Loan Options With Bad Credit History | Where to Turn
Having poor credit history might be a massive obstacle for you to avail any form of credit assistance from banks and other lending companies. Missed or delayed repayments and repayment defaults in the past will altogether contribute towards the evaluation of your credit rating, and consequently determine your credibility of making a timely repayment for the availed credit. Another situation wherein a lender might refuse to offer you a loan is when you have no credit history whatsoever. This implies that you might encounter troubles in availing a loan if you have not taken any form of credit in the past. Here are a few ways in which you can avail loans even with the history of poor credit repayment.
Apply for a Short Term Loan
A short term loan is an enormously useful line of credit that does not necessarily obligate an individual to have a good credit score. In other words, you can be granted substantial financial assistance of up to $2500 in the form of short term loans, even if you have poor credit history or no history whatsoever. A short term loan, like an installment loan, involves extremely lenient credit checks and requires you to repay the principal and interest amount due by over the next coming months, generally 3-12 months.
Get a Co-signer
You can obtain several kinds of loans by appointing another individual with a good credit history to become your co-signer in the loan agreement. Based on the credit score of the qualified co signer, the lending company will stipulate the terms and conditions of the loan and render both you and your co-signer equally responsible for the debt repayment. In the event of a repayment default, your co signer’s credit score will also be severely affected.
Apply for a Personal Loan
There are several lending companies and banking institutions that have the facility of granting quick financial assistance in the form of personal installment loans to individuals in need. The best part about these loans is that they involve negligible credit checks of the applicant, making them a great option for individuals who have a bad or no credit history. The application process is fairly simple, and so is the approval and disbursement process. Learn the difference between payday and installment loans, here.
Go for Peer to Peer Lending
There are several P2P lending websites on the World Wide Web that offer loans to people who have a bad credit history, from specific individual lenders instead of a credit institution. You can post a loan listing indicating the required loan amount on the P2P website and avail loans from creditors who accept your application and agree to offer you financial help.
Once you are able to avail a loan with monthly payments, you must ensure to adhere to the repayment schedule in order to build your credit score for accessing easy credit in the future.