How to Get Money Loans When You Have Bad Credit

Many individuals may find that they are at a standstill when they are in financial trouble. This may be due to not having a great credit score. Typically, credit scores fluctuate throughout the year depending on an individual’s payment history. It is never suggested to carry a balance of more than 30% on any credit card that is held. Now, those people who are struggling financially may feel that they are in quicksand and slowly sinking without making any headway on their credit card payments. There are options so do not worry.

Home Equity

Although the economy was booming some years back and took a dive which left an awkward housing bubble for homeowners who are facing paying more than their home is actually worth on the market today, the home does still have equity. For that reason alone, many people can be approved for a low interest line of credit that is not only tax deductible but can also be spent any which way that is needed! This can be helpful to many homeowners because they do not have to worry about applying for a high-interest rate personal loan or one that is more specific in the way it can be spent.

Credit Unions

The great thing about credit unions is that they are actually owned by their members but still are a bank. Members of credit unions generally live within a certain geographical area and work similar jobs, which is a great benefit to those who have access to the credit union. They tend to be more understanding of financial situations and since members own them, it is considered a non-profit organization that is ‘allowed’ to offer lower fees and high quality customer care.

Peer to Peer

Peer to Peer lending is a growing trend that really took off about nine years ago. It can be looked at as a great situation for both parties involved whereas the borrowers pay low interest rates and investors pay higher ones. Breaking this down into numbers – a borrower may pay as little as 6.5% and the return on that would be a whopping 10.5%! With this type of lending, borrowers will post something about what type of loan they are seeking online and then the investors have the option of scrolling through and choosing whom they would like to work with. Although this may not be the most efficient way of receiving money, the option is available.

Family and Friends

If you have tried your luck with peer to peer lending and have no takers, you can always ask your family and friends. Generally there is someone who will be more than willing to help you out if you are not the type of person who asks for financial assistance all of the time. Depending on your particular situation, you may be left feeling slightly helpless and embarrassed but there is not a reason to be. It may be harder to swallow pride and ask for help – but just know that you are not the only person that is struggling financially. If your friends and family are worried about repayment, there are various sites the can be utilized to create contractual and promissory agreements that are actual legal documents.

Co-Signing

When all else fails, try to think of someone who can co-sign on a loan for you. You would still be considered financially responsible but you may require a ‘back-up’ to receive loan approval. Most of the time if your co-signor has better credit and a steady income, you will more than likely be approved. Having a co-signer is just a form of security for the lenders.

These are all great options for those individuals who do not have great credit scores. Do some research and never give up, there is always an option available.

loans - 27 Jan, 2014 - No Comments