For many people, applying for a loan may be the first time that they realize they actually have a low credit score or there have been problems with their credit history. If this sounds like you, then don’t panic – there are plenty of lending options out there for everybody, including loans that are designed to help those with a low credit score or less-than-perfect credit history. We’ve gone over some of the basics of having bad credit, what you can do to protect it whilst borrowing further, and how to manage to borrow with a low score.
#1. Find Bad Credit Lenders:
Having a bad credit score certainly isn’t a unique situation to be in. With borrowing at an all-time high, and anything from late payments to defaults able to affect your credit score negatively, it’s not uncommon for everybody’s credit score to get lower than they’d like it to be at some point. And, a poor credit score doesn’t always mean that you’re unable to make repayments. Unless you’ve got a history of defaulting or already have a high amount of credit in your name, most badcredit lenders will be willing to give you a chance. You can find bad credit loans payday options from Loan Pig USA if you’re in need of quick, short-term cash – just be sensible when working out how much to borrow and understand the repayment options. When you repay on time, your credit score will improve.
#2. Pay Off Existing Debt:
It may be necessary for you to repay all or some of the existing debt that you have in order to find yourself eligible to borrow further. This is because not only do lenders look at your credit history and patterns of borrowing behavior, but also how much credit you currently owe. If you’ve already got a number of lines of credit such as loans, credit cards, hire purchases and more, then lenders may not want to take the risk of lending to you when you already have so much to repay – even if you’ve never missed a payment in your life.
#3. Check Your Credit Report:
Have you been rejected when applying for a loan, but aren’t sure why? If you don’t have loads of credit in your name, have always managed any money that you’ve borrowed responsibly and can’t remember ever making late payments or missing a payment then it could be down to a discrepancy on your credit file. The best thing to do is get a copy of your credit reports and look for anything that doesn’t seem right; you can then dispute these and have them removed from your report.
#4. Consider a Guarantor:
If you are in need of a loan quickly, then finding somebody to act as a guarantor or co-signer for you may be an option to consider. This option allows you to put somebody else forward who agrees to make repayments on your behalf if you are unable to, lowering the risk for the lender. Your guarantor will usually need to be a homeowner adult in full-time employment.
Don’t let a bad credit history get in your way of getting the funds that you need!