Down on Your Luck? Be Creative When Searching for Loans
You’re not alone if you suddenly find that your credit score has plummeted and you’re being turned down for a consumer loan or additional credit. The dismal economy of the last few years has blemished the financial balance sheet of some of the most conscientious consumers. Even if you faithfully paid your mortgage, car payments and credit cards on time, the loss of a job can catapult you into a situation where you must juggle bills and other obligations just to survive.
So what do you do if you need to secure a loan, but you find you have bad – or no – credit? There are several non-traditional options available to borrowers, or options that you might not think of. The first very viable option is a credit union. They tend to be more flexible when it comes to evaluating the credit-worthiness of applicants, so look for a credit union for which you might be eligible to join. Credit unions usually have more favorable terms for both borrowers and savers. They are especially good for car loans.
The next option for people who have not yet become desperate enough to seek loan sharks online is a peer-to-peer lending service. These are individuals who are willing to give loans to other individuals, usually at much lesser rates than banks. Since their overhead is low, they can afford to provide more reasonable rates. They will, of course, check your background and credit, but they may also be more likely to take your individual circumstances into account, so any red marks on your credit report have the opportunity to be explained in person.
Getting a loan when you have bad or no credit may take some work, but there are programs out there that work with those who are down on their luck. Check around and you’ll be able to find something that is a perfect match for your situation.