No matter what types of credit mistakes we make in the past, everyone deserves some peace of mind when it comes to personal finances. Fortunately, there are many types of loans designed to help those with a poor credit history. By taking advantage of one of these three types of loans you can start taking care of your financial needs today.
Try an Installment Loan
Installment loans are a great way to solve your financial problems in a cost effective way as they tend to be the most flexible in terms of when and how they are paid off, either over a short or long period of time. These loans are often custom tailored to your individual needs and are relatively easy to acquire as they tend to be distributed locally. However, unlike other locally acquired loans they are considered to be even safer than payday and title loans.
Credit union loans
Credit Unions are great alternatives to commercial banks when it comes to acquiring a loan with poor credit. This is mainly because of the fact that they are non-profit, meaning that excess earnings are used to help reduce fees and costs associated with the servicing of their clients instead of paying their stockholders as private for profit creditors must do. These creditors also tend to actively seek borrowers no matter despite poor economic outlooks that may prevent more profit driven banks from lending easily. It is important to meet with a Credit Union and convey your character as to give them a reason to look beyond your bad credit and this is often proven to work.
Consider using your home or property
There are two major types of loans which you can use your home to acquire credit with, a “Home Equity Loan” and a “Home Equity Line of Credit”.
What makes a home equity loan great for those with bad credit is that it can be obtained no matter what your credit score is. By using your home as collateral, you can attain a low rate of interest that can even be deducted from your taxes.
Alternatively, a “HELOC” can be described as a lump of cash that can be used when needed. Like an installment loan, the payback rate and time schedule is determined up front, however, unlike most loans this one also uses your home as collateral, helping to initially receive the sum of cash. However, it is important to remember that although it is easy to acquire this loan with bad credit that your home could be at risk if you do fail to pay the loan back.