In fact, VantageScore says there are about 220 million scoreable people and 68 million of them have bad or poor scores (lower than 601). With a number that high, it’s impossible to believe that no arrangements would have been made by the authorities for those going through the credit card crises.
So, the good news is that you are aware of your credit score and are in the corrective mode. The next step would be to analyze the loan options you have. Steer clear of the payday loans since they tend to leave you more in debt than you currently are. In fact, payday loans are illegal in 13 states because of their predatory nature.
The lack of options might look disheartening but don’t fall prey to ludicrous schemes. The key is to research to find the one that suits you best.
A credit union is a member-owned financial co-operative, similar to commercial banks in terms of their services. Credit unions are nonprofit institutions that pass their earnings along to their members in the form of lower fees, borrowing costs & better customer service.
Here’s Is How It Works
There are Credit Unions that have programs for those with bad credits.
They dig into your credit report to see what has caused it. In case you have been paying other obligations but have liabilities outside the norm, the credit union will make a judgment whether to loan you money or not.
The credit union will also consider those who had a bankruptcy in their report, as long as it a while ago.
Charlotte Metro Credit Union in North Carolina offers personal loans that range from $500 to $25,000 with a 60-month term. Interest rates are between 9.75 percent and 16.95 percent.
Have a friend/family member who has a good credit, is generous & can vouch for you? Get the guy to help you get a personal loan.
First, choose a lender that accepts co-signers for a personal loan and then get hold of someone who is willing to co-sign for you. With a qualified co-signer, the lender will set the loan terms based on the credit score of the person with good credit, who will then be equally responsible for repayment.
You need to take responsibility if you manage to find a co-signer. That’s the least you can do for someone who is putting so much at risk.
In case you don’t find anyone to co-sign for you the other options might be to build your credit scores but paying off small loans and cutting down on your credit purchases completely.
You can also pledge a collateral by mortgaging something of value (an asset) against the value of the loan. Be mindful of the fact that you might lose the asset if you fail to pay off the borrowed amount.
If you have reasons why you should get approved for a loan you should negotiate with your lender. Make sure you point to prove yourself as a responsible borrower.
If you have a way to justify your past delinquency, then you must prepare a good case and ask your lender for a reconsideration.
Getting a personal loan with bad/low credit might be difficult but not so much if you have researched your options well.