Getting approved for a loan can be difficult if you have a bad credit score. Whatever the reason for your poor credit history may be, you can bet that approaching financial institutions for the the usual loan options will end up in one rejection after another. In cases where you do get approved for a loan, you can expect higher than standard interest rates.
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Not everything is bleak for people with poor credit scores though, because there are several loan options you can still choose from. Below are 3 such options, with each option equally sound, depending on your particular circumstance.
1. Bad Credit Loans – There are plenty of bad credit loans in the market. You’ll find both secured and unsecured bad credit loans and loans with fixed and variable interest rates. The good thing about these loans is that even if the financial institution already knows of your bad credit history, you can still be approved for a bad credit loan. The problem is that you in most cases, you can expect relatively steep interest rate. Furthermore these loans will still look into your credit history, so that there’s still a chance of getting disapproved. You should also be picky when signing up with a lender, because bad credit loan scams are not unheard of.
2. No Credit Check Title Loans – If you need money really fast, then a no credit check loan is the way to go. Since these kind of loans do not require a credit check, loan approval is almost instantaneous. This ensures that you can get your cash in under an hour. The only issue with no credit check loans is that they are usually title or secured loans, which makes complete sense since lenders need the security that your title (usually car titles) brings since you don’t even have to go through credit check. This means that you obviously need to have a vehicle to be able to get approved for this loan.
3. Look for a co-signer – You might be approved for a regular loan by lenders even with a bad credit score IF you have a co-signer. Having a co-signer with good credit history lowers the risk for the lender, making them more amenable to approving your loan. Of course, the biggest problem with this set-up is finding someone who’ll be willing to enter into such an arrangement for you, after all your co-signer will be the one taking care of loan repayments if you end up unable to pay your monthly dues.
Jessica Moore is a professional blogger that provides personal finance advice. She writes for TitleBucks, a leading title loan company.