Many of us had their share of sufferings as a result of the shrinking economy, delayed reformations after the big financial crisis which blighted the global markets in 2008, and fluctuating stocks and oil prices.
Incomes have been severely hit, many people were sacked from their jobs as a result of companies downsizing, besides that many banks and creditors are getting more cautious upon handing any loan due to the rising potential for default and delinquencies.
It became harder to get a loan. Banks and financing institutions look carefully through candidates’ payment histories and credit scores in order to make sure of their eligibility.
Getting a loan is a bit harder for those having bad score. It could be capped to lessen its risk on loan provider, it could also be provided with high interest rates, which means paying more money and heavier burden to handle.
However, this is not the end of it. If you are asking where to get a deal and looking for institution or bank that can accept your low credit score, there is absolutely a solution.
Options to help
There are various number of options available for those looking for a secure a deal with bad score.
- Check with a co-signer
Look for someone with good score to co-sign your agreement either a coworker, friend, or even a family member. This person has to believe in your abilities of repaying the borrowed money and knows your real financial situation.
You should know that if you couldn’t meet your payment dates the creditor will look for the co-sign for the full payment, this means your co-signer will have to bail you out, which is a totally embarrassing thing to happen for you.
OK, so what if your co-signer couldn’t payback as well, the devastating payment history on both of your reports restricting your ability in getting a new loans in the future.
- Peer to peer
You could look for a peer to peer offer which is a new financial assistance program that has been around since 2005. It’s an online portal which links those aiming to get a loan with bad report directly with other individual creditors.
This kind of lending services are beneficial for both sides, it’s a sort of money investment for creditors and a solution for a deal with bad credit.
- Credit Unions
Another solution emerging nowadays is unions. These unions are non-profit financial cooperatives, in other words, it’s a financial institution providing loans and owned by its members.
Unions are like banks in some issues like paying customers interest rates on loans, however, it has lower rates, besides that unions put the earnings back into the loop rather than dispersing them on shareholders and management board members.