Yes you can!
One of the most common loan questions asked today is “Can I get a loan even if I have bad credit?”. The good news is yes you can; the bad news is that you may not get a good rate!
The thing about bad credit is that it shows the lender you are unreliable. You have been lent money in the past and you have failed to repay it on time. That typically makes lenders think twice about lending you any money in the future. For that reason you will find it incredibly difficult to get a loan with bad credit. However, it isn’t impossible; you just have to know where to look.
Which Type of Loan is Better for Bad Credit?
If you do have bad credit then the type of loan that you should apply for is a secured loan. An unsecured loan gives no security to the lender. As you have bad credit, the lender will want some kind of assurance that you will give them the money back. This means that they will either charge a very high interest rate, or they will require some security for the loan. Therefore secured loans are typically the best choice.
The thing that you have to remember with secured loans is that they are usually secured on your home. If you miss a repayment or fall behind with them, you could potentially end up losing your home. Foreclosure is a big problem these days because people cannot afford to pay back their loans. Therefore you really do need to make sure that you can repay the loan monthly with no problems.
Getting Vehicle Finance with Bad Credit
If you are planning on getting a vehicle loan then you may also have problems getting one with bad credit. You can increase your chances of getting vehicle finance by putting as much of a down payment as possible. The more that you pay upfront, the lower your interest rate will be and the less you will have to borrow. If a lender sees that you do not want 100% of what the vehicle is worth then they are more likely to lend you the money.
Finally if you can get a co-signer to agree to help you then you are more likely to get the loan you require. The co signer has to have a great credit history and they will basically be agreeing to pay off the loan for you if you fail to pay. It basically gives the lender insurance in case you do miss a payment.
Overall the above are the best tips that you can use to get the finance that you need. Bad credit loans are few and far between but they are out there. Juts beware of high interest loans and always try to improve your credit rating before you apply.