Are you having a hard time hooking up with a personal loan because of bad credit? Well, worry no more. Below are five ways to get around your bad credit score and get approved for a suitable loan for your needs and budget:
Borrow from family or friends
Whether you need quick cash to pay an overdue bill or for car repair, taking out a loan from a relative or a friend is one of the quickest way to raise funds not to mention one of the cheapest as well. The loan terms are generally more flexible and the rates are way lower than what major lenders can give you.
This route, however, can be tricky. If you’re not careful enough, relationships may end up strained especially since we’re dealing with money. To make sure your relationships with family and friends stay intact, make an agreement that will benefit both parties. Treat it as you would any loan. Repay the loan on agreed date and get the terms in writing if necessary.
Borrow from a credit union
Instead of panicking and resorting to high interest loans for people with bad credit, you are better off checking out your local credit union first. This method is not as quick as borrowing from family or friends but it’s a viable option nonetheless seeing that the interest rates are generally lower.
If you’re already a member of a credit union, you’re in luck. You can go ahead and apply for a short term loan at cheaper interest rates. Otherwise, you will need to open an account with a credit union of your choice then apply for a loan.
Borrow through Peer to Peer
Suitable for small and short term financing, peer-to-peer lending is another alternative to check out if you have bad credit getting in the way of your loan application approval. Peer to peer lending, as the name suggests, lets you take out a loan directly from the lender eliminating the middleman therefore lower interest rates and high returns for your creditor.
If you’re considering this route, you need to find websites specializing in this type of lending. Sign up for an account to determine your eligibility and rates. When done, you can request for a loan and wait from an offer from a creditor. Like with any loan, you’ll have to sign an agreement before you can receive the funds.
Borrow from your employer
If you’re fully employed, chances are high that you are eligible for a cash advance. This is another quick way to raise funds albeit small at a friendlier interest rate. You can speak with your employer and request for cash advance.