There’s nothing worse than having a horrible credit score. It’s the past impacting the present and the future. Rebuilding a horrible credit score is tough because it can take months and years to achieve. Someone who needs money now doesn’t have that sort of time. The answer is to think about some alternative ways to get money with horrible credit.
Luckily, you still have options open to you.
Look for Lenders with No Credit Checks
The first option is to go to a lender that doesn’t take into account credit checks. They do exist. The only problem is you have to sacrifice favorable rates. Most lenders offering these no credit check loans with high-interest rates and lower the amount you can borrow.
Finding lenders with no credit checks is relatively easy, though. Once you find a lender that’s right for you, all you need is proof of identity and proof of income.
Get a Bad Credit Bank Card
A credit card is an ideal tool to get money when you’re in a situation where you’re out of cash. Those with bad credit sometimes believe they don’t have access to credit cards. There are providers who will provide you with what’s known as a credit card for people with bad credit.
The limits tend to be no more than $500 at one time, but they will allow you to borrow small amounts of money at a time. They can also be used to start rebuilding your credit score again.
Opt for a Secured Loan
The majority of loans people with bad credit can’t qualify for are unsecured loans. A credit card loan is a type of unsecured loan. That means the lender can’t do anything against you personally, other than go through the collections process, to retrieve their money.
Secured loans are different because they’re attached to an asset. For example, your mortgage is a secured loan. These often don’t require credit checks because the lender has a guarantee that they can claim their money back if you fail to make the repayments.
Get a Cosigner
Finally, you can always try getting someone to cosign the loan. This is essentially someone else accepting the responsibility should you fail to repay. Be aware that if anyone becomes the cosigner on a loan they’re taking full fiscal responsibility. If you don’t pay, the lender will come after the cosigner for the money.
You should only opt for this if you’re sure that you can make the repayments.
Release Equity in Your Home
Your home is your main asset. You can always release some of the equity in your home to get some quick cash. Releasing equity is essentially about selling a portion of your home temporarily. It doesn’t matter whether you have a bad credit score or not because that asset is yours.
Conclusion – Many Ways to Claim
ays you can get a loan. These five options will either not require a credit score or limit the relevance of the credit score. Have you ever tried any of these methods to get a loan?