For some people the idea of getting a personal loan might seem like an impossible thing to do, particularly if they have either no credit or bad credit. While these situations don’t make getting the loan very easy, it still isn’t impossible in most cases. In fact usually if you want to get a loan badly enough, then there are several options that you can use to your advantage to help you get it in a relatively short space of time.
The easiest way to get a loan if you have no credit is simply to get someone to cosign the loan for you. This basically means that they agree to vouch for you getting the loan, and that their credit score is at risk if you don’t keep up with the repayments.Generally this type of thing is used by college students and the like who get their parents to cosign for their loans, however in theory anyone can do this so long as they have a willing cosigner. Usually relatives or friends are the best people to ask if you need a cosigner, due to the fact that they are in effect risking their credit score by helping you out.
Most loan companies tend to want to have some kind of credit history before they approve anyone for a loan, so getting credit references is a good way to start. This might be something as simple as a record of bills you have paid on time such as a cell phone contract, or even a car payment history. If you don’t need the loan right away, then building up your credit with this kind of transaction is a good way to build up some credit quickly and easily. The purchases don’t need to be that large necessarily, just that they allow payment plans over a few weeks or months.
If you have at least a few months to get the loan ready, then getting a series of smaller loans first is always a viable option. Firstly try to get the same compay you intend to use for the loan you want to give you a very small loan, with the payment term of a few months or so. Then pay back this small loan quickly, using more than the minimum payments each week.
After this is paid off, the next time you go back to them for a loan, they will have this as a record of your credit and ability to pay back debts. This then makes them more likely to approve you for a larger loan, which you then pay off again as fast as you can. Simply repeat this process enough times and you can then get the loan that you want, building up your credit as you go.
If you are very young, and as a result have no credit score from lack of financial transactions, then there are several companies that specialize in offering personal loans. Usually these loans tend to be expensive to pay back, as well as having to have a good reason for them being needed however. In these cases you should always make sure that the payments aren’t too much for you to afford afterwards, and that the loan company isn’t exploiting you with extremely high repayment rates.
Depending on your age and situation, you can sometiems get a personal loan secured on things that you own if they are of high enough value. So for example if you own property, an expensive vehicle or any stocks and bonds worth as muc as the amount thast you want to borrow, then getting a loan usually isnt that difficult. In some cases loan companies might accept some of the goods that you are securing the loan with as a deposit, or might want to keep all of the goods until you have paid the loan back.
Generally this kind of loan isn’t very common, and is usually reserved for people who have goods of a very high value, for example jewels or rare antiques. Also most loan companies don’t tend to deal with this kind of thing, so you need to do your research if you want this kind of loan.
The best way to make sure that you are approved for loans and that you can easily get credit is to make sure that your credit score is always good. This is easy to do in reality, and simply making sure that you make payments on time, and that you don’t bet yourself too deeply into debt is the easiest way to keep your score good.