How to Get a Loan with Bad Credit
Sunday, July 21, 2013
If you have been turned down for a loan or do not want to get stuck paying high interest subprime, here are five alternatives to consider:
1: Use a Home Equity Line of Credit
The housing bubble has left many home and apartment owners, because more than their home is worth. But if you have equity in your home, you can have a low interest rate, loan tax deductible, as you want to get attention.
Of course, your home equity tap put your home at risk if you do not repay the debt. But if you have regular income and disciplined about paying its own line, it is a cheap way, regardless of your credit score.
2: Attach to credit institutions
Credit unions are similar to banks, but are by their members, who have something in common-like work is usually in the same industry or live in the same geographical area. Credit unions are nonprofit organizations that go to the profits to members in the form of lower prices and higher customer service.
Visit findacreditunion.com a credit union in your area and give them a call to discuss getting a personal loan. Compare loans from different settings, so you know that you the lowest interest rate possible, before signing the final paperwork.
3: Get a peer-to-peer lending
Peer-to-peer or P2P lending has been around since 2005. It is an online platform that allows you to borrow directly from an individual instead of an institution allows. Peer-to-peer lending is becoming more popular because it is a lean process, a win-win for borrowers and investors interested in high-income low wages. At this point, you can borrow as 6.5% and earn an average return of 10.5%, which is pretty impressive for so little.
Borrowers post loan company that the amount they want and why they want it comprises. Investors evaluate loan offers and choose those that meet their criteria. Peer-to-peer lenders screen all applicants and will check your credit, the part of your loan companies. So, while your credit score is still a factor, an individual investor more sensitive to your situation than a traditional bank.
Watch this peer-to-peer lending sites for loans or investments:
4: Take a loan from family or friends
As an online peer will not lend to you, maybe you have family or friends who want to. Give a loan from someone you know, as a serious matter, be clearly documented and legally the transaction.
To avoid further complications, make a written agreement that the interest rate that includes payment terms, do not put any collateral for the loan, and what happens if you do not repay the debt. You can get bills from sites like Rocket Lawyer and LegalZoom.
If you borrow money to buy a house, the loan is to be made tight to take advantage of the mortgage. To register and properly managing a home loan with a family member, a service like nationalfamilymortgage.com.
The bottom line is that a family should benefit all parties and loans should really be a last resort. You do not want to risk a close relationship mad at a bad debt or a misunderstanding about money.
5: Call to a co-signer
If you order can not loan you have a friend or family member who is willing, it is a sign made partly with good credit a loan with you would be. Someone who knows your situation and trust your ability to repay the debt would be willing to take a chance on you.
Remember that if you do not pay to search for the debt, creditors on your co-signer of full payment. In addition, the payment history will be both on your credit reports, which can be devastating for your co-signer if you do not keep your end of the bargain and make late payments or recorded by default.
If none of these five loan options works for you, do your best to raise your credit score so that you qualify for a traditional loan. A good start is to check your credit report for free at annualcreditreport.com and correct any mistakes that could hurt your credit scores. You can credit and do not overextend yourself time to improve on bad loans and credit cards by paying bills.