How to Get a Loan with Bad Credit: Two Possibilities

How to Get a Loan With Bad Credit:

Getting a loan with bad credit can be an arduous process if you do not know where to begin. However, with a few simple steps and tips it is possible for you to get a sizable loan that will help keep your finances in check until the next pay day. The two best ways to get a loan with bad credit is to have someone co-sign a loan for you, or to get a pay day loan.

How to Get a Loan with Bad Credit -> Get a Co-Signer

Getting a co-signer for a loan can be complicated, especially if you do not have a good credit history. When you are thinking about how to get a loan with bad credit, it may be worth asking a family member or a close friend to help you with your situation. If someone with a high credit rating and solid job can co-sign your loan, you should be approved by most banks. Keep in mind that if you are unable to pay this loan in the set terms and time limit, the person co-signing your loan will be just as liable as you are.

How to Get a Loan with Bad Credit -> Payday Loans

Payday loans are the best way to get a quick loan even if you do not have a solid credit score. Most payday lenders do not even ask you for your social security number, which means that they will not be running a credit check. They will ask for your driver’s license, employment information, and a proof of direct debit to ensure that you are getting a monthly or bi-monthly wage. Once they have established a proof of employment and income, they will authorize a loan that is between $300 to $1000, and must be paid back within two to four weeks.

Your first payday loan is likely to be between $300 to $500, after which you can get larger loans as long as you have a history of paying back on time. Payday loans do carry a substantial interest rate, which translates to $30 to $100 on top of the amount you take out, depending on the interest rate and your borrowed amount. For example, a $400 pay day loan will mean that you have to pay back around $440 or $450 in 2-4 weeks.

Neither of these options are as enticing as getting a loan from a bank on your own terms, but with a bad credit rating you will have to improvise.