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Getting a Loan that is Not Dependent On Credit Score
There are a lot of loans available in the marketplace; however, most of the best loan offers are only available to those with good credit remark. Meanwhile, those with poor credit suffers from rejection or paying for excessive interest rates.
So what should you do if you want an advance but don’t have good credit?
Getting a loan with bad credit is challenging, but not impossible. Here are the sources you can consider when you need cash with a poor rating.
When your credit is not in good shape, the only option you have in mind, perhaps, are payday loans. However, it’s not the only loan you can have and you should avoid it at all cost. What you should consider instead are personal loans which may also charge an expensive rate if you have bad credit but if you spend time shopping around first, you can find a lender who can offer a cheaper alternative.
Find a credit union nearby and create a relationship with this establishment. This will help build their trust and confidence in you. This will benefit you in the long run since unlike banks, they offer a more personalized experience. In addition, the interest rate and fees they charge over the loan are affordable, too. All you need to do is open a deposit account with them and ask if they can offer you a loan.
Get A Guarantor
When you have poor credit, you can get a loan by asking a guarantor to cosign the contract. If they have good credit, your loan application is more likely to be accepted and you can score a better interest rate. However, if someone agrees to guarantee the loan for you, be sure that you will not default on it as it will not only damage your credit history but also your relationship with them.
Loan Options for the Unemployed
When you’re in need of quick cash but you have no job, your options are very limited and one of which is a payday loan.
A payday loan is a short-term, unsecured loan that’s suitable when you need access to quick loans. You can get it almost anytime you need and anywhere you are as long through an easy process. This means that you don’t have to endure long queues, talk to different lenders and representatives, and submit a handful of paperwork.
How To Get A Loan When You’re Unemployed
Even without a job, you can apply for a quick loan provided that you have an alternative source of cash. It can be a pension, benefits, child support, or a bank statement. To start the application, you have to shop around first to know which lender offers the best rate and to avoid lending companies that might take advantage of your situation.
Once you found the right payday loan provider, all you need to do is fill out the form found on their site completely. Basically, it will ask for your name, contact details, bank account, etc. After submitting the form online, it will be verified on the same day and once approved, you can have the fund you need to be deposited to your bank account on the next business day or after an hour -- depending on the lender.
Watch Out For Expensive Rates
Without a doubt, payday loans are easy to acquire; however, it is expensive by nature. Since there is no collateral or guarantor involved, the lender is more at risk and applying a high-interest rate is one way to compensate for it. Therefore, to help you save money from the interest, what you can do is to shop and compare a number of payday lenders first.
Aside from the interest, make sure that there are no hidden fees charged. In addition, you can check the reviews they have from their previous clients to know more about their service.
Using Cards for Loans Based On Income
Sometimes a bad credit score can hold you back during a financial emergency. When in need of a quick injection of cash and you apply for a loan but don’t have a valid bank account open – hindering you from getting that loan. What then?
Luckily, times are changing and technology is evolving and along with that comes with new options. Short-term lenders now can give you cash through your prepaid debit cards. Giving you the ability to pay any necessities.
How Does It Work?
When applying for a short-term loan on any lender, once approved – the lender transfers that funds to an eligible account, and then will register a prepaid debit card using said account. Once ready, you can either get the card personally from them or have it shipped onto you.
Typically, a prepaid debit card needs to be registered under your name. You can do that in person or online.
Can I Use the Card for Other Loans?
If you’re in need of another loan in the future, then for a fee, you can receive funds from said card again – even with a different lender.
Not only can you use it for your loans, you can use your debit card so that you can receive direct deposits, giving easy access to your paychecks, and tax refunds.
Consider this When You Apply for One
No matter how much you change the name of the loan, it doesn’t change the fact that it is a payday loan, and payday loans don’t have a good reputation. It comes with astronomical amounts of interest rates and fees. One slip-up and you could be under more debt that you can imagine. Due to how predatory payday loans are and how scummy some lenders are, the government has set a regulation that limits how much you can borrow and for how much duration.
So make sure that you have a clear plan in repaying your debt. Pay it off as early and fast as you can.