Since the financial crash that started in September 2008, low credit score loans are now more difficult than ever to get.
Lenders, who raised their credit score requirements to at least 720 for regular loans, are now even pickier about low credit scorers they lend money to.
Finding a lender who will agree to give you a bad credit loan, however, isn't impossible if you know where to look.
If you've got at least 20% home equity on your house, consider applying for a home equity line of credit.
With bad credit, you'll probably get an interest rate and other charges that are higher than regular loans, but if you need the money badly that's better than nothing at all.
If the amount you need isn't big, you can apply for a personal loan.
If you decide to go this direction, make sure you read all the loan documents and fine print very carefully.
You need to see exactly what fees you will be charged, and how much.
Usually, these will be detailed on the loan document's terms and conditions.
Know what you're paying for because if you don't, you might just be spending hundreds of dollars just for the privilege of being granted the loan, or a myriad of hidden fees that the lender won't tell you about.
If you have an existing FHA loan, you can apply for a streamline refinance.
Your loan must be current, with no delinquencies in payment for the last year, and you must have ownership of the property for at least six months.
A streamline refinance can be done in several ways.
You can get a "no cost" refinance with no out-of-pocket expenses, but this means a higher interest rate on your new loan and paying the closing costs in cash.
Alternatively, closing costs can be included in your new loan but there must be enough equity in your property to cover these costs.
Another option is a streamline refinance without an appraisal, which requires that the new loan amount should not exceed the original loan amount.
A debt consolidation loan allows you to consolidate all your bills into one monthly payment.
In certain cases, monthly payments can be reduced by 50% or more, which will allow you to pay off your debts in half the time.
Secured loans, such as secured credit cards, are another option for a bad credit score loan.
You'll have to put a deposit of a certain amount against the card, which you won't be able to touch.
The amount will depend on your credit limit.
Secured credit cards are useful if you have bad or no credit history.
By always making your payments on time and being careful not to miss out on a single payment, chances are the lender will, after some time, offer you a guaranteed unsecured card.
One of the best ways to get a bad credit score loan is to talk to the lender face-to-face, so that you'll have a chance to convince him/her of your earnestness in paying off your debts.
Check out our website for advice on cautionary measures for low credit score loans and ways you can rebuild your credit score without having to go for credit counseling.
Lenders, who raised their credit score requirements to at least 720 for regular loans, are now even pickier about low credit scorers they lend money to.
Finding a lender who will agree to give you a bad credit loan, however, isn't impossible if you know where to look.
If you've got at least 20% home equity on your house, consider applying for a home equity line of credit.
With bad credit, you'll probably get an interest rate and other charges that are higher than regular loans, but if you need the money badly that's better than nothing at all.
If the amount you need isn't big, you can apply for a personal loan.
If you decide to go this direction, make sure you read all the loan documents and fine print very carefully.
You need to see exactly what fees you will be charged, and how much.
Usually, these will be detailed on the loan document's terms and conditions.
Know what you're paying for because if you don't, you might just be spending hundreds of dollars just for the privilege of being granted the loan, or a myriad of hidden fees that the lender won't tell you about.
If you have an existing FHA loan, you can apply for a streamline refinance.
Your loan must be current, with no delinquencies in payment for the last year, and you must have ownership of the property for at least six months.
A streamline refinance can be done in several ways.
You can get a "no cost" refinance with no out-of-pocket expenses, but this means a higher interest rate on your new loan and paying the closing costs in cash.
Alternatively, closing costs can be included in your new loan but there must be enough equity in your property to cover these costs.
Another option is a streamline refinance without an appraisal, which requires that the new loan amount should not exceed the original loan amount.
A debt consolidation loan allows you to consolidate all your bills into one monthly payment.
In certain cases, monthly payments can be reduced by 50% or more, which will allow you to pay off your debts in half the time.
Secured loans, such as secured credit cards, are another option for a bad credit score loan.
You'll have to put a deposit of a certain amount against the card, which you won't be able to touch.
The amount will depend on your credit limit.
Secured credit cards are useful if you have bad or no credit history.
By always making your payments on time and being careful not to miss out on a single payment, chances are the lender will, after some time, offer you a guaranteed unsecured card.
One of the best ways to get a bad credit score loan is to talk to the lender face-to-face, so that you'll have a chance to convince him/her of your earnestness in paying off your debts.
Check out our website for advice on cautionary measures for low credit score loans and ways you can rebuild your credit score without having to go for credit counseling.
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