When you’ve got bad credit, it can seem like the whole world is against you. You hop from lender to lender, asking for what seems like a reasonable amount, only to have them shoot you down. Even though you have explained your situation clearly, they don’t seem to care – your credit is low, so you’re a risk. End of story. When you’re in a situation like this, trying to get a $4,000 bad credit loan can be downright infuriating.
To make matters worse, you may not have a great deal of time to get the money you need. If you’re facing foreclosure or having your car repossessed, time is of the essence. Even something as simple as taking advantage of a timed deal on a vacation package calls for swift action. You can’t afford to stay on the phone for hours with dozens of lenders, only to be told no repeatedly.
With so much riding on this loan, what can you do to cut through all of the misleading ads and shady lenders to find a lender that will work with you?
This post will highlight four ways that you can greatly increase your likelihood of being approved for a loan and get the money you need right now.
Use a Credit Union Instead of a Lender
Unlike most lenders, credit unions won’t evaluate you based on your credit score alone. Credit unions will also examine the area you live in, your place of employment, and possibly even your alma mater to see what terms they’ll extend to you. This means that credit unions will take a more well-rounded approach when evaluating you as an applicant.
Credit unions can also be very easy to work with, especially if you’re seeking a loan at $5,000 and under. These are small amounts for credit unions and so are fairly easy to get.
Now, here’s the catch with credit unions: in order for them to work with you at all, you have to be a member of the union. Every union has different requirements for who they’ll grant membership to, based on some of the factors listed above.
Unlike banks and lenders, who will try to sway you to work with them, credit unions put the responsibility on you to sway them into letting you join. Plus, there’s no way of knowing how long it will take for your membership to be approved, even if you’re successful.
If you’re wanting to move fast and saying, “I need a 4,000 dollar loan now,” then a credit union may be too slow an option for you to depend on.
Bring in a Cosigner
If your own credit score isn’t enough to qualify when you need a $4,000 bad credit loan, then you can consider using someone else’s.
A cosigner is a person who assumes the responsibility to ensure that a loan is repaid in the event that you can’t. When you’re going through the application process, the lender will factor the co signer’s credit score and income to determine the final conditions. This can result in a better interest rate, loan limit, and loan duration than you could get on your own. If you ever decide to seek a loan for larger amounts, such as $25,000 or above, a cosigner may become essential.
Obviously, the main drawback in having a cosigner is that you’re putting someone else in the position to assume your debts, and your debt could still ultimately land on you. If you default on your loan, the lender will turn to your cosigner. If they fail to pay the debt, it could come back to you. Otherwise, you may both end up in court. Before you commit to a cosigner, make sure they are someone that you trust and can rely on to have your back if you have an emergency come up during your loan’s life cycle.
Take Out a Secured Loan
Secured loans are offered to people on the condition that the lender can seize something of value, also called collateral, in the event that the borrower defaults on the loan. While a secured loan can help you get approval for a loan you wouldn’t otherwise receive, the risks are obvious.
In order to qualify as collateral, you’re going to have to promise something worth at least the total value of the loan, including not only the principal but the interest as well. For a loan of $4,000, and especially a higher amount like $5,000, you’ll have to contribute something worth a lot of money. In the majority of cases, the only items that qualify for most borrowers are items like their car or home.
While the benefits are great, even missing a single payment can result in your assets being seized by the lender. This will leave you not only without basic living essentials, but fewer assets to use as collateral in the event that you need another loan. Think very long and carefully before you even consider using a secured loan – in most cases, the risks far outway the benefits.
Compare Unsecured Personal Lenders
This is by far the best option for getting the $4,000 loan with bad credit you’re seeking. An unsecured loan will prevent you from losing your most prized possessions, avoid having to find a reliable cosigner, and not have to wait on a membership approval from a credit union. The challenge is in finding a lender willing to work with you because of your poor credit score.
In order to do the job right, it can take days or even weeks of research to find lenders willing to work with bad credit scores. You would have to compile their interest rates, loan limits, and repayment times, and compare them. By the time you’re finished, you may be reaching your deadline for finding a loan with nothing to show for it.
Loans Now can help. We specialize in providing great unsecured personal loan options to people with credit scores as low as 450. Using our pre-established network of reputable lending partners, we can present you with several different options to get the $4,000 you’re desperately seeking, at no cost to you, in a short period of time.
It’s as easy as providing some basic information, specifying how much you want to borrow, and providing us with your current credit score. We don’t check your score – we give you the resources to do so yourself, for free.
Once that’s done, our team of loan experts will compile the options that suit your needs, and counsel you about which option we think will work best. We don’t lend any money ourselves, so the focus is entirely on you and what you want to achieve. You can walk away at any time if we don’t provide you with an option that you love.
Don’t risk losing out on the $4,000 you need to make a difference in your life because of poor credit. Contact Loans Now, and let us start helping you get your money right now!