There are all kinds of reasons why you might want to take out a loan.
Maybe you want to go back to school now that your kids are a little bit older. Perhaps you want to build an addition onto your house to make room for a new arrival. Maybe you need a new car to get your kids to and from soccer practice.
However, if you have bad credit, getting that loan can sometimes be pretty tough.
But despite what you might think, there are options out there. In this post, we’ll tell you everything you need to know about how to find the best loans for bad credit.
The financial future you want is possible. You just have to know where to look to find it.
Try Online Installment Loans
The first option on our list of loans for bad credit?
Online installment loans.
First of all, online installment loans often let you borrow more money than other options allow. You’re paid this money in installments (in most cases, once a month.) This helps you to increase your credit score while also preventing you from spending the money carelessly.
So, if you struggle to control your desire to splurge, installment loans are a wonderful option.
This means that you’ll also have a longer period over which to repay the loan — but that’s an advantage if your current cash flow is less than you’d like it to be.
Most online installment loans bad credit also offer a more flexible repayment schedule. As long as you have an American bank account and have proven a reasonable ability to repay the loans, you’ll be approved.
Best of all?
In the majority of installment loan applications, no credit check is required. Additionally, you won’t be asked to divulge detailed information about your finances. The application is incredible simple, and only takes about ten minutes to fill out.
In most cases, you’ll see your first installment payment within 24 hours of your approval.
A Loan from a Credit Union
If your credit is less than stellar, you know firsthand how difficult it can be to get approved for a loan by a bank.
Luckily, there are other options.
Another one of the most popular loans for bad credit? Credit union loans.
While you’ll still need to provide a certain amount of financial information, and demonstrate a reasonable repayment ability, credit union loans are a great possibility for those with bad credit.
To get the loan, you’ll need to become a member of a credit union. This too, isn’t nearly as complicated as it might sound. All you really need to do is demonstrate that you live near the credit union, or that you work in a certain field approved by the union.
This means that pretty much anyone will be accepted for membership, as long as you find a credit union where you meet the membership criteria.
So, how are these credit unions able to grant you loans even if you have truly awful credit?
It’s because they operate as non-profit entities, so they can undercut the costs and interest rates of banks.
Plus, because they’re used to working with individuals on a more personal basis, you’ll likely receive much better customer service than you would at a large bank branch. You’ll also have to pay less fees and penalties, which can make the process much more of a financial possibility.
Keep in mind though, that loans from a credit union will often have shorter repayment periods than installment loans. Additionally, the amount of money you’re able to borrow will likely be less than you can get from an installment loan.
Apply for a Home Equity Line of Credit
If you’re a homeowner, you’ll have a nice leg up when it comes to getting loans for bad credit.
This is because you’ll be able to use what’s called a home equity line of credit (also known as a “HELOC.”)
Of course, this means that your home will serve as collateral. So, that means it’s incredibly important to really think about this choice, and to be honest with yourself about your ability to make repayments.
If you have a minimum of a 20% stake of equity in your home, you’re eligible for a HELOC. You’ll also need to prove to your lender that you have a strong record of employment.
If approved, you’ll be able to take out a line of credit on your home that’s tax-deductible. The interest rate will be much more manageable than other options, and you’ll be able to use the money for anything you like.
Look for “Bad Credit Loans”
In your search for loans for bad credit, you might come across something simply titled “bad credit loans.”
However, this option is last on our list for a reason. Only go for this choice if you’ve been denied the other loan types we’ve listed.
Because this is the type of loan where it’s easy to get trapped in a debt cycle. This is because these loans come with seriously high interest rates that make it challenging to get out of debt.
However, the majority of people who apply for these loans are accepted, even if you have bad credit.
Want More Advice About Loans for Bad Credit?
As you can see from this post, you have far more options than you might think when it comes to securing loans for bad credit.
However, it’s always important to make sure that you’re borrowing money because of a real need, not because of a want. Speak with your partner and talk about how you plan to stick to your repayment schedule.
One of the best ways to make sure you’re always on top of your bills? By looking for other ways to save money.
That’s where we come in.
Now is the time to secure your financial future, for both you and your children. We’re happy to have helped you take the first step.