Need a loan but have bad credit? While you may have fewer options available to you and possibly higher interest rates, you can still get a loan with a low credit score. Here’s how:
1. Try a Collateral Loan
If you have bad credit, a collateral loan can be an option. With collateral loans, also called secured loans, the loan is guaranteed by something you own, whether it be your home, your car, or your savings account. If you fail to pay your loan, the lender has the right to claim your collateral. Home equity lines of credit and cash-secured loans are examples of collateral loans. Just make sure you make your monthly payments on time.
2. Have a Cosigner
If you can’t get approved for a loan on your own, a co-signer with good credit can help. A co-signer is someone who gives your lender confidence that the loan will be paid. However, if you don’t make your monthly payments on time, both you and your co-signer’s credit scores will be impacted.
3. Borrow Less
Reducing the amount of money you’re applying for may increase your chances of getting approved for the loan since it is less risky than a large lump sum.
4. Visit a Local Credit Union
Many credit unions offer affordable loans to people who are working on improving their credit. In fact, People’s Community Federal Credit Union in Clark County WA offers members the same rate regardless of credit score. We keep our terms simple and easy to understand with no unexpected surprises.
Whether you’re buying your first home or a new car, we can help you make it happen.
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Can I Get a Loan With a Low Credit Score / Bad Credit? in Vancouver WA
Serving Greater Vancouver WA