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.
If you need emergency money now, this may not always be a viable option.
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 will be very strict about credit scores, others will specialize in providing loans for people with lower scores or who have not established a long credit history.
SimpleFastLoans is a specialized lender. Understanding that people may have financial problems, especially during the recent pandemic and the inflation crisis that followed. So, while credit history is looked at, SimpleFastLoans are more flexible about the requirements. Even people with bad credit can apply for emergency loans.
Furthermore, SimpleFastLoans does not require you to have collateral.
Simple Fast Loans provides one of the easiest and fastest emergency loans for people with bad credit.
You can choose from three types of loans: personal, installment, and lines of credit.
Personal and installment loans allow you to borrow a fixed amount of money. However, you will pay this amount for installment loans over several months. This is a good option if you are on a tight budget.
In lines of credit, you are given a credit limit. You can borrow any amount at any time if you stay within that limit. You are charged interest only on the money you borrow.
Your credit score shows how you have handled loans in the past. Let's look at how a credit score is calculated. Factors include:
As you can see, your score's two most important components are your payment history and the amount owed. So, by taking out a personal loan and then paying it off on time, you can prove that you are a responsible borrower.
If you have only used credit cards in the past, taking out a personal loan, installment loan, or line of credit can improve your credit mix.
SimpleFastLoans can even help you increase your length of credit history. If you can make several payments on time, you become eligible for an increase in your loan amount or your maximum credit limit.
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