What is Bad Credit?
Your credit may not be as bad as you think. If you’ve been told that your credit ruined your chances of getting a loan, make sure it’s true. There may be errors on your credit report. Once those are fixed, things may look very different to lenders.
Visit Credit Unions
Credit unions may be more willing to offer you a loan with bad credit. They’re more willing to look at you personally - as opposed to just looking at a credit score and the loan application. If you sit across the desk from a human being, you’re more likely to get a loan with bad credit.
Try Peer to Peer Lending
Peer to peer lending services are a good option for getting a loan with bad credit. Instead of borrowing from banks (with rigid rules and higher overhead costs), you can borrow from individuals. They may be more sympathetic, but they’re not looking to lose their money.
Tap Friends & Family
Most peer to peer lending sites allow you to borrow from strangers. However, friends and family may be your only option for finding a loan with bad credit. They know you, and may be even more willing to take a chance. If you borrow from friends and family, do it properly so everybody’s protected.
If you’re having trouble getting a loan with bad credit, you may need to put up collateral. By pledging something of value, your lender knows you’re serious and has a better chance of collecting some money. If you have equity in your home, you can probably borrow against it - but there are significant risks.
Some lenders take advantage of folks looking for a loan with bad credit. They charge astronomical fees and make it nearly impossible to dig yourself out of debt. Beware of the following: