Everyone knows that bad credit is something to be avoided. After all, it flags many things to banks and investors about you; can you manage money? Do you overspend? Are you responsible, or irresponsible in general? If you have the shadow of bad credit looming over you, then those with loans to offer will refuse you help.
Still, when financial concerns cause serious worry, many assume that a loan is the last thing they need. Although many banks will refuse to issue you a loan if you’re provably unreliable with money, other parties will try to help.
Consequently, here’s how to get that loan you need when you’re being hounded by a bad credit score.
Make a Change
The main issue with bad credit is that it signals to banks and investors that you’re not good with money. For example, if you don’t repay bills and loans on time, then these factors will directly impact your credit score. It’s a financial history, and if it’s not in your favour, a stuck in the mud affect can follow soon after. Get out of that funk at all costs!
Roll up your sleeves and get proactive. If you can prove to lenders that you’re improving (i.e. paying back bills and existing loans on time), they may eventually be inclined to help you if your atrocious credit score has been bumped up to a sub-par one. Remember, if your bad credit score looks like a quick blip in the road more than a big black smudge on great swathes of your life, mainstream services might just help you anyway.
Enlist a Guarantor
Borrowing money is a matter of trust. If you have a poor financial history, lenders won’t trust you. However, there are people in your life who may be more responsible with money. Under the right circumstances, they may be able to help you get your loan.
For example, you can enlist a guarantor. Make sure that this is a financially responsible party who is close to you; e.g. parents, siblings, partners etc. This will ensure that banks or other loan companies will get their money back one way another and will subsequently make them more likely to offer you the loan. Also, if you’re accountable to someone you care about and see every day instead of a faceless bank, this might better incentivise you to get on top of your finances.
Look at the APR
Don’t exacerbate your issues by going to a company that will charge you a high annual percentage rate (APR). These kinds of systems aim to exploit desperate people who aren’t savvy with managing their own personal finances. Read the fine print on every scheme you’re going to give your money too and make sure the APR is at a reasonable price.
For example, Likely Loans offer very reasonable APR rates for their bad credit loans, making sure that all borrowers get a fair deal without affecting their credit score. At 55.9%, there’s no better deals out there. Unlike their rivals, they put the interests of their customers and clients first, and ensure they’re not enrolled on a heavily taxing scheme for the years to come. If you want pure and honest help with your loans and bad credit, head to Likely Loans.