How Do You Get a Personal Loan with a Low Credit Score?
Alright, so you missed a rent payment ...or four, and you are realizing that your credit score is taking a hit as a result. Let’s also say that hypothetically you need to receive a personal loan for launching a new company that will surely make you a multi-millionaire overnight. Lucky for you, there are still several ways to receive a loan.
- Try a credit union/family member- You probably did not expect relatives and credit unions to be listed together, but both may serve as a more personal intermediary to receiving money. Credit unions are owned by their members, rather than profit driven shareholders and may be more likely to lend you money; borrowing money from a family member may incentivize you to pay it back because you do not want to ruin a relationship, and hopefully they will be more inclined to lend you money in the first place.
- Get a cosigner- If you know someone with a strong credit score, they may be able to sign a loan for you. The better the credit score means the less money you will have to pay, so be mindful of that.
- Get a secured loan- To receive a secured loan, you will need to borrow against a previously held asset (property or thing owned by a person). This could be, but is not limited to: your car with an equity car loan; your retirement account with an IRA -Individual Retirement Account- loan.
If you are still uncertain about how and where to get a loan, then check out Vola. We look at a variety of personalized metrics to give you a score that you can work with and start taking out loans right now.