A recent report shows that a startling 30% of Americans have poor credit, and some even don’t have credit at all.
Let’s face it: In life, one frustrating certainty is that no matter how well you plan, things will inevitably go off course at some point. Emergencies arise that can deplete even your emergency funds, making it necessary to find funding elsewhere.
Though this can be a challenge with bad credit, it may not be an impossible task.
With that being said, here are some tips to help you get the 500 dollar loan you need.
Borrow from Family or Friends
Getting a loan from a family member or friend is one of the easiest ways to get $500 loan approval because they won’t put you through the hefty credit check process.
Moreover, you may get reduced interest rates compared to the ones offered by bad credit loan lending institutions.
If you choose this option, however, make sure to come up with a written contract fully outlining the loan terms, interest rate, and what happens if you default.
By doing this, you’ll prevent damaging your relationship with your relative or friend in case you fail to repay the loan as agreed.
Personal Installment Lenders
What if I need 500 dollars today? Building your credit sounds may not be the best option when you’re in such a situation.
One place to get a bad credit loan is with personal installment lenders. Most installment lenders not only look at your credit score when evaluating your eligibility for a loan but also other several factors.
This makes it a perfect way for borrowers with bad credit to acquire a loan. Installment lenders are also known to having better interest rates and flexible repayment methods.
Lenders allow you to select the size of installment loan that best suits you.
You then set the number of months you’d like to spread the payments, which determines the monthly payment amount.
The funds are then deposited to your account a few minutes after processing your application.
Choose a Secured Loan
Secured loans are a perfect way for borrowers with bad credit to apply and get quick approval for a loan.
With a secured loan, a borrower provides an asset they own to the lender as collateral.
This increases the chances for loan approval because the lender can sell the asset to cover the losses incurred in case the borrower defaults payment.
Join a Credit Union
A Credit union is another great option for borrowers with bad credit. Unlike banks, credit unions have less-strict qualification requirements, and they don’t evaluate your eligibility solely on your credit score.
Some will approve your loan based on factors such as where you reside, your place of work, where you schooled or even your financial health.
Almost every borrower is eligible for a credit union loan; however, they’ll first have to be members.
As a member, you’ll get more favorable loan rates and repayment terms despite your bad credit score. Try to find for credit unions near you online or if you’re lucky enough join one affiliated with your employer.
Get a Co-Signer
Another viable option to get a 500$ loan with bad credit is by getting a co-signer. Approach someone you know has a good credit score and convince them about co-signing for your bad credit loan.
Lenders will set the terms of the loan based on the credit rating of your co-signer, who will also be equally accountable for loan repayment.
Ensure that you make timely payments as all payment details are recorded on both of your credit reports. Not to mention, making timely payments would improve your rating and enable you to get loans without a co-signer.
Online Lenders
Online lenders offer borrowing opportunities for people with a poor credit score. Most online lenders have less-strict loan-qualification requirements because they offer high-interests on loans.
They mostly don’t focus on your credit scores but other factors such as your bank account or employment history.
They usually operate online and offer short term bad credit loans.
The great thing about them is how fast they process loans and deposit funds to the borrower’s account within a few hours. Not to forget, most of them don’t require an application fee.
If you’re wondering how to get 500 dollars fast, check out CaptainCash online loans.
Improve Your Credit
Lastly, if online lenders and other financial institutions deny you a $500 loan, you may choose to build your credit for future loan requests.
You can do this by clearing your debts, timely payment of monthly bills, and developing a positive payment history.
Make sure that you know your credit score by checking online or even request your bank to provide you with it.
Also, check your credit reports for mistakes as it could affect your scores. You can request that errors be corrected by contacting the consumer credit-reporting bureaus.
Get the 500 Dollar Loan You Need
There you have it! Building good credit may be the last option when you need a 500 dollar loan right away with bad credit.
With poor credit scores and an immediate need for funds, using the ways mentioned above could be your best option.
Make sure that you compare the rates and terms offered by each lender to get the most affordable for easy repayment.
However, having a bad credit doesn’t mean it’s written in stone. If you’re not satisfied with your current score, the best thing to do is building your credit score before requesting a loan.
Continue reading our blog for more financial tips.