If you have a poor credit rating, then getting a bad credit loan isn’t always an easy thing to do. However, with the right advice it’s certainly possible to secure a loan – even if it seems like every company is turning you down. With this in mind, we have a few tips that will give you a better chance of winning that all-important bad credit loan – so let’s begin.
Tip 1 – Try a credit union
If you’re struggling to find a bank to give you a loan, how about contacting a credit union instead? These institutions work similar to a bank, but they’re owned by the members of the union. This means you will be able to discuss your loan with the other members of the union, and ultimately you’ll have a better chance of securing the loan – as well as improving your chances of paying a lower interest rate.
Tip 2 – Try a peer to peer loan
Another fantastic way to receive a loan if you have a poor credit rating is to use a peer to peer loan service. These systems are actually quite new, and the internet has made them incredibly popular. Since their creation in 2005, many thousands of people have managed to secure loans via a peer to peer lending system, and your interest rates will often be astonishingly low compared to the rate a traditional bank is likely to give you.
Tip 3 – Try your family and friends
While it’s never very enjoyable to ask for money from your family or friends, there’s no denying that this is often the best source of a loan when all the banks and alternative loaning systems are turning you down. Of course, it’s crucial to ensure you pay these people back – because you don’t want to strain your relationships to fix your financial situation.