Tips to Get a Loan Approved When You Have a Bad Credit Score
Many people are asking if they can get a personal loan when they have a bad credit history. It may take a lot of time to repair the bad credit score. When you are in this situation, you need to understand that you have limited choices that are available. In most cases, government agencies and banks may deny your loan application when you have a poor credit score.
These lenders may not be the best choices for you who have a bad credit score. In this article, we are going to learn about some popular choices that are available in the Philippines. When you look around yourself, you can find some popular brad credit loans that are available today. These loans are suitable for you who have a bad credit score and people who don’t have credit at all.
Family members and friends
If you need to take an instant loan, you can contact your family or your friends. It will be easier for them to give you a loan when they know and also understand your financial situation. In most cases, they will never charge you with an expensive interest rate. However, your relationship with them will be the collateral. If you want to maintain their trust, you need to be active in repaying your loan on time.
In the Philippines, you can find some private lenders that are available today. They can offer many different types of loans, such as online loans, instant loans, cash loans, payday loans, etc. Many of these loans require minimum requirements. They are also available with quick approval. Even though you have a bad credit score, you are still able to take any loans from these private lenders. The approval procedure may take less than an hour. The only drawback is that they have a higher interest rate than the loan from regular banks or financial institutions.
If you have a bad credit history, you can take a loan in the Philippines by putting up an asset, for example, gadgets or jewelry as your collateral. You can take any pawn loans from your favorite pawnshops like this: digido.ph/articles/palawan-pawnshop. They can approve your loan without looking at your credit report. When you fail to repay your loan at the right time, the pawnshops can put your collateral or pawned items for sale. You will lose your ability to get back your items when you cannot pay back the loan.
Car collateral loan
Do you have a car? You can use your car as collateral for getting quick cash. This type of loan can be considered a secured loan. You only need to submit your car’s official receipt and also a certificate of registration. As long as you own the car, you don’t need to show your credit history. Some lenders don’t require you to surrender the cars when you want to take the loan. You only need to surrender the car’s certificate of registration, car title, and official receipt.
Benefits Taking any of those loans
These lending alternatives have a few advantages that are not available with a loan from a bank. Here are some of them.
a. Credit history is not required
This is the most important benefit that you need to know about those loans. Most of those loans don’t require you to submit a credit report. Even though you have a bad credit score or zero credit, you can simply borrow the money you need for any of your needs.
b. Quick approval time
Most lenders are going to give you instant approval for any loans you want to apply for. They don’t have strict requirements, so they can get back to you as soon as possible. You can get the money deposited in your account from about 1 - 24 hours. It will depend on how much money you are going to borrow from the lenders.
c. You can use the money for any purposes
Most of those loans mentioned above are specially created for personal use. You can use the money for any purpose, including for emergencies, debt consolidation, hospitalization, etc. You have a lot of flexibility with the money that you will get from this loan. However, you need to use the money wisely, so you will be able to repay the loan back on time without getting any problems.
Choose a loan option to your liking, but don't forget to know the interest rate and calculate the total amount to be repaid. Pay back your loans on time, because it will have a positive impact on your credit history.