We all know that getting a loan approved by credit institutions can be a major hassle, especially if you don’t have a good or strong credit rating. If you are trying to fund a small-scale business or a new house project by getting a loan with just your average credit rating but is afraid of being rejected, then worry not as this article will surely be able to enlighten you on where to apply for your loan. You see, even people with bad credit can still apply for loans, as long as you meet the right people and negotiate properly, then there is no reason why your loan shouldn’t be approved. Below are the top 3 sources of loan if you have an average credit;
- Credit Unions
Credit unions are the best source of loans if you have an average credit. Credit unions usually have more lenient standards compared to banks and other traditional lenders. Credit unions are mostly made up and managed by a group of workers in the same industry or a cooperative of people that aims to pool their resources in order to help their members. If you are a member of a credit union, then you might just get your loan approved within the same day of your visit. Although, take note that credit unions don’t offer big amounts of money especially if it’s your first time applying for a loan. Their system works in a way that members can apply for bigger loans once they complete paying up their previous smaller loans, so you might want to think about another source of loan, which brings us to the next choice;
- Payday Loans
Another popular and emerging source of loans is payday loans. From the name itself, one can quickly understand how it works. You will get your loan in exchange for your next pay, or a similar concept. The main advantages of payday loans are that they are quick and simple. There are many online companies such as PaydayPixie that can offer you payday loans as quick as 5 minutes. As soon as you get in touch with your representatives and present your documents proving your income, then you will be immediately referred and redirected to the company which will grant you your loan and sends you your money within the day.
Another advantage of payday loans is that they are specifically designed to cater to your needs, their payment terms are mostly flexible in order to work to your advantage. Companies that offer such loans usually have their own network in order to share and refer different clients to other companies who they deem are more fit for the client. Thus, with payday loans, you will almost be guaranteed of getting approved.
- Collateral Loans
At the end of the day, whether you have a bad credit or fair credit, you will still get a loan if you have a property to be used as a collateral. If you have a home equity – a portion of the value of your house which has already been paid and is considered as “yours”, then you will most likely get your loan approved even in banks and other traditional credit institutions.