If you have bad credit, getting a loan could be more difficult. However, there are still ways to get the funds that you need. In fact, a lot of lenders offer loans to individuals with low credit scores. Not only will you be able to find hardship loans for bad credit, but there are credit cards and other loans available. Here’s what you need to know about borrowing if you don’t have good credit:
1. Local Credit Unions May Offer Options
If you’re looking for a loan but don’t have a good credit score, a local credit union might be able to offer the financing you need. While the specific financing available from these financial institutions varies greatly, most local banks and credit unions offer multiple financing options. In some cases, the credit requirements of these institutions are somewhat more lenient than major banks and credit card companies.
2. Some Lenders Specialize in Bad Credit Loans
While you might be able to find something from a major lending institution, it’s also possible to get funding from companies that specialize in bad credit loans. Here are a few reputable options to consider:
3. Short-Term Loans May Be an Option
If you need to borrow money to cover a routine expense, short-term lending may be an option depending on your circumstances. However, it’s important to choose your lender carefully. Always make sure that your lender is licensed and insured. Otherwise, you could fall victim to predatory lending practices.
Luckily, it’s possible to find short-term financing for personal or business loans. these trusted financial institutions offer affordable short-term lending to borrowers with bad credit:
4. Consider a Hardship Loan
According to Lantern by SoFi, “A hardship loan is a personal loan that allows you to borrow money during a time of financial crisis.” You’ll need to meet certain requirements in order to get one, but interest rates tend to be considerably lower than most other types of financing. Here are a few other attractive features that these unique loans have to offer:
You’ll be able to access the funds quickly.
It’s often possible to get a deferment for these loans.
In many cases, they’re accessible to people with bad credit.
5. You Can Search For Loans Online
If you’re looking for a loan but don’t have good credit, you’ll be able to search for thousands of loans with Lantern from SoFi. However, there are many other places to search for financing online. Though, it’s typically best to avoid borrowing from a lender that exclusively offers loans over the internet.
While getting financing without a good credit score can be challenging, it certainly isn’t impossible. In fact, there are numerous lenders that might be willing to accept a borrower with a bad credit score.