Image sourceA bad credit score has always been a culprit in many denied loan applications. It may seem like all your options are gone. You may feel you will never be able to improve your financial situation.
Fortunately, there are several loans available for people with bad credit scores. You just have to know where to look and how to apply. If you have a bad credit score, here are five loans you can get:
Personal Loan
Living in one of the cities in Colorado with a high cost of living, such as Vail, Denver, Aspen, and Aurora, can be difficult on your wallet. One way to ease the financial burden is by taking out a personal loan. It has three different types and terms, which can be flexible to meet your needs.
The type of loan you choose will depend on your credit score and financial situation. You can either apply for installment Denver personal loans, unsecured Aurora personal loans, or fixed-rate Aspen personal loans. If you don’t know which one is right for you, here’s a guide to help you out:
Secured Loan
You put up some of your assets as collateral when you take out a secured loan. It means if you fail to make the payments, the lender can seize your assets to pay the debt. The good news is that you can get a lower interest rate since the lender has less risk.
Unsecured Loan
If you don’t have any assets to offer as collateral, you can still get a loan. It’s called an unsecured loan, and it doesn’t require any collateral. The downside is that the interest rates are usually higher because the lender takes on more risk.
Variable-rate Loan
A variable-rate loan is one where the interest rate can fluctuate. It’s tied to an index, such as the prime rate, and goes up or down with that index. If the prime rate goes up, so does your interest rate. The benefit of a variable-rate loan is that it often starts with a lower interest rate than a fixed-rate loan.
Fixed-Rate Loan
The interest rate stays the same throughout the loan term in this type of loan. That means your monthly payments will be the same, too. These loans are good for people who want predictability and stability in their monthly budget.
Payday Loan
A payday loan can be a good option when you need money fast and have a poor credit score. It’s a short-term loan that’s typically due on your next payday. It’s easy to qualify for, and you can get the money in as little as 24 hours.
You can use the money for anything – from everyday expenses to emergencies. Just make sure you can repay the loan on time, as the interest rates can be high. So make sure you only borrow what you need and can afford to pay back.
Debt Consolidation Loan
You can get all your loans under one roof with a debt consolidation loan. It’s a type of loan that consolidates your debts into one monthly payment. You only have one bill to pay, so it helps you stay on top of your finances.
Not only that, but a debt consolidation loan can also help you save money. How? By getting a lower interest rate. It can help you pay off your debt faster. So if you’re struggling with debt, a debt consolidation loan may be the answer.
Installment Loan
It’s a loan that you repay over time with fixed monthly payments. They’re often used to finance big-ticket items, but you can also use them for smaller purchases, such as furniture or appliances.
Taking out an installment loan can help you build your credit score. That’s because each on-time payment gets reported to the credit bureaus. So if you’re looking to improve your credit score, an installment loan may be a good option.
Business Loan
A business loan can be a great option for small business owners to get the funding they need. Some worry that they won’t be able to qualify because of their credit score. However, several business loans are flexible in terms of credit scores.
For example, one option is an SBA loan – it’s backed by the Small Business Administration. They have several programs that can help small businesses get their funding. Another option is a business line of credit that gives you access to funds when you need them.
Final Thoughts
There are several loans available for people with bad credit. So if you’re worried about your credit score, don’t be. There’s a loan out there for everyone. All you need to do is find the one that best suits your needs. Don’t be afraid to shop around and compare rates. After all, it’s your money, and you deserve the best deal!
