Are You Looking for Bad Credit Loan?
Many of you must be looking for bad credit personal loans guaranteed approval no credit check, which is usually hard to find. However, there are few financers available who can help you in your situation.
Let us therefore know what bad credit loan is and also what bad credit score is.
Bad credit loan
Usually, while applying for loan, any bank or financial company will check your credit rating first before approving a loan. If case your credit rating is found to be poor then your chances of getting loan will diminish.
Therefore, choice for taking loan in such condition becomes very limited. So, in case you suddenly fall under certain emergency like medical illness or urgent repair work, then how can you arrange a loan?
It is in such condition, you need to look for certain financiers who are ready to offer you a bad credit loan, so that you can bail out from such emergency situation.
Bad credit loan is almost similar to a personal loan. Here too you will borrow money and you need to return back your money with monthly instalments.
Now most of you would like to get such loan at an affordable interest rate as well as on flexible terms which is usually difficult if you have got bad credit score.
So, you have got following options:
- Approach to credit union where maximum rate of interest can be 18%.
- Try to get from your family or friends who may offer lower interest rate.
- Get any co-signer who may be having better credit score
- If you have got home equity then too you can get loan
- Approach to any online lenders.
Few other options can also be like:
- Loan for retirement account
- Loan against insurance
- Payroll advance
However, all these can be your last option, only if nothing else is available to you.
Bad credit score
Your credit score will indicate whether you are capable of repaying your loan. Higher is your credit score, better will be your chance of repaying loan. That is the reason why most of the creditors thinks that it is risky to offer loan to people having bad credit score.
Credit score is usually between 300 to 850 and if your score is below 650 then you will be entering in bad credit zone.
However, loan givers have their own criteria to consider which score is good or bad. Some creditors may not consider those having below 650, while few will target only those who have lower credit score.