How To Get A Personal Loan With Bad Credit
Those who have bad credit and are in a financial bind are often wondering how to get a personal loan with bad credit. There are actually some solutions to this problem that people may not know about or know and have forgotten. You may need any or all of the items listed below in order to apply for and receive any or all of the personal loans with bad credit discussed here.
- Government issued identification such as a driver's license or photo identification card
- Birth certificate
- Proof of Social Security number
- Previous year tax returns
- Income verification in the form of W2s, statement from unemployment office or other income verification such as pay receipts if self employed
- Ask friends or relatives. One way to get a personal loan with bad credit is to ask friends or relatives. Those who have the means may be willing to help.
- Go to pawnbrokers. Pawnbrokers give loans on collateral that they hold until you repay the loan, usually within 30 days. The best part is that if you pawn something you don't mind parting with, you don't have to worry about a bad credit report. The broker simply keeps the item you pawned.
- Get a cosigner. You may be able to get a personal loan with bad credit if you have a cosigner who has good credit. The simplest method is to apply to your own bank or your cosigner's.
- Use your home equity or other property. Even people with bad credit may be able to get a personal loan of they have enough equity in their home to borrow against. Another option is to borrow against real property such as a vehicle or other item of value.
- Get a student loan. Those who are in financial need and attend college are very likely to qualify for low interest Stafford loans. Credit is not a factor in obtaining these types of loans though students must be attending college at least part time, go through entrance counseling and sign a promissary note. Students are also expected to maintain a minimum GPA in order to stay eligible for these types of loans. Student loans are used for various purposes, but do have some limits. For example, student loans are not to be used to purchase a new vehicle but may be used to assist with the cost of attending school such as housing and books.