Personal loan comes with two options – secured or unsecured. Although, getting a secured loan means putting your asset as a collateral but, this also gives borrowers with bad credit a higher chance to get approved.
Best Personal Loan for Bad Credit
The best part about CashUSA is the loan amount range it provides for bad credit scorer. From as little as $500 to $10000 so you won’t have to look for a payday loan, instead, you can opt for this personal loan.
With its quick and simple online process, the chance to get a personal loan from your home is amazing and adding the criteria of all credit are accepted, makes CashUSA one of the best sites for bad credit borrowers.
Loan Amount: $500- $10000
APR: 5.99% – 35.99%
Loan Term: 3 – 72 months
The personal loan site which is customized for bad credit. With over 20 years in the market, you can surely guess that loan process is secure and beneficial. They know that emergencies can happen to anyone and thus their prime concern is to help the borrower with less than a perfect score.
With no application fees, badcreditloan also stands as a prominent site to consider when looking for a personal loan with bad credit. Not to mention, the minimum requirements it needs – you only need to be 18 years old or more with a steady income and checking account.
Loan Amount: $500- $5000
APR: 5.99% – -35.99%
Loan Term: 3 – 60 months
Getting a personal loan with bad credit is possible if you look at the right way. Yes, there are few things to consider when getting yourself a personal loan and few pros and cons to look out for. Remember that getting a loan will impact your score if you are not able to pay it on time.
Try to build your score and before taking out the loan, ask yourself, whether you want to take this loan or not. Otherwise, you will only hurt your credit history or make it worse.
Author Bio: Shubhi Saxena is an aspiring writer who enjoys writing articles that help people find new ways to improve their finances as well as on budgeting and money making ideas. She is a well- researched and knows how to spot trends, providing invaluable insight to her readers. Shubhi’s biggest talent is her ability to inspire, and the medium she chooses for that outlet is her writing. When not working, you will find her traveling, reading and learning new things so as to evolve her ability to write a story that heeps your reading.