A bad credit score can stop you getting financial help from any financial institution such as banks as they all check your credit score to find the capability of borrower to repay. Many lenders don’t consider anything if you have a bad credit score and will not lend to you if you have credit score a specified number. Fortunately, there are strategies to help you get financial help even when you are suffering with bad credit.
Some ways to get financial help with bad credit are:
Boost your down payment:
Most loans need 20 per cent down payment of the loan amount. Try to provide a larger down payment; as this will show your seriousness to the lender.
Opt for short term loans:
Look for the different short term loans like payday loans which can provide you small amounts of cash until your next payday. You can easily get these loans if you are a permanent employee or have a permanent income source without any credit check and collateral involvement. These are fast loans which can provide you immediate financial help within 48 hours. After approval of the loan, the amount will be directly credited in your bank account.
Convince lender with a valid reason:
If you have a black mark on your credit report because of the some reason like unexpected medical crisis, you can explain that in your credit file. It might be possible that some lenders take it into consideration while measuring your capability of repayment and loan risk.
You can request someone from your family or a friend with good credit to co-sign a loan application. Makes sure that you repay the loan as if you fail to repay your cosigner have to pay off your loan amount.
Providing collateral as the security against the loan amount boosts your chances of getting loan as it reduces the risk for the lender. If you fail to repay the loan amount within the maturity period, the lender has the right to possess your collateral and sell it to get back the loan amount. The value of the asset provided as collateral has to be equal or more than the loan amount.
Conclusion: the bad credit score stops you from getting any traditional loan or refinancing an existing loan. However, some lenders consider your financial situation and predict your repayment ability and lending risk; for which they may charge you a high rate of interest. Moreover, for great advice on IVA visit the experts at www.debtfreedirect.co.uk, wherein seasoned professionals who have plenty of experience in the industry are sure to the have the right advice for you.