If you have a bad credit score then getting a loan can be a big headache for you. Lending institutions such as credit unions, banks etc. have strict standards and they choose their borrowers based on their credit scores. Thus, it is very obvious for a lender to not choose someone who has poor credit score because it does not assure the lender whether the loan can be repaid or not. So, managing to get a payday advance with bad credit score can be a big problem since you are actually at the mercy of those payday lenders.
Well, there are few solutions that might help you to get a loan.
- Firstly, you can pay a visit to the credit union. These are like any other commercial bank but they are non-profit institutions that pass all the earnings to the members in the form of borrowing costs and lower fees. In case, if you plan to seek a loan from some credit union then prefer the one with which you share some common factors. Say for instance, if you had a working history with the armed forces the go for Navy Federal Credit Union.
- There is no harm in seeking a loan from friends and family. You can always create a contract mentioning the interest rates and other loan terms to avoid any problem in the future.
- You can even opt for a home equity loan in case if you own equity in your home. This type of loans can be received even if your credit scores are really very poor keeping your home as a collateral. Since the loan gets secured by the house, the interest rates charged a quite low.
- You can even approach for online personal loans. These are easy to apply and your bad credit score might not be considered.