Traditional sources like banks may seem evanescent when we have bad credit history but there are other options also. By this time you might have explored many options and marched into banks already. The key is not to get demotivated and look for the right path. Let us take a look at the possibilities:
BASIC STEPS FOR GETTING LOAN WITH BAD CREDIT
Separate the bad personal credit from the bad business credit.
The first step one should take is to separate the bad personal credit from the bad business credit. A credit score of 580 or below is considered to be a bad credit score in case of personal credit and in case of business credit a score of 24 or less is considered bad credit. It is significant to separate bad personal credit from bad business credit to explore variety of possibilities for getting loan which may be suggested by a financial adviser or the financial institution itself.
Define your goals
It is also crucial that you clearly define your goals for obtaining the loan. There are different loan programs meant for specific purposes like mortgage loan, home equity loan, housing loan, car insurance loan, business loans etc. Make sure that your target clear so that while writing the application for the bad credit loan you have everything ready to convince the lenders. Make sure that you have clearly identified what kind of loan you need to suit your requirements.
RESOURCES FOR BAD CREDIT LOANS
Loans from Employer
If employed one can contact the finance or HR department of the company, explain the reasons and submit a request for a loan. Generally such requests are accepted and the some amount is deducted from the employee's salary for the repayment of the loan on a monthly or annual basis.
Co-Signatory with good credit
Look for friends and relatives that have good credit history, if someone with a good credit history agrees to become a co-signatory than the chances of getting the loan approved are increased tenfold.
Friends, Family and relatives
The closest option is to search is some one in family or friend circle who can lend you money. One should take pains to assure that the loan will be paid on an as soon as possible basis, also make sure that you borrow what you are capable of returning. This builds and retains trust and ensures help in the future also.
If possible try secured loans to suffice the requirements if you possess any business assets. Providing collateral against the loan might encourage the financial institution to pass the loan request.
Stock, Securities and Bonds
If you have securities like stock or bonds then make sure that you use them for your advantage, this will encourage the loan lenders to give you credit as needed.
Consulting an Adviser
One should consult a financial adviser as he/she is the best person to consult with in such situations. Explain and define your needs and reasons for the loan requirement so that the financial adviser and give you proper direction and quote for obtaining loan in bad credit situations.
There are non-profit organizations that have programs to support business ventures, they provide grants. Contacting such organizations becomes very important when government banks refuse loan for bad credit.
There we go with so many options, its time to get what you want now.