Unfortunately, past mistakes can come back to haunt you in the worst way. When it comes to finance, a truer word has never been spoken. For obvious reasons, lenders don’t want to fork out cash that they don’t think they will ever get back. But, on the flip side you don’t want your past to have such an effect on your future. What can you do? There are always options, don’t forget that. Even if you have bad credit, you can still get a secure and sensible loan from legitimate and reputable sources. Let’s be honest, you aren’t the only person who has struggled to get a second chance financially. Here’s how to seize that second chance with both hands.
Use Home Equity Credit
If you have equity in your property, you could use that as a quick way of securing money to use any way you like. It is a low-interest and tax-deductible line of credit, so it won’t cost you more in the long run like a lot of loans do. Of course, there is a risk. If you can’t the money back, your property could get repossessed. But, if you are organised it is a cheap option for people with high credit scores.
Peer To Peer Loans
The problem with most loans is that you are borrowing from institutions. As we have seen in years gone by, the majority of these institutions are not reliable and can’t be trusted. However, there are other options, like lending from an individual. It is a win-win situation for both parties because you at a much lower interest than the banks and the lenders still make a lot of money from the transaction. For example, you can borrow for as little as 6.5% that returns as much as 10.5%.
To take away the risk of lending from an individual, use a trusted website that regulates both users and lenders like Prosper or People Capital.
Small To Medium Business Lenders
Business lenders specialise in obtaining loans for small to medium-sized companies. Better yet, bad credit isn’t an issue. That shouldn’t reflect poorly on the company; they just understand how hard it can be when you don’t have a good credit score. There are a string of other measures in place to ensure everything goes to plan repayment wise, but they are a lot more flexible than banks. Companies of this ilk make securing business loans with bad credit a lot easier than conventional avenues.
Get A Co-Signer
You might not have good credit, but someone else will. If they are willing to co-sign a loan for you, their credit score will trump yours and secure the cash that you need. There is a lot of responsibility on your shoulders because if you default the co-signer has to pick up the slack. As a result, you will need a person who fully trusts your ability to pay the loan back. Otherwise, they won’t be willing to sign on the dotted line.
Just because you have bad credit doesn’t mean that is the end of your dream. All you need is to handle your future or an angel that is willing to put their faith in you.