If you’re in the unfortunate situation of having a poor credit rating, then there’s no denying how difficult it can be to secure a loan – especially if you want a loan that offers favorable interest rates. However, despite the obvious difficulty you may be facing, there’s actually a variety of useful options available for people who have bad credit ratings. In this guide, we’re going to examine some of the best strategies for obtaining a bad credit loan, so let’s begin.
Tip 1 – Peer to peer loaning
One of the best ways to get a bad credit loan is to use an online peer to peer lending service. These services have become very popular over recent years, and will usually give you better interest rates than a traditional bank (commonly as low as 6.5%), so it certainly works out much cheaper in the long run.
Fortunately, there’s several excellent companies within this industry – so if you go with an established and respected brand such as Lending Club, Peerform, Prospect or People Capital – you should be able to find an excellent loan with reasonable terms. Ultimately, this is one of the most effective ways to secure a loan, especially if you have a poor credit rating.
Tip 2 – Ask your friends and family
If you have a bad credit rating, then many lending institutions and banks won’t be too eager to lend you the money you’re looking for. However, you may have a better success rate by asking your friends and family. Of course, this can always be difficult, and it may strain your relationships and put you in an awkward situation. However, if you have a relative or friend who is willing to loan you the money, this can be the best thing to do until your credit rating improves.