Like any other form loans, an instant loan is a lending instrument which requires the applicants to have a good credit history. However, if you are someone who has a “less than perfect credit”, you can still qualify for such a loan provided you know your options. Here is what you can do to ensure you get the money that you need desperately even if you have bad credit or less than perfect credit.
Let us have a look at some options you can exercise if you have a bad credit score and is struggling to get a line of credit:
Payday Loans
For low-value loans, the most appropriate option – other than borrowing funds from friends or family members – is a payday loan. Since a payday loan depends on your ability to prove that you earn a sufficient monthly salary and are able to pay back the loan amount with your next paycheck, the lender is least bothered about your credit history. You, however, may be required to show proof of your employment and the lender may confirm it by contacting your employer. Once the lending company is satisfied that you hold a stable job and you can pay back the loaned amount with your next paycheck, it is much easier to get an approval for your instant loan. The procedure is very simple and quick, you are able to get the required amount of money within hours once your case is approved. Payday loans or instant loans are therefore a good option if you need to get a loan urgently.
Bank Loans for Bad Credit
In case you need to borrow a bigger amount and do not have an ideal credit, you can approach your bank and ask for bank loans for bad credit. Your bank may be able to offer you a secured loan, such as home equity line of credit or home equity loan. This type of loan offers more security to the lender as compared to an unsecured loan, since your home is pledged as collateral and in case you default, your bank reserves the right to reclaim the value of your loan through sales proceeds.
Credit Union Loans
Since Credit Unions offer more flexibility, it is easier to get a loan from them than from a bank. Anyone who lives in a particular geographical area or is a member of a particular society can apply for a loan through these credit unions. Since these Credit Unions are not-for-profit organizations, you can expect lower interest rates.
Peer-to-Peer (P2P) Loans
Peer-to-peer (P2P) loans are newer loan instruments and have gained quite a lot of popularity in the recent years. The interest rates are typically lower than the traditional bank loans or credit cards and you can borrow a higher amount using this option.