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  • Available 24/7

Finding a lender that will be happy to let you borrow money despite a low credit score is not easy.  Lenders are always going to be more reserved in doing business with people whose credit standing is not that stable. But there are specialist lenders out there who would be more than happy to grant your request for a loan, provided that you met their other eligibility requirements.  

Why Take Out a Personal Loan

The instalment nature of personal loans makes them ideal for people that want to borrow a huge sum of money while also enjoying the convenience of spreading out their repayments into several months. 

These loans are quite flexible too. There is no set purpose that borrowers must adhere to once the funds are released. Unlike other loans where the purpose must be specific, personal loans can be used to pay for just about anything and everything. 

Possible Disadvantages

Since most people take out unsecured personal loans, they will need to have a good credit score in order to get approved and an even more impressive score to get approved for a higher loan amount. This can make them less accessible to people whose credit history has been besmirched.

Options for Bad Credit Borrowers                                     

If you are a bad credit borrower that wants to get a personal loan, you can look for specialist lenders that cater to borrowers with bad credit scores. You might not be able to get a higher loan amount, though and the interest could be high.

You may present a guarantor to get approved too. Another option is to apply for a secured loan. The presence of a guarantor or collateral will often make it easier for lenders to look beyond your bad credit provided that you can also prove to the lenders that you can afford the amount you are borrowing. 

If you’re not in a hurry to get a loan, you should always do what you can to get your credit fixed. From paying your bills on time to getting some of your existing debts paid off, giving yourself a few months to sort your credit standing can make a whole world of difference to your credit score.

Finding a lender that offers consolidation loan is easy unless you have a bad credit history. Loan providers are more likely to reject your loan application if you have a poor credit remark; however, it doesn’t mean that there are no options left.

 

There are lenders who are willing to assist you despite the financial mistakes you’ve done in the past but like other bad credit loans, expect that the pricing and terms are not attractive. Therefore, before you send an application, be sure to shop around first and weigh your options.

 

Below are some of the alternatives you have when looking for a consolidation loan for bad credit:

 

  • Peer-To-Peer Lending (P2P)

Peer-to-peer lending sounds new to a lot of people but this form of a lending platform has been in the market since 2009. Compared to other bad credit loans, P2P offers a lower interest rate and the requirements they have are not as stringent. After all, the “lenders” are just individuals whose main focus is your capability to repay the loan.

 

  • Credit Union

Another good alternative you have when looking for a consolidation loan is the credit union. Unlike banks and traditional lending facilities, “relationship” has a major role in this establishment. If you’ve borrowed with the same credit union for a long time and you’ve maintained a good connection with them, you are likely to get approved. The best part is that credit unions only charge a small interest rate even if you have poor credit.

 

  • Home Equity Loans

 

If you have a property, let’s say your home, and you’ve already set up equity, you can use this as a security against the loan. In simple terms, your home equity can be transformed into cash, which you can use to settle all your debts. Compared to a debt consolidation program, a home equity loan is cheaper and it often comes with longer repayment terms.

Frequently Asked Question

 

What is Personal Loan?

Why do we use it?

Where does it come from?

Where can I get some?

What is Short Term Loan?

Why do we use it?

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Payment Method?

What actually make our lending company very much preferred is because with have the best and most flexible repayment plan. We provide our clients the freedom to choose and get the best repayment plan that will suit their needs and financial status. We make sure that our clients will be able to pay on time without any hassle at all.