5 Options for Loans for Bad Credit Rating

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Did you know that over 68 million Americans have poor or bad credit scores?

This is about thirty percent of people with credit scores. Such a high number shows how tough it can be to maintain good credit.

What’s more, one small thing can set you back when it comes to your credit score. You may miss a loan payment one month due to a job transition.

Or perhaps sudden illness or loss has stacked up your debt.

Whatever the case, having bad credit doesn’t have to stop you from getting the financial assistance you need.

Read on to learn about the options you have for loans for bad credit rating!

1. Credit Union Loans

There are many advantages to shopping a credit union when it comes to loans for bad credit rating.

Credit unions are different from banks because they’re essentially not-for-profit businesses. As a result, they may offer better interest rates for loans of all kinds.

It’s also easy to join a credit union, and membership is often free.

When it comes to taking out a credit union loan, you’ll encounter fewer fees or penalties than those offered by banks.

These are ideal loans for bad credit rating. Credit union loans are less strict with their loan qualifications and standards.

In fact, they offer what are called unsecured loans specifically for people with poor or bad credit.

The only thing to keep in mind is the fact that unsecured loans will have shorter term lengths. This means you’ll have to pay off these loans faster.

Your credit score may also limit how much you can borrow, and you may still face high-interest rates.

2. Bad Credit Personal Loans

These are the most common type of loans for bad credit rating. They may also be called hard money loans.

There are literally thousands of lenders out there just waiting to help people with bad credit get the loans they require. At the top of this list is Hard Money Georgia.

If you weren’t able to qualify for a credit union loan, check out bad credit or hard money personal loans. These are designed specifically for people with low credit scores.

The good news about these loans is that the application process is easy and fast. If you have bad credit, chances are you’ll qualify for a loan immediately.

You can receive your loan funds within a short amount of time, too.

It’s important to know that you may be limited in how much you can borrow. You may also have less flexibility in time you have to pay off the loan and interest rates.

Nonetheless, these are a great option for people needing immediate and easy funding.

3. Peer To Peer Loans

A lot of people overlook this option when searching for loans for bad credit rating. But they are a new and feasible way to get the cash you need quickly.

When you take out a peer to peer loan, you are borrowing from an individual lender rather than a bank. You can apply for these loans through a variety of online sources.

They are unsecured loans, but the great news about P2P loans is the fact that they offer lower interest rates in general. You’ll pay fewer fees.

What’s more, if you have bad credit, you can make a case for why this is so when you’re borrowing a certain amount. As a result, you may be able to borrow more than you would from a normal bank.

You may still encounter high-interest rates with these loans. You may not be able to get your cash immediately, either.

4. Home Equity Loan

Loans for bad credit rating don’t have to be personal. If you own a home at the moment, you may qualify for a home equity loan.

These loans are only possible for people who have some equity in their home already–at least 20%. They essentially involve establishing your home as collateral.

You do have to fulfill some requirements to qualify for a home equity loan. You may have to show your employment history and how much debt you have in relation to your income.

These may seem like risky loans, and in many cases this is true. The bank can cancel your credit line at any time.

You also do have to fulfill stricter requirements.

5. Cosigned Loans

There are many options if you’re looking for loans for bad credit rating. But you don’t have to do it alone.

Cosigned loans enable you to sign the papers for a loan with someone else–generally someone with good or excellent credit.

When you get a cosigner for a loan, you essentially piggyback on their great credit. As a result, you may enjoy lower interest rates and flexibility in loan terms.

Do keep in mind that if you can’t pay off the loan, the cosigner is responsible for the balance. In this regard, it can be tough to find a cosigner.

Before You Take Out a Bad Credit Loan

Some of these loans for bad credit rating may seem like a great choice for you. Nonetheless, it’s important to take care of a few things before you apply for one of them.

Make sure you check your credit report for errors. If you find any mistakes, file a dispute with a credit bureau right away.

Do your research wisely. Compare offers and rates from a variety of lenders, and don’t just settle for the best rate. Look at fees, penalties, and/or length of loan term.

Be cautious of scams. Always read the fine print and speak to a real human when applying for a bad credit loan.

If you have time, boost your credit as much as you can before applying for a loan.

Loans for Bad Credit Rating: Final Thoughts

At the end of the day, you do have options when it comes to loans for bad credit rating.

If you’re worried about getting approved for a loan, start by exploring personal bad credit loans. These are designed especially for people with bad credit and can get you the funding you need in a short amount of time.

These include hard money loans, our specialty here at Hard Money Georgia. We are here to help you identify the loan you need, from line of credit to refinance loans.

Check out our client testimonials here before you get started on your application!