5 Types of Lenders

Peer-To-Peer Lending

These are perhaps one of the easiest types of loans for people with bad credit to get. You are dealing with a stranger so there is no need to be embarrassed by your situation.

You simply go to one of the many websites that offer peer-to-peer loans and wait for either an approval or denial. Each site is different and have various criteria for applying and approval. So make sure to read all the terms and conditions before applying.

Family And Friends

This makes the list because it is usually the fastest and most guaranteed way to get the cash you need. That is if you have always paid the people in your life back!

If you plan on asking for a large amount of money you best have a plan set to pay it back and be willing to explain this to whomever you ask. It is also important to get anything related to this personal loan in writing. That includes both of you signing a contract and keeping a copy of all check or money orders you have used to repay the loan. This will help prevent any further damage down the road.

 

 

5 Types of Lenders
Co-Signers

If you are unwilling to ask any friends for a direct loan you may consider asking them to co-sign on one for you. If you repay the loan on time this will help your credit score considerably.

However, it is important to understand that late payments and failure to pay will affect your co-signer as well. This includes negative remarks on their credit report as well as the lender coming to them to pay the loan in full. Always think of the consequences when applying for a loan in this matter.

Credit Unions

If you have had no luck with the local bank r lenders you may want to begin inquiring at your local credit union. These are typically designed to help area residents or those who belong to a certain profession. Credit unions are non-profit organizations that will allow you significant savings while improving your credit.

Home Equity

If you own a home you have the potential to get a home equity loan or line of credit. Regardless of the housing industry your home is always an asset.

This can work against you if you are unable to pay your loan on time. Your will be in jeopardy of losing your home and this can force you into deeper debt while trying to get another loan to pay off this one.

So always keep that in mind when you are putting your home on the line. Have a plan of payment ready and stick to it.

Getting loans for people with bad credit does not have to be a difficult chore. You just have to be willing to do a little bit of extra legwork. Remember once you get this loan do everything in your power to pay on time and get it repaid quickly so you can enjoy the benefits on your credit report.