Friday, July 12, 2013

Want to Get A Loan with Bad Credit? Here are 3 Simple Steps!

Loans
Loans (Photo credit: zingbot)
So you have taken a number of loans in the past years in order to manage all those daily expenses and pay off those huge medical bills and utility bills. With such credit crunch and price hikes, it becomes next to impossible to manage all the expenses; and after that, there are always emergencies for which you need to arrange the money somehow. In a situation like this, taking loans is the only solution. Since getting traditional credits from banks or other sources becomes a little difficult as it involves a huge time and the process, too, is time consuming, it is preferable to opt for loans with bad credits from personal lenders. If you are not too sure how to get a loan with a bad credit, here are some simple tips - 

  • Apply to Credit Unions - Credit unions are similar in nature to banks but these are owned by people who have something in common, like they must be working in the same industry or they should live in the same geographical location. These are non-profit organizations that pass along its earnings to the members in form of higher customer service and lower fees. Research online a bit to find the credit unions in your locality and give them a call to discuss if you can get a personal finance. Make sure you compare the loans from a number of different institutions in order to ensure that you are getting the best possible loan, with lowest possible interest rates.
  • Use a home equity credit - If you have a home or a similar property like that, which can be kept as collateral, you can use that in order to get the loan. Well, it is of course a bit dangerous to keep your house as collateral since it will be seized by the lender, if you fail to pay off the debt in a timely manner. But then if you have a reliable source of steady income, and if you are disciplined enough to pay down an equity line thoroughly, it is really a cheap option to consider.
  • Try to get a peer to peer finance – If you can't manage a credit from the sources, mentioned above, you can try to get a credit of considerable amount from this platform. This is a means of getting cheap bad credit loans from a particular individual directly instead of an institution.


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