Can You Get a Loan with Bad Credit?
Even if getting a loan with bad credit is quite difficult to do, one thing you need to realize is that it’s not impossible. Yes, the options are fewer and you most likely will be offered a substantially more expensive loan.
And while everyone thinks that a bad credit means you should completely avoid applying for a loan, one thing you must put in your head is that you can still make it right and get a loan eventually. The reality about bad credit as a term is that it is pretty difficult to label anyone who failed to hold on and perform a financial obligation even just for once. Now if you have a low credit score (which literally isn’t bad credit), it means you still have a chance to get a loan, but be careful because you could be a target of finance institutions that will lure you into signing a very expensive trap. It is an open secret in the industry that many loan getters are made to believe that there really are no options available for them.
Be reminded that term “bad credit” could actually mean different from one lending institution to another. What this suggests is that some of them will turn you away in an instant while others may be more considerate.
Give Credit Unions a Try
You must understand that credit unions, at least some of them, will certainly be more than willing to work with you. Some of the larger banks out there will simply look at your credit score and proof and income in figuring out if you’re qualified for a loan. Since credit unions are smaller than banks, they tend to be a little bit more considerate.
Another more viable option compared to that of a bank is peer to peer lending services. The best thing about P2P lending is that they don’t have very strict rules and won’t charge you with so many confusing overhead costs. As the term suggests, you’re basically borrowing money from a peer, or an individual who will be a lot more understanding but will also throw in significant interest rates along the way.
You should also know that P2P is just one of many other lending opportunities online that do not involve banks, and if you know where to look, you’ll eventually figure out that there are people out there who are more than willing to give you a chance to get a loan you deserve without labeling you with a negative image just because you have bad credit.
Finally and if all else fails, your last resort is obviously your family and friends. Keep in mind though that even if you’re dealing with your own family or trusted friends, it still is essential to put everything in writing.