by Homerun Nievera, Negosentro.com |
Sometimes, life is tough and unfair. You need money, you need it now, but you have bad credit. The financial system tends to punish those with bad credit, leaving them with the sense that they have relatively few options to get out of the hole they’re in. Too many people don’t pay any mind to their credit status until it’s too late to do anything about it in the short term. Re-establishing good credit takes a lot of time and effort that you might feel you don’t have. If you have bad credit, and need a loan, what options do you have? The first obvious one, if you haven’t already considered it, is going to your family and asking them for money.
Depending on the amount of money you need, and the level of trust they have in you, they may reject you or pass you off to someone who can provide you with it. If family won’t or can’t loan you any money, you could ask your friends or co-workers, too. You might be ashamed of your need to do so, but swallowing your pride and admitting you need help from them is a great way to get that help. As long as you repay your debt in a timely fashion, you will establish a private line of credit that might not be good enough to get a bank loan, but will guarantee future loans from those closest to you.
The Easier Ways
Another option you have is going to a credit union. These institutions tend to be more lenient than the bigger banks, because they employ a more personal touch to their customers. The credit loan customers all have a stake in that institution, and if you get apply and receive a loan from them, you will bear share of the burden for the institution’s future financial health. It is advisable to get a small loan just for what you need, rather than a large loan that could prove too difficult to pay off. Little by little, you will re-establish your credit to the point where larger loans from banks would be possible.
For bad credit loans Australia also has what are called payday loans. These small loans can be received so long as you have a job and can prove that it provides you with steady income. The expectation is that come the next pay day, you will pay back your loan with any interest. The advantage to these payday loans is that your income, not your credit score, is what determines your ability to get the loan, and payday loans of virtually any size are available. So long as you pay it back, the number of said loans you can receive is potentially limitless.
The Hardest Way
The harder option to get a loan with bad credit is taking the time to pay off your debt, whether incurred via credit cards or bank loans. By demonstrating a willingness to pay what you owe, slowly but surely you will rebuild your credit to the point that future loans are possible. Any of the above options are available to you while you engage in the past of re-establishing good credit.
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Homerun Nievera is a serial techpreneur, digital marketer and professional speaker.
Apart from managing tech enterprises, Homerun is the publisher of a blogazine network that delivers niche content to its audience.
He also a Certified Distance Educator from the University of the Philippines and has launched Edusentro.com with the objective of bringing free education to under-served areas everywhere.
As a blogger, Homerun writes across various topics but looks into techpreneruship as his main course.
He seeks to help entrepreneurs build their digital presence and make a difference. Follow Homerun on Twitter @bnievera