A lot of people often run into trouble when it comes to their credit score. Most of them have bad credit scores, while some don’t even know their own scores. If you have a bad credit score, the chances of you securing a good deal on your loans can be very little. You also have to deal with limited options if you’re stuck with almost 53% of the US population who have been denied loans because of bad credit scores.
Now that the world is at a standstill, people need financial assistance more than ever. Although there are government programs that help ease the financial burden brought about by COVID-19, it still isn’t enough to make ends meet. Thankfully, there are loan options that people can opt for during this pandemic.
For those who have bad credit scores, don’t worry. There are reliable lenders online that you can count on. For example, you can find online personal loans for bad credit from Match Financial and other lenders. To know more of the other loan options that would work for you, read on.
Online Loans
When you’re one of the many people who have bad credit scores, look no further than the internet. Although some might argue that the internet is littered with scams, there are still many legitimate sources where you can borrow money. For one, you can find online personal loans for bad credit from Match Financial.
Even if you have bad credit scores, online lenders will often need to retrieve personal information. Do, however, be vigilant when giving out sensitive information. Always check if the site you are visiting is safe and secure. If you sense something wrong, avoid going through the signup process.
However, if you do, get to a site with legit offerings, complete everything the site asks you. Once you get to fill up their forms and pass their evaluations, you’ll be presented with a contract. Always read and understand the contract before signing it. If you’re done reading and signing the contract, the amount you borrowed will be processed and transferred to your bank account within the next few working days.
Payday Loans
If you’re one of the few lucky ones to still have a job during the pandemic, then payday loans can work well with your situation. Payday loans are loans that usually come with high-interest rates. This fact should enable you to consider whether to push through with payday loans.
Although payday loans often come with high-interest rates, it should be noted that payday loans are easy to approve, and you can receive them in almost no time. Even if you have bad credit, as long as you’re a regular or permanent employee of a company or firm, you can avail of payday loans.
Payday loans are considered as “cash advances,” meaning you can opt to pay the entirety of your debt on your next payday. Alternatively, you can also check your company’s policy on such loans.
Unsecured Personal Loan
Another easy way to get a loan with bad credit is through unsecured personal loans. Although the soaring interest rates come with your bad credit score, unsecured personal loans can be worth it. Unsecured personal loans are loans that do need collateral to be approved.
Shop around lenders if you want to get the fairest and realistic loan option for you. Unsecured loans are quickly approved, provided that you convince your lender that you’re able to pay the amount you’re requesting. One way of doing that is by presenting receipts and your payslips.
Secured Personal Loans
Even though you have bad credit ratings, it doesn’t mean that you don’t own any property. Lending companies often prefer secured personal loans, even those who have poor credit scores because of collateral. Collateral can be anything of value such as a house, a car, jewelry, etc. the lender can legally take that if a borrower cannot pay back the loan.
Guarantor Loans
People with poor credit scores often rely on the help of others to get a loan. The guarantor loan is just that. Lending companies will approve a loan since the borrower has a guarantor or a consigner to the loan.
The cosigner, along with the borrower, is legally obligated to pay back the loan. A cosigner can be your spouse, a close relative, a friend, or even a co-worker. Most lending companies will only approve guarantor loans from people with less-desirable credit scores if their guarantor has a good to an excellent score.
Emergency Loan
Another type of unsecured loan is an emergency loan. As the name suggests, people can opt for an emergency loan to pay off for unforeseen expenses. Examples of these expenses are, but not limited to:
- Assistance with Natural Disasters
- Unforeseen Hospital Visit or Emergency
- A necessary appliance or tool replacement
- Major car repairs
Takeaway
In difficult times such as these, many people are having a difficult time with their finances. Those with poor credit scores are often left scratching their heads, thinking of other possible options they can avail. The options mentioned above should always be considered by those having trouble with their financial scores.
