5 Eye-Opening Tips to Get Loans Faster With Poor Credit Score
If you’ve lost your job or had your hours cut as a result of COVID-19, you’re not alone. And if you’re like half of all Americans, you didn’t have much of a financial net to begin with. Which means that you could be finding yourself struggling to make ends meet.
One way to get food on the table or pay your rent when the money runs out is with a personal loan. But if you have bad credit, getting approved can be a challenge.
If you need money now, keep reading to learn 5 eye-opening tips to get loans faster, even if your credit score is lacking.
1. Take a Closer Look at Your Credit Score
The first thing that you should do before you start shopping around for loans for bad credit is to take a closer at your credit score.
Understanding why it’s low and what you can do to raise it will help you begin that path towards better credit and could help you score a better loan.
First, you’ll need a copy of your credit score.
Getting a Free Copy of Your Credit Score
Anyone who tells you that you need to pay to view your credit score is lying to you. In fact, by law, the three big credit reporting companies, Equifax, Experian, and TransUnion, are required to provide you with a free report every 12 months.
If you’ve already used your free report, you may still be able to obtain a free look at your updated credit score. Check with your credit card providers to see if they provide a free look at your score. Many do so through their online portals or banking apps.
Checking Your Credit Report
Next, take a look at the breakdown of your score.
Missing a payment, having too high a debt-to-free-credit ration, and hard inquiries on your credit will all lower your score.
If you have these and other incidents on your score, make sure that they are accurate.
Credit card reporting companies are not perfect, and mistakes happen. For instance, if you notice a late payment on your report that you know you paid on time, you can report this.
Getting any mistakes fixed could raise your score and make it easier to get a loan. Unfortunately, correcting a mistake or otherwise working to raise your score does take time. If you need a loan fast, you’ll still need to search for a bad credit loan.
2. Prove that You Have a Source of Income
Once you’ve looked over your credit score, it’s time to prepare to actually get a loan with bad credit.
Loan providers use your credit score to judge how likely you are to pay back a debt. So if your credit score is low, you’ll need to prove your ability to pay in a different way.
One great way to do this is by proving that you have a source of income.
A source of income could come in several forms. Of course, the most obvious is income from a job.
You don’t necessarily need to be working full-time. Even a part-time job or seasonal work could be enough to help you get a loan with bad credit.
In most cases, you’ll need to prove that you have at least $1,000 a month in regular income in order to get a loan.
3. Set Up Direct Deposit
Besides having a source of income, you’re also going to need to be able to prove that the income is regular and reliable.
The best way to do this is by setting up a direct deposit.
A direct deposit shows that your income source comes every month and for the same amount every month.
Talk with your employer about setting up a direct deposit. While not all employers do this automatically, most have the capability of doing so.
Of course, you’ll need to have a checking account set up in order to receive your direct deposit.
4. To Get Loans Faster, Gather Your Personal Information First
If you need a loan fast, there are a few things that you can do to speed up the process. To start, it’s important to have all of your information ready to go.
You don’t want to be fumbling for things as you’re trying to apply for a loan. Some of the information you need to provide, like your proof of income, take time to obtain.
If you haven’t done so already, setting up direct deposit could take days or even a couple of weeks if you have to wait for a paycheck.
Getting these things ready before you get ready to actually apply will help you avoid a delay that could keep you from getting your money on time.
5. Consider Your Loan Options
If you don’t have a steady source of income or can’t set up a direct deposit, you may still be able to apply for a loan with poor credit.
Research your loan options. For instance, rather than a traditional loan, you might consider a car title loan or payday loan.
If you have income but can’t set up a direct deposit, a payday loan might be an alternative.
A payday loan gets you cash fast, by borrowing against your upcoming paycheck. Often, these loans are less than $500 in value.
Only consider this loan type if you know you’ll be able to pay on your next payday. Otherwise, you may face hefty fees if it takes you longer to pay back.
Another loan option is a car title loan.
If you have a car, you may be able to use the title as collateral. This means that if you are unable to pay back your loan, your car will be seized. But if you need cash, this could be a way to get it, no matter your credit score.
Getting a Loan With Bad Credit
By checking your credit score and fixing errors, you can raise your score, which may increase your chances of getting approved for a loan.
Having your info ready, researching your loan options, and setting up direct deposit will also help you get loans faster. That way you can pay your bills or keep food on the table when times are tough.
To apply for a loan with bad credit or learn more about your options, contact us today!