Get A Loan With No Credit Checks

One of the requirements for applying for an unsecured bank loan is a good credit history. There are ways, however, for an individual with a less than appealing credit score to get around this restriction. The following is an outline of how to get a loan when your credit is bad.

Provide collateral for your loan application.

When your credit score is low, you can offer a lender a personal possession or a piece of property as collateral. Collateral is what guarantees your repayment of the loan to the lender. Collateral can be in many forms, with the most common one being houses or undeveloped parcels of land. Collateral has to be property that you completely own. Cars and various forms of equipment can be used as collateral for personal loans. Small business, especially start-ups, may use company equipment as collateral when it is otherwise impossible to secure a loan.

Consider applying for a bad credit score loan.

There are a number of lenders who specialize in providing lending solutions to customers whose credit score is too low to warrant an approval by other mainstream lenders. The best part about such lenders is that they will report your account to the credit bureau if you are able to repay your loan on time. This will ultimately help raise your low credit score and improve your chances of qualifying for an unsecured loan in the future.

Find an individual with a good credit score to be a co-signer in your application.

The co-signer can be anyone from a friend to a relative. Since he or she signs the application with you, they will be approached to repay the loan in case of a default. The co-signer effectively therefore vouches for you, and shoulders part of the responsibility of repaying your loan. This option if taken will help raise your credit score when a timely repayment of the loan is made since all the positive accounts here are sent to the credits bureau.

Enlist the services of a loan broker.

Since acquiring a loan with a poor credit history requires the involvement of special lenders, a broker will have the sole responsibility of matching you with that particular lender willing to accept your loan application. Brokers such as mortgage brokers are well positioned to be able to help whoever seeks a loan with a poor credit score. This is from the relationship they build with many banks and lenders. Because of their experience with lenders, brokers will also be valuable when it comes to offering advice on lenders with the best credit terms to the applicant.

Look into the option of applying for a payday loan.

Payday loans are short term loans that do not affect your credit rating since none of the positive accounts or credit reports are sent to the credits bureau. Successfully applying for a payday loan will strictly depend on the applicant’s ability to repay the loan, therefore one will be required to provide a checking account and prove that they have a steady source of income.

Make use of Peer-to-peer lending platforms.

Peer to peer lending services have been around for a while through various online platforms. Over the years, these platforms have been streamlined in order to make them more secure. Generally the idea here is to borrow from an individual as opposed to a bank that will lay strict criterion leaving no room for negotiations.

In peer to peer lending an individual will post an application that will be considered by a number of individuals planning to make an investment through the interest charged. Despite the fact that these platforms require the applicant to post his or her credit score, a potential lender may choose to be empathetic to the applicant’s situation and overlook such details.

Consider informal methods such as borrowing from family members or friends.

Lastly another piece of information on how to get a loan when your credit is bad comes in the form of employing informal means. Your ability to acquire a loan with a bad credit history will only be limited by your creativity. The objective here is to acquire a loan; therefore, if the terms are favourably the source should be of no consequence.

When planning to acquire an informal loan, it is advisable to document the details of the loan, such as the interest rate agreed upon, the collateral and the mode of repayment.

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