5 Best Options for
People With Poor Credit
Having a poor credit score means you are a high risk customer and not credit worthy to credit unions, banks and other money lending institutions. As such, you'll tend to think that you can never get a loan for whatever reason you have because money lenders greatly depend on your credit score to calculate your loan terms. However, if you have a poor credit score and need money, here are 5 options best for you:
#1 Loan From a Friend or Family Member
Getting a loan from a friend or a family member does not depend on your credit score. All you need to do is convince him/her that you are in dire need of their support and that you'll finally repay. However, such a loan may put an important relationship at a high risk if the loan is not paid or agreement not adhered to. Only ask your friend or family member to help you if you are sure you'll pay promptly.
#2 Peer to Peer Loans(P2PL)
Having existed since 2005, these loans are a great option for those who have had a dark credit past. With this option, you can get loans online from any peer to peer lending site you are comfortable with. Such sites include Peerform, Lending Club, Prosper and several others.The sites will help you obtain loan from individual lenders who do no mind your credit score unlike banks.
#3 Credit Union
Though they also depend on your credit score, credit unions can easily lend you money as compared to banks. Their standards are a little bit relaxed. You eligibility to join such unions could be as simple as just residing in a given location. If you are not a member to one, join those operating in your area.
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#4 Home Equity
If you own a home and have equity, you might consider borrowing a loan popularly known as a HELOC ( home equity line of credit). Going for this option means you are putting your home as a collateral and makes it easy for you to get a loan with your poor credit score. However, interest rates on this line of credit tend to run higher compared to other lines.
Annual Percentage Rate
This is what you will pay after the incentive period runs out on what you purchase. The rate will vary according to the different type of credit cards. It is upon you to shop around and choose the best that works for you.
#5 Co-signed Loans
With this, you simply get a friend or a family member with a better credit score and borrow a loan by having him/her co-sign for the borrowing. If you fail to pay, the person you co-signed with is expected by the lender to settle the debt. However, if you both default, credit scores of either party will suffer.
Getting a loan with a bad credit score is possible. These are the top five options you can consider if you have issues or low credit score. However, try as much as possible to up your score and pay your debts timely to avoid credit issues.
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