Having bad credit always has an effect when applying for loans. Bad credit loans with no collateral can be an even tougher order to fill. The first step before borrowing money is to always consider the ramifications of the new financial commitment. Considering the effects this new payment will have over the next year or two will help you get better control of your finances. They take me time to put together a small plan with steps to move you in the direction of having good credit in the future could save yourself a lot of aggravation. It’s never good being in a tough position and requires credit due to unforeseen circumstances, having bad credit can make qualification a little trickier. The point is not to perpetuate an already difficult situation.
Collateral is a good way to get qualified with bad credit. But if that’s not an option here are the avenues that are available:
Personal loans can be harder to qualify for if they are unsecured with bad credit. They are still an option and if you have solid income can help. If you have three or more years of solid salaried income from the same company and have made you the same or a little more, it puts you in a better position. If you’re using this personal loan to consolidate some credit cards and it will reduce your payments significantly, this too can help a qualified. By agreeing to make larger than minimum payments shows intent to pay the loan back and that is what the bank wants to see.
Student loans don’t require collateral and don’t even look at your credit. The biggest qualification is that you are enrolled in school and will be going for more than a year. This may be an option that you haven’t considered but by upgrading your education will potentially make more money when you’re done, qualify for the loan with no collateral and may not even make payments until you done school. They’re also grants available to the federal government but you wouldn’t have to pay back at all as an additional option.
Signature loans are an option as they don’t use collateral for security but rather your signature and the promise to pay the loan back. These loans are a little more difficult to get with bad credit but are still in the realm of possibility.
Payday loans are a possibility if you have bad credit and want a loan without collateral needed. Be careful with this option as there are significant costs in using them. The benefits are they don’t do credit checks and they’re based on your next payday to secure the loan. They’re more of a last resort but it’s better to have more tools in the toolbox and to be stuck with one possibility.
Whichever option you decide to research it always makes sense to consult a professional it’s unbiased before you act on any advice. By having a broader view of your personal finances its best to take some time and reevaluate where you are, where you’re headed and where you really want to be. By setting a few goals, doing a little research and taking a little action you will have a good chance of having good credit again.