We have this notion in mind that if we have a not so good credit score, then we will have a difficult time securing a loan. Today, the loans are becoming more attainable with the advent of online lenders and subprime lenders. Yes, you can now get a loan even if you have a bad credit, but to increase the chance of getting your loan approved, you should enhance the application aspects.
How to Qualify?
- You should be 18 years old and above.
- You should be able to present a proof of citizenship.
- You should be employed (at least six months).
- Bank account for easy transfer of funds.
How to Improve Your Credit Score?
If you are going to use the money wisely, then you can use it as a means of clearing your existing debt. If you got to pay off the existing debt, then you will be able to improve your credit score. However, the borrower should also be willing to compromise. If you have a low credit score, then you will be categorized as a risk borrower and because of that you will be given a high interest rate.
Therefore, you should first improve your credit score before you submit your application. There are many different ways to improve your credit score such as getting a small payday loan and that should be repaid quickly. If done the right way, then the credit score will slowly increase and so it would be easier for you to take out large personal loan.
Getting a Co-Signer
It would help a lot if you are going to improve your credit score, but to further improve your chance of securing a loan, you should consider getting a co-signer. This person will guarantee that you will be paying the monthly repayment and that he will pay in your behalf if you fail to repay the borrowed amount. If you have a co-signer, then the interest rate will be lowered, which makes the loan even more affordable for you.
Having a co-signer will give peace of mind to the lender and so the lender will most likely grant you the loan. However, you have to make sure that the co-signer you choose has an excellent credit record. He should have a reliable income indicating that he has the ability to repay the loan just in case you fail to keep up with your credit obligation.