If you’re struggling to find loans for bad credit, then you’re certainly in an unenviable position – but it’s important not to give up hope. With the right advice, you can still find a decent loan, no matter how dire your current financial situation is. With this in mind, we have several useful pieces of advice to share with you that’ll help you secure that loan you desperately need – so let’s begin.
1 – Improve your credit score
One of the quickest ways to get a better deal on loans for bad credit is to simply do whatever you can to improve your credit score. The first step to doing this is to uncover what your current credit score truly is, and this couldn’t be any easier thanks to the many free credit reporting services available online.
Once you know what your score is, you can follow a variety of techniques for improving your score – even if it’s only by a tiny amount. Often, just a small improvement may be enough to push you over the edge and get you the loan. Always aim to pay bills on time, and work to improve your ‘debt to credit’ ratio, and you’ll soon see your score improving over time.
What’s more, you can always write a nice letter to your lender and ask them to remove any negative items that may be on your report. Many people have a lot of success with this technique, and the boost to your credit score this provides can make all the difference when it comes to getting that loan.
2 – Ask friends and family
If you’re truly stuck when it comes to getting a loan from the bank, a good solution is to loan the money from friends or family instead. This can help you make ends meet in the short term, and a good friend or family member is likely to give you a better rate of interest than most banks, too.
3 – Use a co-signer
Another way to obtain help from your friends or family is to ask someone to co-sign your loan. This works very well, especially if you know someone with a fantastic credit rating. However, you’ll have a lot of responsibility on your shoulders – because they will be risking that rating for you. With this in mind, it’s crucial to have a solid repayment plan in place, to avoid defaulting on the loan, or making any late payments.
Ultimately, if you follow these tips, you should find getting loans for people with bad credit becomes much easier.