Loans are out there even if you don't have the best credit in the world. A score in the high 500s is considered to be subprime but is no longer off limits for many lenders. If you know how and where to apply, you can get the loan you need, whatever it's for.
Unsecured personal loans are traditionally hard to get unless your credit is good and your income is reliable. On the other hand, secured personal loans are obtainable if you have some form of collateral to put up against the amount you borrow. The lender will place a lien on your car, boat, jewelry or whatever valuable asset you present to the bank. In case of default, the asset is seized and sold and the bank recovers its money. With the risk of loss all but eliminated, the bank is often happy to make the loan even if your score is 580.
Car loans are available to consumers with just about any credit score. The main determining factors as to whether you will be approved for a car loan or not are your income and your willingness to pay a higher rate than a better qualified buyer. Subprime new and used car loans will typically require a larger down payment to demonstrate your investment in the purchase and to reduce the total principal being borrowed. When it comes to interest rates you can expect to pay more as well because the bank will want to offset the risk it's taking with the promise of more profit.
Mortgage brokers often have the inside track on what it takes to get the home loan you need. If your credit score is low and you are in the market for a new home, a broker may find the lender that is willing to take a chance with you. Brokers shop around for clients with all types of financial histories and they learn the requirements of each lender and the rules of the system well. They can find pathways and more lenient lenders than the individual ever could. There will be a fee involved for the services provided and the high rates associated with subprime loans have been well documented but in the end, if you get the loan it might all be worth it.
Payday loans are available to any borrower with proof of income no matter her credit score. Payday loans do not involve a credit check and require that the applicant bring two recent pay stubs to show that she is working and able to repay the debt. The amount you can borrow is usually determined by the amount of income you earn and the money can be made available almost immediately. Payday loans are not all good news however since they come with high rates and can lead to garnished wages if you fail to pay.
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