Well, whether you like it or not, having a good credit score has become one of the most financial perquisites in the lending industry. So, if you are knocking the doors of the high-street banks or any traditional lenders to borrow, then make sure that your credit is par to the standards set by them or else the probability of rejection will be significantly higher.
There is no denying the fact that having a good credit paves the way for several financial products, but this doesn’t mean that bad credit holders don’t stand a chance. There are options available for the people with bad credit rating to arrange funds too. Yes, you heard it right! Here, in this blog, we have prepared a list of funding options that are available for the bad credit rating people as well. So, let us see them one by one.
OPTION 1:- Bad credit loans
Getting a loan is not easy when you have a bad credit rating, but fortunately, there are lenders in the market who can arrange funds for you even your credit score is not up to the par. As these loans are specifically designed for borrowers whose are facing financial downsides by any means, so it is even possible to get loans for bad credit with no guarantor and no fees requirement and that too at instant decision. So, this will save a lot of time as you won’t have to find a guarantor who can support you in getting the fund from the lender.
OPTION 2:- Borrow from families and friends
If you are in an urgent need of financial need and you are unable to get funds because of your poor credit rating, then you can seek help from your families and friends. Knowing your financial conditions, they will surely help you to get out of the situation that you are stuck. One big benefit from borrowing from your closed ones is that you will be not under any pressure of paying on a specific date. Not only this, you will only have to repay the exact amount that you asked for not a penny more than that unlike any traditional financial institute where you will have to pay the interest as well. However, if you don’t want to sour the relationship that you have with them, then it’s better to go with other financial options where you will have to take funds from an authorized person.
OPTION 3:- Installment Loans Can Be Really Helpful
Another great option that you can choose is installment loans which can be very helpful when you are dealing with financial constraints. In this type of loan, you will get the loan that can range from £500 to £5000 and can choose the repayment period from 12 months to 60 months according to your need. But, the amount can vary from lender to lender according to their lending policy. One great thing about this loan is that you will have enough time to return the amount so you won’t have to do make any sacrifice or change your budget. There is a good chance that you can get Installment loans for bad credit from direct lenders who might see other financial factors to analyse your repayment potential.
OPTION 4:- Payday Loans: The light in the dark tunnel
If you are really on the verge of financial collapse and are unable to find any source to collect funds, then you could go for payday loans where you can get easily without any credit check. So, this funding option is ideal for people with bad credit score who is facing difficulties in getting other forms of loans. As payday loans are short term funding, so its application process is quite simple and easy and it is mostly provided by direct lenders who can transfer the amount within minutes of the approval. You will get the fund immediately which you will have to return on your next payday, but you can even repay the loan earlier than the given period if you are somehow back on the financial track. Another great benefit of payday loans is that you won’t have to justify the lender for what you are lending the money. The only thing he will be worried about will be the repayment of the loan on time.
So, these were the options available to get funds if you have a bad credit score. You can go with anyone of them which you are comfortable with, but make sure to do good research before choosing any one.
