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By Brenda

Tips to Get Quick Loans with Your Bad Credit

Dec 31 2013 Parent Category I

Trying to get a loan when you have bad credit isn’t always the easiest of tasks. Sometimes it takes a little creative thinking, while other times it needs a bit of gumption and determination. If you are in a situation where you are looking for a loan despite having a bad credit history, here are a few tips that may make the process a bit less daunting.

Apply at Your Bank or Credit Union

Going to where they know you is usually a good option. This is because your bank is able to look at both your credit report, as well as your history with them. They can see how much income you put into the bank, how much money you save, and how often you have over drafted your account. If this is all in good standing with your financial institution, they may look beyond a bad credit history for specific types of loans.

Ask For Help

Asking family or friends for a loan is not easy, and many friends and family members would rather avoid this situation at all costs. However, sometimes one of them is both willing and able to help co-sign for a loan that can get you back into solid financial standing. The worst thing they can say is “no”, so it doesn’t hurt to ask.

Cause-Specific Loans

This can be a very important tip when it comes to getting the loan you need. Different loans have different qualifiers, so if you look for a loan to specifically cover what you need, you might find success easier than a blanket-style loan. For example, if you need a car loan, you will likely find better success looking through auto lenders than you would personal loan lenders.

Apply at a Broker

Brokers are able to get your information into more hands than a single loan officer would be able to do, so you can have more people assessing what they could offer you at the same time. This means you could have multiple offers come back to you at the same time, allowing you to pick the one that will work best for your needs with the best terms available.

Offering Collateral

Giving the potential lender something of value to hold on to allows them to feel more secure in handing out money to someone they consider being high-risk. If this is how your credit report makes you look, consider what you own that’s valuable. Showing proof of collateral when applying for a loan can sometimes be the boost that lenders need to give you the loan you are looking for under the most acceptable terms possible.

Increase Your Income

One of the best ways to be able to lower the risk of lending in the eyes of a lender is to increase your income. It isn’t always easy to go through and repair your credit history to make you appear more appealing to lenders, but adding in more income can lower the overall risk you pose in their eyes. The more income you are able to secure, the lower the risk they see when lending money to you.

Explore Alternatives

This is a bit of a hit or miss tip for some people seeking out a loan with bad credit. For example, if you happen to be a homeowner, you can explore getting loans through your home equity, as this tends to be an easier and less risky loan to most lenders because they have the collateral of the house should you default. However, if you’re not a homeowner, this tip does not apply to you. Alternative loans can be sought after from multiple directions, such as getting a loan against something else of value for those that do not own a home, such as property, classic cars, or even insurance policies. Each of these alternatives is open to anyone that has something to borrow against, so consider these options when a loan becomes necessary.

Anyone with bad credit still has options; they may just require a little creativity. Don’t count yourself out simply because you have bad credit. Run your credit report and see exactly where you stand, then decide what route is going to best fit your needs at that point. Simply because you believe you have bad credit does not make it accurate, so know before assuming.

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