Things happen that can leave people with a not-so-great credit score that can inhibit obtaining a loan when you are in dire need. Whether it is a costly home repair, auto repair, or simply paying a bill so that your account won’t default, loans are a vital tool in helping you get things done. Even people with poor credit have some options that can help them get through rough times while rebuilding their credit score. If you are struggling with lousy credit and a need for a loan, read on to see how you can alleviate your situation.
Go With An Installment Loan
Installment loans vary widely and are used often for many different areas of needs. For the person struggling with rough credit, you can find installment loans designed for you. They are often for a smaller amount, usually $2000 or less, and is paid for a set amount of time. Finding a reputable installment loan option, such as Blue Trust Loans, is as easy as a quick google search. Most of these type of loans are approved within minutes and are in your bank account by the next business day. The interest rate is higher than a traditional loan but when you are in need to fix your car right now, it can be a lifesaver!
It can be difficult to get financed when you have defaults on your credit history. Most lenders take into consideration how old the defaults are and how much they are before they make a decision. If you are faced with recent defaults that are fairly large, you will more than likely be denied. Payday loans become your option at that point. A payday loan is similar to an advance in pay. You receive an amount based on what you would get on your next paycheck with the understanding that you would pay your balance when you get paid. Interest rates will vary based on state and if you choose to go with an online lender. Interest rates can be as high as 400% and there are often finance fees to pay as well. It is wise to take that into consideration when considering how you will pay your loan back.
Check Your Local Credit Union
Credit unions can be a huge help when trying to get a loan. Many credit unions will do personal loans in order to help you raise your credit score and get you the money you need. Unlike big bankers, credit unions can offer some decent interest rates and fair payment terms over the course of a year. Some credit unions require that you be a member of their bank. Check to see if you can become a member and what that entails. Each credit union is different and have varying requirements. State Employees credit unions are often open to state employees, their employees, and family members. Others may require that you simply work in the same city.
No matter which option you try for, the best thing to do is to review your financial situation and do your best to repair your credit. Reviewing and adjusting your budget is a great start and we highly recommend looking for a local non-profit that can help you get back on your feet. These places often offer classes to help you understand finances a bit better and coaching to keep you motivated and on track. Don’t stress about the stigma associated with imperfect credit, many people are in the same boat and working hard to changing their situation. You can fix it and do much better in the future!