Ways To Help You Get A Loan With Bad Credit
Sometimes, payday doesn’t stretch far enough because there is so much to pay for and not enough money.
When that happens, you need help to make sure you make it until the end of the month when the bank balance gets replenished. Most people opt for a loan, but you can’t as you have bad credit and banks won’t lend to those with bad credit.
So, what are your next steps? You can’t just say ‘oh well’ and move on because you are in financial trouble and you cannot live without money, so what do you do?
Home Equity Loan
The housing bubble may have left you with a house that is beyond your financial capabilities. In simple terms, you owe more than you can afford because of rising house prices.
However, this could be a good thing if you can avoid the pitfalls of home equity. For example, if you have a house worth £100,000 and you owe £50,000, you have £50,000 in home equity that you can spend as you like.
The downside is that you have to keep up with the repayments. Otherwise, you could lose your home.
Talk To A Credit Union
What is a credit union? A credit union is very much like a bank, apart from the fact that they help people with financial difficulties. Instead of turning you away, they will seek to help you in whatever way they can.
Credit unions also have more favourable terms that make lending much easier. For example, they have lower interest rates and much friendlier repayment policies.
Still, that doesn’t mean you cannot fall behind with the repayments, but it does mean you won’t be under as much pressure. It is important to note they don’t lend large amounts, so everyone with huge debts will need to look elsewhere.
Bad Credit Specialists
As luck would have it, there are bad credit specialists who specifically lend to people with money problems. Yes, there are some that are scams and who prey on the vulnerable.
However, there are some great companies like 1st UK Mortgages. They offer a range of services to cater to most needs, such as their 1st adverse credit remortgages scheme.
Companies in the mould of 1st make a remortgage possible, which frees up funds to help you out of a tight spot.
Peer To Peer Lending
Organisations have rules and regulations that they need to follow. Individuals, on the other hand, do not follow the same rules. Some of you may know this as lending from a ‘loan shark’, but it is not when it is done properly.
Just like there are bad credit specialists, there is peer to peer lending specialists who are trustworthy and legitimate.
Family And Friends
The final option is to ask a member of your family or one of your friends to help you out of your hole. If they have the money they will be more than happy to help, plus you won’t have to incur interest.
Still, you want to be careful because lending money can ruin a relationship.