August 8, 2019
Ever try training a puppy? Well, even if you haven’t you can sort of picture the process. A lot of patience, lack of maybe initial knowledge and tons of frustration. This might be an odd comparison, but raising a young pup is actually quite similar to getting loans for bad credit. It takes time, positive plans of action and a wealth of knowledge in order to start your journey. However, the payout (some pun intended!), is well worth the means! Let’s take a brief look at ways of getting loans for bad credit.
The Basics of Credit
Your credit score is represented by a number. Typically it starts at a range of 330 and moves up to as high as 850. For example, let’s say a test score in middle school, the higher the number the better! Unlike a finite number, thankfully you can improve your bad credit through many different methods.
When boiled down, all this number provides is the level of certainty that an individual would be able to pay back a loan. That debt could range from leasing a car, buying a home, or simply just a personal loan.
A higher number means that lenders think you are more likely to pay back a loan, while a lower number means you are less likely to do so. Now, this number might not be indicative of your spending habits. However, in our society, it is the determining factor. Not fair you say? I agree! So, how do we get loans for bad credit?
Ways to Rebuild Bad Credit for Loans
Believe it or not, an action item that does help build credit is…opening new lines of credit such as a credit card! Now it’s not to say you should be too cavalier with your spending, but being responsible with multiple credit cards proves to a reporting agency that you are to be trusted. Paying off current debts such as loans also helps improve your score. Even if you just pay off a little each month, the progress will go a long way in the future of building credit.
How about good ol’ patience? Yep! It’s a virtue and a reality when it comes to helping your bad credit score. The longer you have lines of credit open the better it will be when it comes to combating bad credit. The goal is to be responsible and aware of your spending habits while you take on this journey of improving your score.
Loans for Bad Credit Borrowers
There are many cards that are designed for those with bad credit. Some are able to get you approved on an easier basis and allow you to start building up the score by mindful spending and repayment. Many banks will offer these as an option for rebuilding credit while also giving you money for everyday spending.
Applying for a personal quick loan is an option as well. Your reasons can vary in terms of what you need it for ranging from debt consolidation, a medical emergency or financing a home or a car. These loans can range from $1,000 to $100,000 but pay close attention for various fees as well as interest rates that can be astronomical.
Another option is to borrow what is known as a “Credit-Builder Loan”. These loans exist for the sake of improving your score but also could be used for current expenses. Keep in mind there are typically monthly interest rates that last a while, so be aware of the details before you get into the paperwork.
Brigit is a financial wellness app that helps you view your financial history and keep you in check for when you need money now. One of its best benefits, along with the financial tools it provides to help you understand your financial picture, is the ability to get up to $250 instantly without any credit checks or interest fees!