Having bad credit usually refers to someone with a history of failing to pay for money borrowed on time. This can also mean that that person doesn’t have adequate financial capacity at this time to pay for incurred debts. A person’s credit is commonly reflected by their credit scores which are used by banks or other financial institutions to help them gauge the risk of lending someone money.
If you have bad credit it can be difficult for you to loan money with competitive interest rates. But it’s not entirely impossible to get loans from other sources.
There are lenders and brokers who can offer short-term loans to people with poor credit. Several direct lenders are presented with applications for thinkGreen loans making the process streamlined and easy. Having this advantage from a broker makes the process of applying for loans on bad credit easy and fast with prices comparable when you apply directly.
These are some of the types of loans you can get with poor credit:
1. Payday Loan
This is the most common and easily accessed personal loan you can get with bad credit. Many of them are direct lenders that offer short-term loans that you will pay in installments every payday – hence the name. They are useful loans when you are already stretched thin and you need urgent cash. These loans are approved fast with lesser paper works and you can get your money in pretty quick.
2. Business Loan
Banks are not the only ones that offer loans for business start-ups or those who are one year into their business. Only a maximum of 25% of the needed capital of start-ups are funded by banks, the rest are lenders that offer microloans to help get the business off the ground. And if you are good at paying your loans on time, they can report your payments to the credit bureau which could help your credit score.
3. Home Re-Finance Loan
Most people refinance their homes to get lower interest rates and payments. But this can also be a chance for them to get some cash from your home and pay bills or fund some improvements. Even if you have bad credit, there are lenders who are willing to refinance your mortgage.
4. Government Small Business Loan
You can also get government loans for your small business. These loans are through banks or credit unions that are partners with the Small Business Association. The association will guarantee your loans which allows you to borrow money from lenders even if with little experience and poor credit. The SBA can help business owners start and offer business counseling along with matching businesses with lenders.
Direct lenders and other institutions offer loans to people with bad credit to take advantage of the market loans that won’t get approved by many banks. Some of them have low overhead cost by using the latest financial technology and will have faster processing. Others are government or funding institutions established to help people get funding for their projects. Whatever is the case for you, these loans will give you a chance to get the financing you need.