Everyone will go through some financial problems and people borrow the money from the sources like lenders or banks. To apply for a loan, maintaining good credit is a must. There are many people who have poor credit or with no credit. If you fall in this case, then getting a loan for you is quite a difficult task. Because if you have bad credit, you are considered as high risk and it becomes default to make your loan amount on time. Until you increase your credit score, most financial companies and banks will step backward from offering loan to you. There are still some options which are open to you, but with the risk of putting your personal assets as collateral.
- Find someone to borrow from – getting money from your friends or family is the best option to consider. Because the known person may give you money with a better rate and flexible terms.
- Agree to terms – make an agreement with them about how much money you are borrowing and the repayment details along with the interest.
- Getting it in writing – it is better to put your agreement in writing. The lender may ask you to sign a promissory note and also to be notarized to make it a legal one.
- Ask about co-signing – if you need to bowwow a larger amount, then ask any of your friends or family to co-sign the agreement to make a safety measure to the lender. If the individual who is co-signing for you has maintained a good credit rate, then you can get a large amount of money.
- Find a local credit union – these are local banks owned by members. Because it is a business model, these unions will tend to have lower fees and credit score is not considered.
- Open an account – as these are owned by members, you should create an account. It is same as opening an account in a bank.
- Applying for a payday loan –The amount which is denied by the bank can also be offered by the payday loan lenders. You can apply the loan amount around $100 to $500 through online. You can get a quick loan, even if your credit is terrible and it will be helpful for you at the time of emergency.