Unable To Get Any Loans
With the anemic economy and higher unemployment rates, money is tight around most households. As a result, people will fall back to credit and continue to build up debt. They use their credit cards or take out a low interest personal loan in order to consolidate some of that debt. Low interest personal loans would be a great option to save some interest and money in the process, if you qualified.
Of course, low interest personal loans are not always an option even if it is easy to sign up online. If your credit is not so great, the odds of qualifying for such a loan are slim. As such, if a person with a low credit score finds him or herself in a financial bind, things will be a bit tougher. That is not to say that they do not have any options.
Companies Offering High Risk Loans
There are several banks and money lenders that boast about how you can still get money even if you have poor credit. If it sounds too good to be true, that’s because it is. While the standards for loans like this may be low, the risk is usually high. These high risk loans may come with a high interest rate or payment terms that may prove problematic for the lender. So, what is a person to do?
- Well, you could ask your parents. Depending on your age, it could be seen as a sign of desperation, but desperate times do call for desperate measures. Of course, they may not be in a financial situation to throw money around.
- Another rarely talked about option is to borrow some money from a friend. Of course, loans from friends can prove problematic. There is no interest and the terms of repayment are more lax than a bank, which is great, but it can also cause rifts in friendships.
- If you are going to borrow from friends you will want to make sure to be clear about how long it will take you to repay the debt. You will also want to be sure and not go on a spending spree after taking the loan as it does not look good from the friend’s perspective.
The options for a person with a bad credit score may seem slim, but the options are still out there. They may not be ideal, but they can still get the job done. If you are in need of cash, but cannot qualify for a loan, it may be worthwhile to look into some of the other options out there. In this economy, any extra cash can help out if used properly.
Disclaimer: We are an informational site that receives compensation from companies of products we endorse. We are independently owned and the opinions expressed here are our own.