Whether you’re trying to buy a vehicle, need money for a new venture, or in an emergency, then not being able to get access to financing because of your credit situation can be frustrating. Especially when it’s because you haven’t established a credit history yet. It can also be tough if you have blemishes on your credit report. However, there are still some things you can do, even if you have no or bad credit. Here are a few of them.
The first thing you should do is check your credit situation. Know that you are entitled by law to a free copy of your credit report from the three major credit agencies: Equifax, Experian, and Callcredit.
The reason why it’s important is that there may be errors on the credit report that are affecting your score negatively. Or there might be accounts you completely forgot about on there. If there are errors, each bureau allows people to dispute them through a simple process. If you notice something there you completely forgot, you can contact the debtor and try to settle.
If it’s a collection agency, you can get them to negotiate your debt down significantly since they usually buy these accounts for pennies on the pound. However, always make sure that they will report it to the agency and have them commit in writing before you pay off anything.
Payday loans are another alternative if you have a steady income. A lot of people are apprehensive about them. For one, the amount of money you get often won’t be high enough for major expenditures, and the repayment terms can be stringent. The penalty and rollover fees can be a problem and lead you into a vicious cycle. Payday loans are usually the best bet if you have a small emergency you need to deal with but not too much that it could put you in the hole, like a small appliance or car repair, for instance.
Instalment loan lenders, just like payday loans, will also privilege your income history over your credit score when awarding loans. But that’s where most comparisons end.
For one, instalment loans will allow you to access a lot more money. Lenders like LoanPig, for instance, will allow you to borrow up to £1,500 on your very first application. Not only that, but you’ll be able to stretch payments for much longer, which makes them much easier to manage. Instalment loans are a great alternative if you have a regular source of income and would like to pay for a bigger project, like buying a small car, going on a trip, or buying inventory for a small business.
As you can see, all hope isn’t lost even if you have poor or no credit. There are many lenders out there that will be more than happy to help you. Just make sure that you consider all the options available.
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