When you have bad credit, finding a lender can seem impossible. Whether you are in an emergency or need business expenses, there are ways to secure loans for people with bad credit.
Try Peer-To-Peer Lending
Depending on how bad your credit is, you may have success using peer-to-peer (P2P) lending services. These services typically involve other people who contribute to the pot to help fund loans or some may be businesses who are interesting in funding the goals of individuals.
You can typically have a lower credit rating than would be approved by a bank or credit union when applying for a personal loan. If your credit rating is extremely low, it is unlikely you would be approved.
PayPal Working Capital
If you have a business that processes payments via PayPal, you might qualify for their Working Capital program, regardless of your credit score. Your approval is based on the amount of money you process through PayPal, not your credit. The amount you are approved for is a portion of your total annual sales.
Once approved, a percentage of each sale is taken back to make repayments on your loan. This is a good option if you have bad credit and are self-employed or other otherwise managing an online business.
Some online lenders will approve loans to people with bad credit. These loans can range from a few hundred dollars to several thousand dollars. The amount you are approved for will likely be based on your credit score and income.
You should also expect to pay a higher interest rate depending on your credit worthiness. However, online lenders are an invaluable option for people with bad credit who would not secure a loan through conventional means.
When you have bad credit, you probably assume your options for a loan are non-existent. The online world has created many resources that allow people with bad credit a second chance at securing loans for people with bad credit.