Bad Credit Loan Options
Posted on Monday, May 16th, 2011 at 9:27 am in Helpful Payday Loan Info
If you have bad credit and need a cash loan, you might have more borrowing options than you may think. Many people with bad credit think they don’t have the same access to bank services like loans or credit cards. As the economy struggles to recover, many banks are rethinking their credit score standards and offering loans to people with lower credit scores than they originally approved. Payday loans are always an easy bad credit option, but here are some other ways to get cash that you may not have realized.
Credit Unions
A credit union is like a community bank. Everyone with an account at a credit union is considered an owner and can influence the financial institution’s policies. Credit unions offer all of the same services as a bank, but most have better interest rates and easier qualifications for loans. You may be able to qualify for a personal loan from a credit union even if you don’t think your credit score is good enough. A personal loan from a credit union will cost much less in interest than a payday loan and may even be more affordable than the same loan from a traditional bank.
Bad Credit Credit Cards
Some banks have started offering credit cards to people with bad credit to help them rebuild their FICO score with responsible money management. Sometimes these cards are secured with a money deposit, and sometimes they simply have a higher interest rate than credit cards approved for people with good credit. Still, your interest rate will be lower than a payday loan and you’ll have credit on hand for sudden emergencies. The only downside is that credit cards offered to people with bad credit tend to have very restricted credit limits. You could probably borrow a bigger cash amount from a payday lender, but at higher interest. Research your options first before making a decision either way.
Payday loans make sense in some situations. But remember that there are always other options out there. Choose the financial product that works best in your situation.
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