Bad Credit Putting You Down – Help is At Hand With Bad Credit Loans
There are five simple steps you can follow to get a loan even with a bad credit report. First, is to resort to a home equity for getting loan. Second, approach credit unions. Third, go in for a peer to peer loan. Fourth, is getting credit from your family and friends. Fifth, is to get a co-signee with you for your loan.
A bad credit is a put off for many people. It is frustrating to be turned away from one bank to another due to this. But help is at hand. Simple tips can actually get over this problem of bad credit loans. First tip is to utilize a home equity way of obtaining credit. But you should be sure of your ability to repay if you are exercising this option as you are putting your property in the line of fire. Credit unions are another saving grace to get over this sticky situation. They are similar to banks but their trustees are kind of interest groups. For example, they could be serving the interests of a particular community, industry or profession. They have lower processing fees. This is a very good option to consider, so get down and find the nearest credit agency near you. Compare the various credit unions carefully to get a low down on what are their rates and then proceed.
Peer to Peer loans – an excellent way to get loans with bad credit
Look at the option of getting a peer to peer loan. This concept has been around since 2005. This is an online way of getting a loan directly from a person rather than a financial institution. This is gaining in popularity day by day and is beneficial for both the lender and the borrower. The borrower gets a lower interest rate while the interest rate is higher for the lender. Interest rates are impressive to say the least. Borrowers post online the amount they require and the reason. Lenders do check your credit score but they are more sympathetic to your financial obligations and your chance of getting a loan in adverse conditions is vastly improved. There are some very good peer to peer loan websites which you can peruse online. All in all, this is a good option.
The next option is getting a credit from your family or friends. But treat the loan as seriously as you would from business institutions. Better still, have a written agreement that clearly jots down the conditions. Typically, this sort of an agreement should have details like any collateral you might offer in lieu of the loan, conditionality’s in the eventuality of your not being able to pay back etc. Draft promissory notes can be obtained online. If you are obtaining this type of a credit for the purpose of buying a home, make sure the loan is rightly safeguarded to take advantage of mortgage interest deduction. There are sites to help you out with this. But the caveat is; this option should be exercised only as a last resort.
The fifth option is to send in an appeal to a co-signer. This is nothing but getting someone with a good credit to sign on the jotted line for a loan with you. But this is easier said than done as you have to find someone trustworthy enough to share the burden with you in case of a default. So, now you are ready to get bad credit loans the trusted way.