A bad credit score can make it difficult to get a loan, but it doesn’t have to be impossible. There are several loans available to people with bad credit that are easy to get.
What are some of the easiest loans to get with bad credit?
Some of the easiest loans to get with bad credit are personal loans, debt consolidation loans, and auto loans. Personal loans are relatively easy to get, as most lenders will accept a low credit score. Debt consolidation loans are excellent for people with a lot of debt, as they can combine several different loans into one loan. These are also one of the most popular loans to get because bad credit debt consolidation loan options typically have few requirements for approval. Auto loans, on the other hand, can be harder to get. However, plenty of lenders out there will still consider you for an auto loan if your credit score is low.
There are also payday loans, though most financial experts don’t recommend using them. These types of loans can be helpful if you need money quickly and your credit score isn’t the best. However, these loans can also be difficult to repay in full and may end up costing you more in the long run than other options.
How do I qualify for a loan with bad credit?
You can do a few things to improve your chances of getting a loan with bad credit. First, try to make any small improvements you can to your credit score before applying for your loan. You can try requesting a credit limit increase on your current cards to lower your credit utilization or make your payments early, so they show up as paid on time before your credit report is pulled.
There’s also the potential of offering collateral in the form of a property or other valuable asset. However, be sure to speak with a financial advisor before making this decision to ensure you understand the risks involved.
What are the requirements for getting a loan with bad credit?
The requirements for a loan with bad credit are usually the same as the requirements for any other loan. Every lender is different, so their approval processes vary, but they should generally require you to have a good credit score or be able to provide a down payment to reduce the risk of lending to you if you’re credit isn’t great. You’ll need to provide documentation of your income and assets and meet your lender’s eligibility requirements.
How much can I borrow with bad credit?
The amount you can borrow tends to vary based on your credit score and the terms of the loan you’re applying for. However, in most cases, you’ll be able to borrow up to 80% of the value of your home or the value of your vehicle, whichever is less. If you’re not using a home equity or auto loan, the amount will usually depend on your income and current credit utilization ratio. Reach out to your lender to see if there’s already an amount you’re pre-approved for before applying.
The bottom line
Even if your credit score is low, many lenders are still willing to work with borrowers with poor credit. Try contacting several lenders and see which one is most interested in lending you money. You may be surprised how many lenders are willing to help you get started on the path to building your financial health!