What to Do When You Find Out You Have Bad Credit But You Need a Loan Desperately

 

Having a bad credit score can affect many aspects of your life. It can keep you from getting loans that you may need such as a car loan, house loan or a personal loan. It can also affect your ability to find a place to live or even your job title and aspects. There are times that you may need a personal loan and need a way of finding that extra cash. It is good to know that there are bad credit loans and options out there for you.

 

Credit Unions

 

Credit Unions are great non-profit organizations found in many local communities. They are often found in groups of people that have some sort of bond. Such as union workers, teachers, religious organizations and so on. The good thing about this type of loan is that there are no penalties are charges associated if paid early and they are only allowed to charge up to a 3% interest rate on loans. They’re employed by the same people within the organization.

 

Get Help from Family and Friends

 

The first thing that many people may do is to go to family and friends to borrow money that’s needed. Another option is to ask to be an authorized user on one of their credit cards. The one thing that you must remember is that their payment regimen is important. It is also reflected on your credit history. Make sure it is someone that pays their bills on time. Otherwise, it was pointless to go on their credit in the first place. This is also a great place to ask about loans. This is one type of loan where there are no interest fees.

 

Bad Credit Loans

 

There are many places that offer bad credit loans as well. These places allow those with a lower credit score the ability to get loans for any of their needs. It is good to know where to look for these loans as well. These are the best type of loans for those with bad credit. It’s paid back in monthly installments and has the lowest rates. You also help your credit get better when you make your payments on time every month.

 

Other Types of Loans

 

There are some places to go to that offer payday loans. These are short-term loans that are due at your next payday. They are installment loans and sometimes have a higher interest rate as well. Another alternative loan is a title loan. This type of loan is for those who own their vehicle. With this type of loan, the company puts a lien on the car title and give the owner cash. The owner will receive the title back for the vehicle when the money’s paid back in full to the company.

 

Finding the funds, you need with bad credit can be hard and stressful. The best thing to know is that it can be fixed. Try to use the means of funding as a way to build your credit. You can get a free copy of your credit from all three credit bureaus once a year at www.freeannualcreditreport.com.

Author Bio: Adrian Rubin is a climate change advocate and freelance writer.

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