All about the challenges of Midlife Finance

Loan Options for Those with Bad Credit

You’ve cornered yourself financially and you’re running out of options. Everyone else in your life seems to know what you need to do, but none of them are in your shoes so how could they be so sure? They tell you that you need to be smart with your money and start a budget; they think you’re just blowing it on things that don’t matter. You know that you’re doing the best you can with what you have but that doesn’t change the fact that you need money, and you need it now. Lucky for you there are a number or responsible options to help people with bad credit, find loans to get out of the deepening hole they’re in.

There are some non-profits and government agencies that provide specialty loans that work for individuals with bad credit. In addition, many banks and credit unions also have loans that are similar to payday loans but without the ridiculous interest rates and fees.

Avoid Payday Loans

Payday loans are a viable source for a quick loan but should be a last choice if at all. They obviously fill a niche but just aren’t great options for low income earners or those going through financial hardship. They essentially put these types of borrowers deeper into debt whilst further ruining their credit score.

If you are under extreme financial pressure it is important to be very careful on the decisions you make in regards to your situation. Taking on easy credit may see like a fix but in reality is just a band aid solution to something that will blow up any way. Try not to make important financial decisions while under pressure or stress.

Short Term Loans

There are lenders who offer funds from $300 to $5,000, which seems like a great deal for those who have been denied by mainstream lenders, but you always need to do your research on the loan terms and interest rates. These generally come from credit unions or small local banks; you may have to ask for these specialty loans as they are not always actively advertised.

In addition to these options, peer to peer lending is rapidly becoming popular and an ideal way to borrow money for those with bad credit or low incomes.

Being in debt and having bad credit is hard and others may think they know what’s best for you, but sometimes you just need money to get you through unexpected circumstances—you have options. The loans discussed above are the two main ways that people with bad credit are securing funding for various aspects of their lives. It’s important to note, however, that there are scams out there and you must be careful when divulging any of your personal information. It’s a good idea to check sites such as the Better Business Bureau and even call the company phone number to talk to someone and make sure the company isn’t fabricated.

Leave a reply