When you have a bad credit score, it becomes very stressful to you because you are drowned in debt and it is hard to get any type of financial assistance from financial institutions and traditional banks.
However, this does not mean that since you have bad credit you will never get financial assistance. This is possible by using the following ways:
Avoiding wasting your time by submitting your application to traditional banks especially if you do not own a house. This is because traditional banks are usually conservative and do not want to take any financial risk. They will therefore never approve your bad credit personal loan unless you have fixed assets which can act as collateral.
You can also search for a friendly Loan where you look for a friend or a family member who is on sound financial footing to lend you the money. This is a very easy way of borrowing as compared to other lenders because you will not have to undergo a background or credit check. You may not even need to supply any form of documentation as compared to other loans. All you will need to do is to ensure that everything regarding the terms and interest rates are put in writing and then signed by all the parties in order to avoid any future conflict. The success rate for getting approved with a friendly loan is greater than that for a bank or other traditional lender.
Borrow from a credit union
Since you already have bad credit, it will be good if you can avoid high rates of interest for your new loan. This is because most of the bad credit loan providers charge high interest to the borrowers. You can therefore borrow from a credit union if you have a relationship with them because you will be able to enjoy a much lower rate of interest and finance charges.
Get a payday loan
This loan is available for those who have stable employment. You can be able to obtain this loan easily because there is no credit check involved therefore your bad credit will not affect the loan. All you will need to have is a permanent stable job as well as a checking account which is in good standing. When your application is approved, you can be able to make cash advances from any check cashing stores. However this loan has high interest rates.
Getting a loan from a licensed lender
You will find these lenders if you peruse the want ads of your local newspaper, you can also check the Yellow Pages, or search on the Web. These lenders do background checks in order to prove your identity as well as residency. They operate under different regulations as compared to the regulations found in banks or other traditional lenders. They will also charge high interest rates due to the risk involved.
Pawn Shop Loans
These are bad credit lenders in the market where you can pawn your valuable equipment, luxurious items, jewelries which should cost more than $10,000. You will then get the loan and repay it later.
Approach your employer
You can also approach your employer or a credit union that serves your company. This arrangement will not require any credit check and all you may need is a little documentation which will be required to prove who you are. Most of the bosses in organizations will make loans available because it is in their personal interest as it promotes loyalty and there will also be no worries about where you as an employee work or what you are paid. The loan repayments are convenient as they will be taken out of your paycheck.
If you own a home, you can get a $10,000 bad credit loan if you put your house up as collateral and then negotiate with the lender to get the best possible interest rate.
Consider a joint application or a guarantor
A guarantor or a joint application can help get your application approved because some banks and financial institutions usually allow borrowers to obtain the loan when applied with a co-signers who has good credit.
When considering the type of loan to apply for, it is important to compare features of the loans so that you apply for a competitive option.
Compare Bad Credit Loans
- The type of fees you will be charged with this loan, these fees are the ongoing fees as well as any other charges you will have to pay at the onset.
- The turnaround time which is the time it takes to get your loan approved and then for it to arrive into your bank account. This time usually differs between lenders. It is therefore important to ensure that the lender you apply with is able to get your loan amount to you when you need it.
- The loan repayments and penalties
- Your purpose for borrowing should be clear so that it does not end up messing your credit scores more.
You can apply online as this procedure will remove from you all the undesired hassles which you are likely to be faced with while filling paper forms in a lending institution. Applying online also offers you a chance to come across the bad credit loan lenders around the world and therefore gives you an opportunity to get the best offer by making a comparative analysis between different quotes of loans.
To be approved for the bad credit personal loan you will need to:
- Review the eligibility criteria before you apply to make sure you are eligible. This criteria includes minimum income as well as employment requirements
- Submit all the required documents by confirming the documents needed so that you send everything that is required.
These are the top things you can do to get a $10,000 bad credit personal loan.