Don't waste your time. Get a loan online.
get a personal loan with bad credit is not an easy cake, you have to consider few things before looking for the options.
First Question: Do you think you Can Get a Personal Loan With a Credit Score of 550?
And the most accurate answer to this question is “You may be!”, However the catch is you might not be get approved for larger amount and/or for best APRs which are generally very different for the people with good credit score.
So basically you got two options either you can look around for alternative option for borrowing what you are looking for or you might consider working on improving your credit score before applying to any lenders.
way to get a personal loan with bad credit
Most lenders requires your credit score to be in range of 600 for taking decision to approve you with less risk factor. so your chances of getting approved with bad credit score is less. however some lenders work with poor credit as well so you got following options in order to borrow money with bad credit.
Don't waste your time. Get a loan online.
- Online Lenders : online lenders have few steps of approving or say some kind of preapproval so you just need to apply to their simple online application. that does not even affect your credit score.
- Credit Unions : Credit unions are not-profit organizations which operates in financial area with main goal of helping people meet their financial needs. Credit Unions serve their members who have accounts in credit union and they are more flexible as compared to traditional banks when we talk about borrowing with bad credit. One can often be a Credit Union member based on which city he/she in living, nature of their work or even by making small donation to certain non-profit organization.
- Community Banks : This is just similar way to that of credit unions, if you are regular customer of community bank then you may directly ask the banker loan option they have, And you will find surprising how banker will work with you based on your established relationship with them.
There are few more options out there but you must be very careful if you choose to opt for any of the following.
- Payday loan : Payday lenders do not check for your credit score, this basically means they do not perform hard inquiry for your credit score from 3 big credit bureaus. hence if will not affect your credit score and you can borrow money from them. Yet most people don’t understand payday loan exactly they are mean to be used for very small tenure if you falsely use it then it might be big trouble for you in long run. They come with higher APRs approx 400% and above, but the money lend through payday option is for approx two weeks i.e. your next pay check so higher APR does not burden you a lot and fetches you out of your emergency cash crises. just pay it in full on your next pay day, roll over payday loan is not so wise decision one take at any cost, so use it wisely.
- High-interest installment loans and lines of credit: Some lenders offer installment loans and lines of credit you may qualify for, but charge high fees and interest rates that make them difficult and expensive to repay.
- Title loans: If you own a vehicle, you can use it as collateral to take out a loan. Title loans are risky, however, because you risk losing your vehicle if you can’t make a payment on time.
How to Improve a bad Credit Score
Improving your credit score requires your patience and action. as negative factors which dragged down your credit score needs to be vanish when you are working positively on your credit improving process. so you must be patient and you don’t need to be look like desperate to improve it. so chill and work constantly at least a year and your credit score will start raising gradually.
- Pay your bills on time : Making payments on time is most important. Your credit score face some positive points for this. Once you are late for the payment suppose for 30 days then lender could report that late payment to credit bureaus, so that counted as negative, if you feels your monthly expenses doesn’t meet your months end and you will be short hand for paying some bills then contact respective creditor or lender and tell your situation they might consider this and won’t report in first place saving your credit scores falling that time. you must keep your promise and pay him as per your deal with that special situation. Don’t repeat the pattern this hack is just for some medical emergency may be on eto 2 times.
- Lower credit card’s credit limit utilization : If you have credit card and revolving credit line debt, paying down your balances could lower your credit utilization and help improve your credit scores. This can be a quick way to improve your credit scores if you currently have high credit utilization.
- Use services like Experian Boost : Experian Boost is a free service that lets you connect your bank account and add on-time phone, utility or streaming service payment. such payments generally won’t reported to credit bureaus but with this service they are reported to experian credit report which is one of the big three credit bureau.
- Open new account only if required : If you have few credit history you want to take credit builder loan to help you build your credit. making on time payments increases your credit score. and one caution here do so only if you are 1000% sure that you can repay on agreed term on time every time through out the loan term. and one more thing opening many such accounts in short period of time will affect negatively to your credit score.
Improving your credit isn’t only important to get a personal loan with bad credit. A good credit score can also save you money on insurance in many states, make renting a home easier, and keep you from having to pay security deposits to open new utility accounts.
Summarize all this activity and you will find your self in top 20% people whom lenders actually wants to lend and offers best rates and higher loan amounts. and there are lot less chances of getting rejected once you really know how to get a personal loan with bad credit.
