Bad credit isn’t just for the fiscally irresponsible among us.
Life happens sometimes, and we can fall behind on payments, borrow a little too much, and keep the cycle of debts going. Eventually, we may find that our once good credit score has sharply fallen, and we now are the proud owners of some really bad credit scoring.
Okay, so not necessarily proud, but our credit’s still bad.
What are people with bad credit supposed to do, just never be eligible for loans again? No, of course not. There are always options.
Here are a few of those options for finding lenders to give you loans for bad credit.
So, you need a personal loan but have bad credit. Why not check out a loan aggregator? These are online platforms that exist so lenders and would-be borrowers can find one another and do business. Aggregators are for everyone, even people with bad credit. Borrowers simply complete a loan request and receive offers from lenders based on the information they have input. This is definitely an option you will want to check out for yourself.
If you need something more along the lines of quick cash for a short period, payday loans might be for you. You can get these loans even with bad credit. You typically borrow a small amount, say a few hundred dollars, in between paydays. You and the lender agree on an interest rate or fee schedule. Then, you pay back the loan in two to four weeks after you have gotten paid from your job again. Payday loans could be for you if you have bad credit and need fast cash to pay off another debt. Just be mindful of high interest rates.
The final option we are mentioning here is peer-to-peer lending, which is a great choice for borrowers but carries some risk for lenders. Peer-to-peer loans are those made between individuals on a peer-lending website. This is also sometimes known as “crowd lending.” Anyone can use a peer-lending platform to loan and borrow someone money. Those lenders can also charge high interest rates, as in, more than 30%. This is a good option for all if and only if the borrower repays the loan according to the terms. Defaulting on loans is common with peer lending, so it is the investors who must watch out when doing this.
We hope you’ve learned something from this list about a few of your choices for getting financing with bad credit. The world is not over just because you have bad credit. You can still borrow money from plenty of people. Just play it safe and look out for the interest rates.