It can seem like getting a loan is nearly impossible if you have a very low credit score. The truth is that there are actually plenty of options available. The more time you take to look into these options, the better your chances will be of getting approved. In this article we will present some helpful tips to increase your chances of getting the funds you need. These tips can work for virtually anyone with bad credit.
Check Your Own Credit Out
Before you start filling out loan applications, you should check to see what your credit is really like. This can be a bit painful for some, but it is necessary when you want to get a loan. You can get a free copy of your credit report from each of the three major credit bureaus once per year. This information can help you manage your expectations accordingly. It also presents with the chance to look for any items that don’t belong. If you notice any errors on your credit report, you need to make the bureau aware of the mistake right away. This doesn’t take a lot of time and could benefit you in a big way.
Apply for a Payday Loan
Payday loan have become one of the most popular options for those with bad credit. While it is still technically possible to get denied based on your credit, it is fairly uncommon. Most of these lenders tend to pay closer attention to an applicant’s income, job history and other factors. Having bad credit is definitely not going to automatically disqualify you for this type of loan.
Applying for a payday loan is very simple and easy, and it can be done entirely online. You could get the funds you need by the end of the day. There is no borrowing option that is faster or more convenient than this one. Millions of people in the U.S. with bad credit have been approved for these loans, and there is a good chance you will too.
Find a Co-Signer
A co-signer can also boost your chances of getting approved for a loan despite the fact that your credit isn’t great. Your co-signer will assume responsibility in the event that you are not able to pay back the money you owe for any reason. Just keep in mind that lenders have their own set of standards for co-signers, so you can’t use just anyone. This person will need to have good credit, a solid work history and adequate income. Make sure that you find someone you can trust for this role.
Don’t Pick the First Lender you find
You never want to borrow from the first lender you come across, because you are just asking for trouble. Even those who want to get a payday loan should make a point of choosing a reputable lender. There are plenty of ways to narrow down your list of lender options. You can go online and read reviews for some of the different businesses that give out these loans. This research can be invaluable when it comes to getting the best overall deal. It will also increase your chances of approval, which is very useful if you bad credit.
Applying with a bank for a loan when you have bad credit is typically not a good idea, because you are just wasting your time. The sad fact of the matter is that most banks won’t approve people with low credit scores. This is why so many Americans are gravitating towards private lenders who give out payday loans. There are lots of reasons to avoid a bank for a loan, such as that it can take a while to get your funds even after getting approved.
Don’t Try to Negotiate Too Much
If you have bad credit you probably don’t have much room for negotiation, so you’ll need to keep that in mind. There is nothing wrong with trying to get the best terms for your loan, but just remember that your borrowing options are limited. Most lenders aren’t willing to negotiate very much with applicants who have a lot overall credit score.
Before you go ahead and submit any loan applications, you need to keep all of these things in mind. These tips can help you out in a big way when you are trying to borrow money. Whether you need a couple hundred or a couple thousand dollars, you need to be prepared. This information can really help you with getting a great deal on a loan with bad credit. The truth is that your credit isn’t as much of a limitation as you might think. There are tons of private lenders that are willing to approve people with bad credit.
There are certain things you should do and avoiding doing when applying for a payday loan. This information can save you a lot of aggravation when you are going through this process. Many people are eager to get the funds they need, which leads to make a lot of mistakes. While the payday loan process is fairly quick, you shouldn’t rush through it. Instead you will want to take your time and give everything its due attention. This will ultimately increase your chances of getting approved.
DO: Apply Online
You may be able to get a paper application from a local payday loan business, but doing it online is so much easier. Applying for one of these loans online takes several minutes or so, and it is all very simple. Make sure that you confirm the websites you apply on are secure beforehand so you don’t risk having your identity stolen.
DON’T: Lie On Your Application
A small “white lie” on your payday loan application might not seem like a big deal, but it can prevent you from being approved. There is a very good chance that the lender will know you are not being completely truthful. This is why it is always a good idea to just give the lender the facts and nothing else. You will need to submit proof of income, so there is no point in lying about that. Those who are completely honest in their applications have the best chance of getting the loan they need.
DO: Apply Early in the Day
If you want to get approved and receive your funds the same day, you should apply early in the morning. This will give the lender time to review your application, give you a response and transfer the money into your checking account. Those who wait till late in the day to do this might not get a response until the following day.
DON’T: Submit Too Many Applications
Submitting a bunch of payday loan applications within a short timeframe can be very detrimental to your credit. This is because each lender will run a “hard” credit check on you, which can make a small but negative impact on your score. One application isn’t going to do much damage to your credit, but a lot of applications can. This is precisely why you should refrain from sending out a ton of applications within just a week or two. Wait for the lender’s response before you even consider applying with another one.
DO: Have Some Extra Cash Set Aside
While it might not be possible depending on your situation, it’s always a good idea to have some money set aside before getting a loan. If you have trouble paying the money back for whatever reason, you can use this money to avoid a disastrous situation. The last thing you want to do is to be late paying back your loan. Your credit will take a serious hit, and you will have to pay some hefty additional fees.
DON’T: Borrow More Than You Need
Before you even decide to apply for a payday loan, you need to know exactly how much you will be asking for. This is something that the lender will ask you to fill out on the application. You never want to borrow more than you absolutely need. As tempting as this can be, it is always a bad idea. This is because you will be required to pay interest on the money you borrow. The more you borrow from the lender, the more you will end up having to pay back.
DO: Look for the Right Lender to Apply with
There are so many different private lending businesses that give out payday loans, so you have to narrow down your options. You certainly don’t want to choose just anyone to apply with, because you’ll most likely regret it. A good lender can help you get the money you need while giving you a reasonable overall deal. This will also seriously boost your chances of being approved. You don’t want to rush into this kind of decision, as it is very important for a number of reasons.
You should always take the application process very seriously when trying to get a loan. Payday loans are fairly easy to get for the average person, but you still want to make a point of filling out your applications thoroughly and honestly. Remember to double check your application after you have filled out all the required fields. This will confirm that everything is taken care of and that you are ready to submit the application. If you submit an application with inaccurate or missing information, you will most likely have to go through this process all over again.