If you have bad credit and desperately need a loan, then you are going to have to deal with lenders that are easy on people with low credit scores. Think banks, credit unions, payday lenders, etc…
Unfortunately, it is impossible to make a list of all loan providers because the list would have to change on a daily basis.
However, you can still find several small and big lenders throughout this website. Just browse around for your favorite credit companies.
Now, in order to increase your chances of success, please take a brief trip inside the mind of a typical lender.
The Mind of Bad Credit Lenders
- Credit lenders are more likely to flush $5,000 down the drain rather than $50,000. That means that you might need to assemble loans from a few such lenders if you are hoping for a five-figure cash infusion.
Many loan conmpanies will take small risks, but none will stick their neck out for a huge loan. If they did so consistently, they would soon be out of business. Don’t take that personally.
- Loan providers are on the hunt for people with good credit as cosigners, so if you have anyone willing to put his/her John Hancock on the line for you, even the stingiest of lenders will be much more amenable to working out a deal with you.
- Bad credit institutions understand that many people are in a financial fix these days. That makes some more likely to give you a loan, but others more likely to impose very harsh terms, because they know that there are enough people like you in line to accept sky-high interest rates and the like.
The good guys in that first group are now looking at your current income source and debt-income ratio as they make decisions. If you have a solid income and are trying to recover from some bad decisions in the past, many lenders will give you a loan despite your low score.
- Bad credit lenders are also much more pliable if you have some collateral to put up. If you own a house or car(s), your chances of gaining favor with a lender go up quite a bit. Lenders want to know that if some other crisis hits you and you can’t re-pay the loan on time (as you haven’t in the past), then they can at least seize something of value in the process. That’s just good business.
Don’t be embarrassed to interact with a loan companies. Go into the office or fill out the application on line with your head held high. On the other hand, don’t get too pushy or act too self-entitled. Now that you know a bit more about how a bad credit lender thinks, you can allay his/her fears and make a persuasive argument for the loan that you need.