Your Options

It is ironic how people who need money most cannot borrow funds because they have poor credit scores. Despite the irony, there are personal loans for people with bad credit that you can rely on in case of emergency. Here are your borrowing options.

Bad credit loans

Personal loans for people with bad credit come at a ridiculously expensive interest rate. That is why you should proceed with caution when applying for this type of loan. The good news though is that most financial institutions offer fast approval. Although there are limits to the amount you can borrow, the fact that you can still get a loan despite having bad credit is a good start.

Credit Unions

Generally, it is easier to get personal loans for people with bad credit at credit unions than from a bank. The credit standards for these lending agencies are much more relax than a bank as well. In fact, membership may be based on your profession of the neighborhood you live in.

On the flip side, the amount of money you can borrow depends on your credit score. Unsecured personal loans for people with bad credit have shorter loan periods as well.

Peer-to-peer loans

This type of lending is newer compared to the other options. However, its popularity proves its reliability. You can find peer-to-peer loans by searching websites that enable potential borrowers to acquire loans from individual lenders instead of corporate financial institutions and banks.

The downside, however, is that these websites have high qualification standards. You will also need to work to raise loans from individual lenders. More importantly, interest rates can go as high as 36%. Finally, you may look at other options if you need the money right away. Most individual lenders can provide the money in a week or two since you applied for the loan.

Co-signed loans

This qualifications for this type of loan has nothing to do with your credit score. It offers more flexibility and lower interest rate. However, having a co-signer means you are also putting their credit score at risk. It is added pressure since your relationship with your co-signer might be at risk should you fail to pay the loan on time.

These are some of personal loans for people with bad credit options to choose from. Remember to have a payment plan before signing up a deal. Remember your future financial stability is at risk by applying for more loans to pay off other loans.