Monthly Archives: August 2016

How to Get a Loan with Bad Credit

If you have bad credit, many financial institutions will turn down the request for a loan because you are seen as a high-risk party. However, this should not kill your dream for getting the money you want. The following are top four options that you can use to get loans with bad credit.

(i) Use a credit union to get a loan

Credit unions operate in the same way to banks but are run on a not-for-profit basis. If you are a member, they will be willing to advance to you loans even if you have bad credit because their fabric binds you. By being a member, the risk is spread out to the entire institution so that every member can address the problem he/she is having. The unions are also lenient on repayment and interests are very low.

(ii) Go for secured loans

Even if banks do not want to advance credit to you, they will never turn you away if going for a secured application. With secured loans, the borrower provides collateral to help lower the risk of the lender. Among the top collaterals you can take to the bank include car log book, home ownership documents, or even business. It is important to discuss the loan with the lender to get value for it. With secured loans, the interest is usually low and repayment spread over a long period.

(iii) Use peer-to-peer lending

Peer-to-peer lending is a method of borrowing from friends that was established in 2005 and is gaining a lot of popularity. Though credit score will still factor in this case, the lenders are more lenient and will provide you with credit as far as you can demonstrate the capability for repayment.

(iv) Borrow from relatives

If you are still getting it difficult to secure a loan, consider asking a close friend such as uncle, husband, wife, uncle or other relatives. Present them with a clear payment plan such as end month salary.

Work hard to improve your credit score

The problem you experienced trying to get a loan is likely to be replicated in other related financial areas. Therefore, it is advisable to start working on improving the credit score immediately. Check and correct mistakes on your credit report, make payment to your previous loans on time, and keep growing other lines of revenue. You should also stay healthy at all times by acquiring entry-level bikes and riding every day or attending your favorite gym.

How to Get a Loan with Bad Credit

If you have bad credit, many financial institutions will turn down the request for a loan because you are seen as a high-risk party. However, this should not kill your dream for getting the money you want. The following are top four options that you can use to get loans with bad credit.

(i) Use a credit union to get a loan

Credit unions operate in the same way to banks but are run on a not-for-profit basis. If you are a member, they will be willing to advance to you loans even if you have bad credit because their fabric binds you. By being a member, the risk is spread out to the entire institution so that every member can address the problem he/she is having. The unions are also lenient on repayment and interests are very low.

(ii) Go for secured loans

Even if banks do not want to advance credit to you, they will never turn you away if going for a secured application. With secured loans, the borrower provides collateral to help lower the risk of the lender. Among the top collaterals you can take to the bank include car log book, home ownership documents, or even business. It is important to discuss the loan with the lender to get value for it. With secured loans, the interest is usually low and repayment spread over a long period.

(iii) Use peer-to-peer lending

Peer-to-peer lending is a method of borrowing from friends that was established in 2005 and is gaining a lot of popularity. Though credit score will still factor in this case, the lenders are more lenient and will provide you with credit as far as you can demonstrate the capability for repayment.

(iv) Borrow from relatives

If you are still getting it difficult to secure a loan, consider asking a close friend such as uncle, husband, wife, uncle or other relatives. Present them with a clear payment plan such as end month salary.

Work hard to improve your credit score

The problem you experienced trying to get a loan is likely to be replicated in other related financial areas. Therefore, it is advisable to start working on improving the credit score immediately. Check and correct mistakes on your credit report, make payment to your previous loans on time, and keep growing other lines of revenue. You should also stay healthy at all times by acquiring entry-level bikes and riding every day or attending your favorite gym.

4 Proven Ways to Help You Get a Loan

Are you in a financial difficulty and need some assistance? Well, the best way is getting a loan from your lender of choice. However, getting a loan has become trickier because lenders are very cautious. Because of this, many people end up getting their loan requests turned down. To be sure of getting the loan you want, here are 4 proven ways.

(i) Take your time to prepare

When you approach a lender, the main focus is establishing your creditworthiness. Therefore, you need to take ample time preparing.

• Review your credit report: The target here is raising the credit score so that the lender will not see you as a risky party. Check your credit report with about 3 credit bureaus to correct any errors. Ensure that all info including featured names, credit limits, and closing dates among others are okay.

• Put up a good source of permanent revenue: Every lender will scrutinize your source of income to assess your capability to repay the loan. If employed, this is not a major problem. However, if you have a business, the books of accounts should be well audited and presented to the lender.

• Outline how you want to use the money. If you want to open a martial art center, provide details of the things you want to buy from http://www.tigerstrike.com/equipment/sparring-gear/foam/. If you want a new car, you might want to give the detail of the new model and details of the seller.

(ii) Evaluate available credit options

Today, there are diverse loan options that you can go for. The main ones are secured and unsecured. If you opt for secured loans, the lender will require you to provide some collateral. The main collateral options accepted by lenders include homes, boat, and cars.

If you go for unsecured loans, the lender shoulders all the risks. Therefore, the borrower is not required to place any form of collateral. However, interest rates on unsecured loans are very high and are only provided to those with very high credit score. The commonest examples of unsecured loans are personal loans and small business loans. Note that with the small business loan, a proof of business profitability has to be provided.

(iii) Check for an appropriate institution to borrow from

While many lenders have opened their doors for clients to seek credit, you need to find the ideal one for your situation. Take a closer review of the lenders, read their history, and customers’ reviews to use the best. Main sources of loans include banking institutions that provide auto loans, personal loans, credit card loans, and small business loans.

Payday enterprises also come in handy to provide people with fast loans. They are easy to apply and approve loans within a timeframe of 24 hours. However, they only give very small loans and charge very high interests because they are unsecured. Before you go for the payday loan, take time to check the interest rate.

If you do not feel comfortable applying for a loan in a formal financial institution, you can also seek assistance from close friends and family members. Approach members of your extended family and seek assistance with a good payback plan. Many will be willing to help if you can commit to repay the money.

(iv) Do not apply for loan from two institutions at a go

Some people might suggest that you apply to several institutions to raise chances of getting approved by at least one of them. This is a very bad idea. When you apply for a loan with a financial institution, your credit score drops as the institution checks for your credit report. This could compromise your chances of getting a loan because of low credit score. Therefore, only apply for a loan from one institution at a time and if denied, review the cause for disapproval before moving to another.