People take out loans for all different kinds of reasons–perhaps you’re running your own business, or maybe you need to pay off a debt at a lower interest rate. The process of taking out a loan is pretty simple unless you have bad credit. You may want to work with credit repair companies to get your score back up and find a way to borrow the money you need.
In this article, we’ll discuss how to get small loans, even if your credit isn’t great, and credit repair programs that can help you get back on your feet.
Getting a Loan On Your Own
If you want to get a loan without professional assistance, you’ll need to build a reasonable amount of credit. Find out how long it takes to build business credit if you need a business rather than a personal loan. Once you get a loan you can afford and keep the payments current, your credit score will increase even more.
However, this may not be as easy as it sounds. You may need some help from outside resources.
Securing a Loan With Questionable Credit
Getting a loan with bad credit can be difficult–but not impossible. Here’s how it can be done:
Request a Credit Report
The first step to taking out a loan is to check your credit score. You may be surprised by how good it actually is. If it’s lower than you were expecting, you may be able to fix it with the help of a credit repair company.
Knowing your credit score tells you exactly how your financial situation is viewed by lenders and what kinds of loans you might be eligible for. You can get a free credit report from each of the three bureaus (Experian, Equifax, and TransUnion) every twelve months.
Evaluate Your Finances
Make sure the monthly payments for the loan you have in mind fit well within your budget. You don’t want to take out a loan you can’t afford to pay because this will damage your credit even more.
Compare Your Options
With bad credit, you probably won’t be eligible for the best rates and options. However, you might be surprised by what types of loans you can get despite your situation. Consider going through a community bank or credit union rather than a large bank, because smaller institutions may be more forgiving.
Get a Cosigner
If all else fails, consider getting a cosigner for your loans. A cosigner should have better credit than you, and they would be responsible for your loan if you fail to make the payments. Getting a cosigner could increase your chances of getting a loan despite having bad credit.
The Phenix Group Can Help
Getting a small loan with bad credit is a great way to start building your credit back up, assuming you can manage the payments. If you need help with credit repair, so you’ll be eligible for better loan terms, let The Phenix Group help. We provide individualized action plans to help you get your financial life back on track!