Can I Get a Loan With A Bad Credit Score?
Your credit score has gone down yet you still are in need of a loan. We have all been there! However, in this stressful time, you can relax knowing that you still have several loan options, despite having a poor credit score. Here is how to get the loan that you need despite your credit is less than stellar.
Check Your Credit Report
While you may know that your credit score is not so great, you should assess your entire credit report before looking into any loans. There may be mistakes on your credit report that you can get fixed, helping your score go up. In fact, there are mistakes on most credit reports so it definitely pays to look yours over. Call the credit bureau and dispute any marks on your report that aren’t accurate. Even if you can get your score up just a few points, that will help you in the loan process.
There are lots of different online lenders that you can choose from, many of which will give a loan to those with bad credit. Look online and compare loan options, reading carefully the loan terms and the score that is required before you apply (never apply for a loan until you have read the minimum required score or you may get more marks against your credit score if denied!). When you find a loan that you qualify for, gather all the information you need and apply. Online loans are great as you can complete the entire application process from your computer, getting the cash that you need quickly and easily.
Take Out Small Amounts
When you have poor credit, you may not be able to secure a large loan. However, you can use smaller loans to your advantage. Take out a small loan and then pay it off quickly, on time or early if possible. When you pay off small loans, you are proving that you can pay loans in a timely manner and you will increase your credit score. If you need another loan, do the same process again as this will boost your credit while giving you the cash you need in the meantime!
Talk to Your Bank
If you are a member of a bank and have a checking or savings account already established, your bank may be able to help you get a loan. Talk to a bank representative and be clear and honest about your credit and what kind of loan you need. They may be able to help guide you toward an option that will get you cash despite your poor credit score.
Ask Family and Friends
If you are not having luck finding a loan you qualify for through an online lender or your bank, consider asking family or friends for a loan. Put the terms of your personal agreement in writing so that all parties involved know what to expect. Be sure to pay the loan back based on your agreement and, in the meantime, work on increasing your credit score.