If you are a student with bad credit, then you may have heard the word “No” when you’ve asked to borrow money. While having bad credit does make it more challenging, you still do have options available. It is great to know that there are loans you can obtain, to help get a car and get to that internship or summer job.
Go Visit Your Local Credit Union
Credit unions are often simple to join. Sometimes you need to be a union member or an employee of specific companies. There are cities that have their own credit unions for community members. A credit union is a not-for-profit institution and they do want to help students. Their structure for determining who is approved for a personal loan may be less strict than a traditional bank. A credit union may also have personal loans especially for individuals who have had bad credit or even no credit.
Ask Someone to Co-Sign the Loan
A co-signer is someone with good credit who is willing to sign the loan with you, to guarantee that the payments will be made. There are good and challenging points to consider about this. You would need someone close to you who has a good credit rating. You may need to have some very open and honest conversations with this person about your finances. Be prepared to answer hard questions about what you do with your money now. They will be well aware that you are a student in need of a co-signer due to bad credit. Put yourself in their shoes: would you co-sign a loan for someone if you weren’t sure they could keep up with the payments 3 to 6 months from now? Only do this if you are 100% sure you can make the payments each month. If you don’t then the bank will contact your co-signer to ask for the payment. This can make for a very uncomfortable holiday season now and long into the future!
Borrow from an Online Lender
Students can find online lenders offer loans for bad credit even if you have a really bad credit rating. Filling out an application at CashFloat is simple. Most like using online lenders because the terms are explained in a straightforward and easy-to-understand way. They also offer a variety of options to borrow money, whether you have no credit or bad credit. Brick and mortar banks are far more conservative and traditional. When you do business with an online lender, often you find they are more understanding about bad credit in your past.
Consider A Secured Personal Loan
If you have bad credit, you’ll have better luck getting the loan when you are putting up an asset against it. That’s because, with a secured loan, this asset now becomes collateral, giving a borrower confidence that you will pay them back. After all, any student certainly will want to keep their car, laptop computer or other valuable items. Because if you do not pay, the borrower has every right to claim your collateral as full payment for the debt. They probably would much prefer to have the cash, but they will accept your valuables as collateral because they knew that these could be sold.
Borrow Money from Family and Friends
This is actually one of the most traditional ways to obtain money for a personal loan, whether or not you have bad credit. If you are now asking people close to you for money, expect them to question you about budgeting and exactly where the money is going. Depending on your relationship with them, the amount of money and the circumstances, your friend or family member may also charge you interest on the loan.
Don’t let bad credit get in the way of reaching your financial goals. Just like any good student would: do your homework. Realise that there are wise and sound options available that will help you. Thanks for reading, if you are having money troubles please see this article!