If you have bad credit, trying to find a loan from a traditional financial institution is like trying to find a needle in a haystack. It's nearly impossible and endlessly frustrating. Though bad credit has always been a barrier in the loan market, with the state of the economy in the 2010s, unsecured loans are simply not given by traditional banks to most people with even middle-of-the-road credit scores. This is why if you need a loan and have bad credit your best bet is to look towards a private lender.
Informal Private Lenders: Going to Those You Know
Though the idea of a private lender sounds very fancy and formal, one such example can literally be sitting right next to you. Often, if you are in a tough financial situation and need money fast the best option is to look towards our friends and family for a private loan. This will eliminate the need for a credit check and often will carry little to no interest and a flexible pay-back scheme. However, if you do employ this option it is of the utmost importance that you work out a written plan and stick to it.
Many people may not have such resources or may not feel comfortable owing friends or family money. If this is the case, then a more formal deal may be able to be drawn up at work. Consider approaching your boss or colleagues for a more formal personal loan. It may even work out that you can have your payments debited directly from your paycheck.
Formal Private Lenders: The Internet and Personal Loans
Finally, the last private lender available is a more traditional choice: internet lenders. There are many businesses that you can access online who can help you get cash quickly either with or without a credit check. You are by no means guaranteed to get money from these lenders, however, those with a steady job and a good income will often qualify easily. It is important to know, though, that any unsecured loan will carry a high interest rate since there is no collateral for the lender to fall back upon should your payments default.
Avoiding Scams: How to Locate a Great Private Lender Online
If you need to look online to secure a private personal loan, then you will also need to know what to do and where to look in order to find a reputable lender. You may also choose to employ a lending agency to serve as a buffer between you and potential lenders. These companies will work for you and help you through the lending process and negotiations. Whether you chose the lender yourself, or use an agency it is important to do research on any company that you consider since there are a lot of scams out there. In order to locate a good, honest opinion on lenders, you can look to financial forums and clubs that have message boards. You should also run any company you consider through the Better Business Bureau's website.
Do Not Give Up: Remember, There Are Many Options
If you have bad credit and have been rejected by traditional banks, it is really easy to get down on yourself and feel like there is no way out of your current financial situation. However, there is hope for all out there who know where to look. Remember that friends, family, bosses and coworkers can be a source of a loan. Also, if that fails, the internet has a lot of options for you as well. It is just important to keep a good attitude and you will find the money you need.