If you already had been victim of financial crisis before in life and need to borrow money to get life back on track, the options are rather limited in nature. In case, you are suffering from bad credit, any bank will offer you with loan on behalf of quite higher interest rates. If the credit happens to be quite poor, you might not be held eligible for the traditional bank loan on the first place. But fortunate enough, there are various other options available in the market, which are open to you. Even though, some of them might carry a great deal of risk like putting up personal assets as collateral and more, still more and more people are running towards it.
Before you end up considering any of these options, you have to understand what led you towards this bad credit on the first place and whether the situation has been changed with you having greater capacity to pay the loan back. You do not have to take any extra step, which will further compromise the current credit and financial situation you have. If you want, you are always most welcome to get on with the free counseling by visiting some centers. Here, you will get to understand the options and then determine best way to move forward with it.
You can always log online at https://www.libertylending.com/ to learn more about the options and make way for just the right option in this regard.
Procuring loan from a family member or friend:
If you are actually in a dicey condition and have to get hold of some money to run a basic life, you can ask your family member or friend to be your guide for the day. For that, following some points is all that you need to focus at.
· Make sure to find someone to borrow money from:
In case, you have one family member or friend who is actually willing to loan some money, this might be the right option you need to care about. Make way for someone you know well and likely to help you loan money on certain flexible grounds or at a better rate.
· Agree to some terms:
It is really important to come up with an agreement with family member or friends on how much they are comfortable to loan you with and their repayment expectations, which will include some possible interests as well. To be sure that the relationship is not harmed by transaction, remember to be honest and open with credit about circumstances and when you are able to pay them their money back. Allot a time and do remember to follow it.
Get the agreements in writing:
It is always a clever idea to put on the agreement in writing. This is to just avoid any form of conflict in future regarding the agreements once made. Sometimes, the lender might ask you to sign up one promissory note and might just want to get it notarized to just bolster the legal standing. You have to treat the loan terms in such a manner, making it as serious as you might make with a bank loan.
· Remember to ask about cosigning:
In case, you are making plans to borrow a larger amount than any of the family member or friends has on their hand right now or willing to loan you with, remember to ask them to cosign on bank loan. If the person you have asked to cosign on the paper has better credit than what you have at present, you might end up with better rate than what would have if they signed it on their own.
Remember that if you ever fail to make payments of loan on time, the family member or the friend’s credit score will be impacted in a negative manner and in a severe way. Avoid taking out loan with anyone else’s name with permission. You can do so unless you are 100% sure of paying it back on time. The specified rate in such case is subject to vary, depending on the credit score of the family member or friend . If you want, you can always consult an online loan based repayment calculator for determining the repayment schedule and payments.
Getting loan from the credit union:
In this case, you have to first find one localized credit union. These credit unions are no doubt small and noted to be the local banks as owned by members and not quite by the shareholders.
· Mainly because of this business model, the credit unions are likely to have lower fees and a different form of customer service model. It helps in evaluating the loan applications, depending on more than just your present credit score.
· In case, the score seems to be towards the poor side, then the rate will be still high. However, it won’t be that high like what you actually get in a large bank.
Remember to open an account:
As these credit unions are mostly owned by members, you might have to become one and be noted to be an eligible one for the loan. Opening one account under credit union is quite as same as opening account at any possible bank. If you want, you can always bring in some cash and identification. There will be a banker out there to help you set up that savings or checking account.
Time to apply for loan:
Always be sure to have a chat with the banker at credit union about eligibility for loan and cover the necessary paperwork. Mainly because of its personal approach, the banker will consider the individual circumstances while applying for loan. Even when a large bank has denied the application a credit union might. Moreover, you should not expect to get loan under same terms and conditions as when the credit might have been good.
Be sure to check out these options and procuring money even when you have a bad credit score for your financial growth won’t be that tough of a deal.