Do you need to get personal loans?
You might be in a financial emergency, and you need to get cash, and your option is to apply for a loan.
But what if you have bad credit?
This lessens your opportunity to be granted personal loans on banks.
But If You Need Money, There Are Other Options to Get Personal Loans. Here Are the Things You Can Do:
1. Use Home Equity
You can get a low-interest loan using the home equity line of credit, and spend the cash in any way you want, but be sure to repay it. Getting a home equity line of loan is an inexpensive option, and it doesn’t require you a good credit score to avail such. However, getting a home equity line of credit puts your property at a cost. And if you don’t repay it, you may lose your property. Be sure that you have a stable and reliable income and that you are committed to paying what you have loaned.
2. Credit Unions
Credit unions are non-profit organizations. They are like banks, but they are owned by members of the group or union. Credit unions are more flexible in their rules for lending and can give you a decent amount of personal loans.
3. Peer to Peer Loan
Peer to peer, or simply known as P2P lending is an online lending platform that lets you borrow money from an individual instead of having to go to any bank, union, or institution. The P2P lending has been growing since it started at around 2005 because of the benefits it can give both to the borrower and the lender. The borrower can borrow money from the lenders or investors at a low-interest rate from 6%, while the lender or investor can get relatively high-interest rates.
In a peer to peer loan, a borrower can post a loan request, with the amount of money needed and what the loan is for. Your credit score is still required so that investors can see if you can be trusted and can pay, but if an investor understands your need for a loan, he may still consider lending you money even with bad credit.
4. Family and Friends
They are your go-to people when you need a fast cash personal loans. If the P2P lending still doesn’t work, then go to your friends or family members that can help you out with getting some cash. And even if they are your family or friends, treat it still as a business transaction to avoid any complication and inconvenience in the future. Have a memorandum of agreement with payment terms, collateral if there is a need to, and what to do if you fail to pay what you have loaned. Have it signed by the both parties and to make sure, at least one witness of your transaction.
This is to give assurance to your family and friends and to maintain a good relationship to both parties.
5. Request to a Co-signer
Ask somebody you know with good credit to co-sign personal loans with you. The good credit reputation of your co-signer will help you get a loan. If a person agrees to be your co-signer, he/she trust you and trust that you can repay the loan, so be sure to pay it on time.
Getting a loan may be difficult if you have bad credit, but paying loans can be more tedious. Even if there are other personal loans options despite having bad credit, the first thing to do is to avoid bad credits. To do this, loan only if you are sure that you can afford to pay for it.