Let’s imagine the following case – which incidentally, happens to millions of people in the United States -. Imagine that you have high balances on 3 of your credit cards and each one with charges higher than 22%. You will spend your life paying those interests without being able to lower the principal amount. For that reason, you are looking for a loan with a lower interest rate to pay for the cards, but your bank and then a Credit Union rejected it because of your credit. The million dollar question: Is it possible to find a loan that would help save money even with a low credit score? The answer is yes, you may be surprised; but you have more options than you think. I will give you 3 popular ways to find a good loan, even with bad credit.
How to get a loan with bad credit?
Having no credit or having bad credit is a big obstacle to getting a loan because you are seen as a high risk customer who could stop paying leaving the lender with lost money and without being able to collect it. It is simply a fact that until you raise your credit score, you will not fit into the standard loan guidelines that large and traditional banks have to follow. Of course, before applying for a loan, you need to be familiar with your credit history and score, we recommend using the FreeScore360 (for 7 days) services to see your credit score. If you have been rejected for a loan by your bank or Credit Union and do not want to get stuck paying high interest rates, here are 3 alternatives to get a loan:
Use a line of credit on your house
The housing bubble left many homeowners owing more than their homes are worth. But if you have equity (equity) in your property, you could get a line of credit with a low interest and tax deductible to spend as you want. Of course, using capital on the property puts your property in danger if you can’t pay the debt. But if you have reliable income and are disciplined with the payments of a line of credit, it is an economic option for low interest regardless of your credit rating.
Obtain a Person-to-Person Loan
P2P or Person-to-Person loans have existed since 2005. Basically based on an online platform that allows you to borrow directly from a person (or rather a set of people) instead of an institution. This type of loan is growing in popularity because it is a simplified process with a win-win situation for both borrowers who pay low interest rates and investors or lenders who obtain high interest rates and a good return on investment compared to a loan. Borrowers create a loan listing or requirement describing the amount of loan they need as well as the purpose or why they need it. Investors review loan listings and choose those that meet their criteria. Investors or lenders review the information of the applicants or borrowers and check their credit, which is part of the loan listing. While your credit score is still a factor, an individual investor may be more sympathetic to their situation than a traditional bank.
Get a mini loan for the unemployed
It’s very easy, you just have to go to quick credits providers online and find the one that best suits your current situation, in this case unemployed. You need to find a brief summary of the best personal loans for unemployed that are on the Internet, with their requirements, which mostly do not require payroll and can be ordered with unemployment.
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