Over half of Americans currently have credit scores that are considered poor. Whether your low credit score is the result of financial mistakes or unfortunate circumstances, you might find yourself in need of a loan. Fortunately, there are lenders who specifically cater to individuals with bad credit.
A bad credit loan functions similarly to a personal loan, but there is one significant difference—the interest rates tend to be higher than those of an average personal loan. This increase is primarily intended to protect the lender, as many individuals with poor credit histories have a track record of late payments or nonpayment.
The good news is that there are now numerous options available for securing a bad credit loan. The financial industry has evolved to meet the demand for such loans, offering more choices than ever before. Here are some avenues to explore when seeking a loan despite having bad credit:
- Credit Unions: Consider approaching a credit union for a loan, as they often offer reasonable interest rates capped at around 18%.
- Co-Signer: If you can find a co-signer with a high credit score, it significantly improves your chances of securing a loan.
- Home Equity: Leveraging your home equity can be a viable option, as your credit score may not be a determining factor in this case.
- Online Lenders: The emergence of online lending companies, such as Wise Loan, has made the process of finding a bad credit loan easier than ever. Many of these lenders offer flexible terms and payment options to accommodate your needs.
When you require a bad credit loan with a fair interest rate, a streamlined application process, and swift cash deposit, you can trust Wise Loan to have your back. Feel free to reach out to one of our agents or start the application process now by calling 800-516-7840!
The recommendations contained in this article are designed for informational purposes only. Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.