Many of us get a phone call for loans but getting a loan with bad credit is next to impossible in conventional ways. There are many reasons for what you need loans from banks or from any other financial organization. But before they approve a loan to anyone, they always consider the credit score of the person. Now if you have a good credit score, then it is easier to get a loan from anywhere. But if your credit score is not that good enough, then you have to face several problems.
What is a Credit Score?
Checking a credit score is according to Drancy.net a type of a soft inquiry which is generally done on the basis of your financial conditions. There are several aspects which are considered while checking the credit scores. Normally the banks look for your net income, dispensable income, your credit status, and some more things while your credit score is determined. In regular ways, a good credit score is considered while it is between 700 and 850. But if it is less than 600 then it is considered as poor credit rating.
Who Determines the Credit Scores?
There are several agencies who offer free credit rating checks through online sites. But sometimes these credit scores may not be effective. When you want to check your credit scores really then you should consider checking done by the banks and some genuine agencies. The banks have the most genuine credit checking tools with them and the ratings are undoubtedly acceptable. As banks are the most popular providers of personal loans, so they are the most trusted scorers. Other than the banks, there are Equifax, Experian, and FICO who are the universally accepted credit rating agencies.
Pre-Requisites of Bad Credit Loans
There are several occasions where you need to borrow money despite having a poor credit rating. But there are rays of hope for those who have poor credit ratings due to their past mistakes. You may have to pay a bit more rate of interest, but you can get loans through these sites. Your loan amount will not be very high and the tenure will range starting from 3 months to 36 months.
Apply for Getting a Loan with Bad Credit
There are several occasions when you can apply to get a loan with bad credit. If your loan applications are rejected time and again, then you can go for a bad credit loan. If you have not paid your previous loans on time and you are currently on different other loans, then your credit score fall. Now there are ways by which you can have a loan with bad credit. You need to check your eligibility so that you can ensure the lender that you will be able to pay it properly. You can also provide the lender with a collateral so that if you default by anyway, they can en-cash that to revive the money.
Some Agencies Provide Bad Credit Personal Loans
There are some agencies that provide personal loans to those who have bad credits. UPSTART is one such agency that provides personal loans on having a credit score of a minimum of 580. The borrower should have an annual income of at least $1000 per month. There should be no more than 45% of the debt of the income amount. OneMain is another agency to provide bad credit loans if the borrower has an average income of $ 49000 per year. It provides fast funding to the borrower and there is an option of co-signing or guarantee. They also provide free credit scores to the clients.