August 19, 2018
Getting a loan or not is going to depend on your credit score. If your credit score is bad then be ready to face the consequences. Lenders check your credit score to know if you are a high risk borrower. If your credit score is very bad then the lender may refuse you a loan right away.
Does that mean that you will never ever be eligible for a loan if your credit score is bad? Do not panic. There are ways in which you can improve your score and be eligible for a loan.
Do not opt for a payday loan
If you are one who has a poor credit history of the bank is sure to turn down your loan request. There are many siting there who will be ready to lend you money even with a bad credit score. They are mostly payday loans.
The payday loans give you money but they charge you a hefty rate of interest on the loan. the loan is a trap and not something that is advised in the first place.
Build your credit
Bad credit means that you will have to pay more interest for the loan. But your credit score is not something that is stamped on you. You definitely can work on it and build up your credit score.
You could use a personal installment loan that can be used in the case of an emergency expense. These lenders will evaluate your application of loan.
Go for a secured loan
There are many secured loans which can be availed by those with a bad credit. When a borrower secures the loan then the lender will be willing to offer a loan to him because of the security. This is because the local loans sharks are knowledgeable of the fact that he can possess the asset in case the borrower defaults on loan repayment. But as a lender, you need to be careful about what you plan to secure.