When you are trying to look into unsecured personal loans bad credit can be a real problem. You wouldn’t be the first one to turn around disappointed, thinking that you can’t score a good loan because of your credit. The truth, however, is that you can still borrow money to take care of your personal affairs, even if your credit score is not looking so good. If you’re wondering what your solutions are in a situation like this, just check out the different options we suggest below.
Credit unions and why joining one can be a good move
Getting a loan can be tricky when you have bad credit but if you are part of a credit union, you have much better chances to get one. This is mainly because credit unions are controlled by their members, which will be more likely to overlook “stains” on your record, like bad credit. There are multiple credit union opportunities you can look into. Maybe your employer can tell you about an existing credit union associated with your firm, or maybe you can join another union formed around your community.
Keep your close ones in mind
Getting money from an institution is a lot harder than getting it from someone you know personally. While the former option requires documents and means of proving that you will pay back, a personal relationship can make use of the trust. Whether it’s a close family member or a very good friend, you might be able to think of someone willing to lend you the money you need. Even if you wouldn’t think someone would help you, you should still try asking because you might be surprised of how much you mean to people.
Peer to peer
Another way of borrowing from people instead of institutions is to look into peer to peer borrowing. This is a form of loaning money or receiving loans where you interact directly with other people. These trades happen on specialized websites where you can go and announce that you are looking for a loan. A slew of important details such as how much you’re looking to get and what you need to money for will help compel one of the other site users to lend you the money. It’s a good alternative for someone with bad credit.
It’s true that having bad credit dramatically affects your chances of receiving a loan, but it doesn’t make it impossible. Paying off your existing debts also helps tremendously and increases your chances by a lot. When you have bad credit but no existing debt, potential lenders are a lot more likely to trust that you will be able to pay them back.