Personal loans can be used to pay for unexpected expenses such as medical bills or home repairs and to consolidate debt. However, lenders will often do a credit check before approving a loan. So, what can you do, or where can you go if you need better credit?
Generally, banks require a credit score between 610 and 640 before granting a loan. However, there are other ways that you can get a loan. Here are some of your options and the pros and cons of each.
A person who co-signs the loan essentially vouches for you and promises to take over the loan if you default. Of course, they must have a good credit score and present the necessary financial documents.
While you can enjoy the benefits of that person's good credit standing, including lower interest rates or payment terms, finding someone willing to do this for you may take some time. As a result, the approval process is much longer.
This may not always be viable if you need emergency money immediately.
A secured loan requires that you give collateral as security for the loan. This can be a car, house, boat, or anything of value. The collateral must be registered under your name, fully owned, and not currently used as collateral for another loan.
With secured loans, you may be able to borrow higher amounts of money based on the property's value. However, these loans should not be taken lightly—if you miss a payment, the property can be seized.
While some lenders are very strict about credit scores, others specialize in providing loans for people with lower scores or who have not established much credit history.
Simple Fast Loans is a specialized lender. So, while credit history is looked at, the company is more flexible about requirements. Even people with bad credit can apply for emergency loans.
Furthermore, no collateral is required.
Simple Fast Loans provides one of the easiest and fastest emergency loans for people with bad credit.
Simple Fast Loans offers personal loans that allow you to borrow a fixed amount of money. However, you will pay this amount over several months. This is a good option if you are on a tight budget.