You desperately need a loan.

There are bills and rent to pay, groceries to buy, and a pile of unexpected expenses to cover. Alas, your bank balance just won’t cover it.

You aren’t alone! It’s a situation shared by millions of Americans right now. Indeed, the average person in the US has a whopping $38,000 of personal debt.

Clearly, increasing numbers of people are relying on loans to make ends meet.

However, getting the loan you need isn’t easy when you’re credit score’s an issue. No matter the financial need, bad credit can stifle your loan application attempts.

It doesn’t have to though. With the right know-how, you can access the money you need, regardless of your credit score. Sound good?

Read on to discover exactly how to get a loan with bad credit.

1. Know Thyself

This ancient wisdom applies to your forthcoming loan applications.

In simpler terms, you need to understand your current financial situation. In essence, you should know what you’re up against!

Gaining this insight might be painful, but it’s key to realizing what lenders will be looking at. It’s time to review your current credit score.

Thankfully, this won’t impact your score further. Everyone has the right to download a credit report once a year. Do this now by heading to the Annual Credit Report website.

2. Understand the Metrics

It’s one thing to know you have bad credit.

It’s another to understand what that means in numerical terms. Knowing this will help you interpret the report you just downloaded.

Credit scores come with a value of between 300 and 850. The higher the number, the better your credit. Now, there’s no explicit cut off that qualifies as ‘bad credit’.

Instead, loan companies work to ranges.

A score over 700 is what you’re aiming for, but anything between 620 and 679 is reasonable. If yours falls below 580, then, unfortunately, you’re looking at bad credit.

3. Raise Your Score

Okay, when you’re in desperate need of a loan this suggestion might not help.

However, it’s an important step regardless.

Don’t assume that a bad credit rating is set in stone! You can, and should, try to improve it. Improving your credit score will be central to future applications.

Boosting the score will be an inevitable help in getting a loan. With a bit of time on your hands, you could try doing this prior to applying.

Pay off your current debts, make repayments on time, never miss a repayment, and dispute any errors on your credit report.

4. Go to the Gatekeepers

Your current credit score might not prevent you from getting a loan.

It’s worth speaking to the bank or credit union just in case. Now, you might have done this already! If that’s you, then skip ahead.

For everyone else, set up a meeting with your personal bank. They know your current predicament and financial habits- an insight that can sometimes work in your favor when getting a loan. Even if they can’t provide the loan, they might have useful advice for accessing the money elsewhere.

Failing that, get in touch with a credit union. These often have more flexible policies for lower loan amounts, which is an obvious help.

5. Expect Harsh Terms

Credit scores are in place for a reason.

They provide lenders with a method of ascertaining a borrower’s capacity to repay a loan. Bad credit scores suggest someone is less likely to make their repayments.

As such, it’s a greater financial risk to the lender. That, in turn, leads to higher interest rates to make it worth their while.

It’s worth expecting steep interest repayments on any bad credit loan you achieve.

Of course, this tip won’t help you access the loan. It should, however, protect you against nasty surprises down the line.

6. Shop Around

Whatever you do, don’t settle for the first loan you come across.

It’s tempting to grab the first offer you get when you’re in dire financial straits. Don’t do it! There will be all sorts of loan sharks willing to offer you money. Accept their loan and you’re on a one-way ticket to further monetary struggles.

Be sure to shop around instead. You can and will find the right loan. Try to search online and offline to find the best deal possible; compare interest rates and offers from different lenders.

Taking your time upfront can save you hundreds of dollars down the line.

7. Call Upon a Cosigner

A cosigner is somebody with great credit who agrees to repay the loan if you default on it.

Lenders see it as a failsafe- they get their money back, come what may. For you, it can be the difference between getting the loan and not.

Of course, it’s a mighty risk to the cosigner! For that reason, it’s usually a friend or family member who agrees to take on this responsibility.

Struggling to get a loan? Consider asking someone close to you to assume the role.

8. Get a Title Loan

Title loans are another option to keep up your sleeve.

Essentially, assuming you own a car, you offer up its title as collateral. In exchange (and for a fee), the lender offers you the money needed.

You’ll usually have around 30 days to repay the money. Fail, and you may be able to roll over, for another monthly fee. Failure to pay back the money can lead the lender to repossess your car.

Again, expect high-interest rates and fees. Nonetheless, this can be a useful opportunity to access money when you’re desperate.

Desperately Need a Loan? It’s Time to Stop Stressing

There’s nothing more stressful than being in a financial bind.

Life doesn’t stop when your bank balance is low. There are all sorts of daily and unexpected expenses to cover. Sometimes, getting a loan is essential.

However, that’s easier said than done when your credit score is unsatisfactory. As we’ve seen, though, when you desperately need a loan, getting one is far from impossible!

Hopefully, this post will help you secure the money you need, regardless of bad credit.

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