No credit or bad credit makes it challenging, but not impossible, to, for the most part, get a loan. There are a lot of reasons why people might need to borrow money. However, if you have bad credit, it can be tough, since improving your credit score can, believe it or not, take years.
Luckily, there are many options that you can do to get the best installment loans for bad credit or other loan categories that might suit your financial needs. With that said, even if you do not have an impressive credit history, several financial institutions offer a personal loan that will fit your needs.
Additionally, some of these institutions can even inform you if you are eligible without a hard credit check, saving you from making your credit score more severe. So, if you do not have the time to fix your credit score, look for a loan from the listed sources below. Read on!
Family and Friends
If you don’t want to shop around looking for repayment terms and interest rates you can afford, then why not borrow money from family or friends. Well, it may be risky from a relationship standpoint; it still makes sense from a loan-anxiety and financial perspective.
Why? It is because it’d be much easier to earn approval and a change in terms. Friends and family are not likely to, for the most part, situate you through a brutal process and perhaps would reduce the interest rate charged than what you’d obtain from lending institutions that offer bad credit loans.
But if you are planning on borrowing money from your family or friends, ensure to consider and think about what will happen if you fail to pay. Failure to pay a loan to a close associate or a relative can damage relationships in ways that go somewhere beyond a poor credit score.
With that said, you should treat any loan from your family or friends as if it is a crucial business transaction between you and the lender. Meaning, it must be legally recorded with clear documentation. Also, make a written contract, to steer clear of future problems, that includes the interest rate and loan terms, as well as the consequences if you can’t repay the loan.
Credit Union
Credit Unions are either community-based or associated with your employer. This loan might be willing to make a judgment and ignore a poor credit report about whether it’ll allow you to borrow money based on your promise to pay and character.
Think of a credit union as a small community bank from before. The best advantage of a credit union is the interest rate ceiling of eighteen percent, which works to anyone, despite their credit score. A parallel loan from a bank could, for the most part, charge you at least thirty-six percent interest.
Most people can qualify and be eligible for a credit union loan. When you join, you can situate yourself for better loan terms, despite your credit score.
Online Personal Loans
In this digital age, you can access online personal lenders to loan you some money. Online personal loans, for example, Credit Ninja, is a new industry that has built and established an option for consumers with low credit scores.
Online personal loan lenders are fundamentally banks without offices. Nevertheless, they work online and provide bad credit loans for home repairs and debt consolidation. The best advantage of this loan platform is that they work fast. Meaning, they can make a judgment in minutes and wire money in an account within a couple of hours or days.
A lot of these lenders have no prepayment penalty or application fee. An online personal loan application is straightforward and simple to fill out. The important thing to take note is that credit scores are, more often than not, only a part of the process of making decisions.
Therefore, it can be a great option if you have no credit or bad credit. As a matter of fact, a few personal loan lenders have, for the most part, their own model or standard of credit score and do not use the FICO (Fair Isaac Corporation) scores. Aside from this, your employment history, school or university, and a college degree are the other factors included.
Takeaway
For people searching for bad credit loans, many outlets can help you out. For example, you can borrow from a close friend, credit union loans, and online personal loans. However, it, without a doubt, will take some looking around to get the best repayment terms and interest terms you can afford.
All in all, use caution when getting a loan, this goes for any loan, especially if you have bad credit. Do not make things worse. Be careful and closely examine the loan before making a final decision.
Written By Tiffany Wagner
Tiffany Wagner is a full-fledged content writer who specializes in banking, finance, and real estate. Besides writing, she’s also a museum habitue’ and loves to be entertained about different cultures and origin. When Tiffany has free time, she immerses herself into financial analysis.
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