Securing a Personal Loan with Bad Credit
When loans are needed to pay certain things like Medical Bills or other important life events, it’s nice to have a good credit score. But what about for people with bad credit? Are there loans out there for them? Well, it depends on the loan provider of course. Credit scores are provided to show if you’ve had the ability to pay off debt previously. People who have never even tried a credit card or loan will likely have a bad credit score. It’s the chicken or the egg theory but with a credit score.
Check Your Credit Score First
There are a few ways to get a credit score. We’ve partnered up with Credit Sesame to provide you a free score with a sign-up. You’ll need some personal information like a Social Security number, as this is how most bankers and institutions identify your previous records. Here are the general rules when it comes to how good your credit is:
- 400 – Poor
- 500 – Poor
- 600 – OK
- 700 – Great
- 800 – Awesome
Once You’ve Found Out Your Score: …And it’s Poor
So you’ve found out you don’t have that high of a credit score. It’s OK. There are so many ways of improving your score, but one thing is for sure: It will take time to rebound. Some have claimed to increase credit scores rather quickly, and it’s certainly possible, but you’ll need to pay off debt. Think of debt being the goal in hockey. If you’ve paid off the debt or “scored on the goalie,” you’ll receive a point.
If you need a loan now, there are a few options. One we recommend is using a service called EVEN. By applying through EVEN you’ll be sending your application out to several personal loan providers like Best Egg, Prosper.com, Payoff, and Lending Club (a few others). In doing this, you’ll open up more opportunities and spend little time and effort applying to institutions.
Still Not Approved? Try Credit Counseling!
Many people have had debt and credit issues, so no worries! There are many credit and debt counseling companies that will help you get on the right track in not only improving your credit score but overall financial outlook. Try our partner Debt.com (Consolidated Credit) for more information there.
June 19, 2018
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