Is your credit score in the red zone?
If it’s any consolation, you’re not alone. About 53 percent of credit-active consumers in the United States have bad credit.
Bad credit, though, has significant consequences. You might be denied access to crucial services, such as housing and bank loans.
Don’t lose hope. It’s still possible to maneuver your way and access some of these services, even if you’ve got bad credit.
In this article, we’re telling you how to get guaranteed installment loans for bad credit.
Know Your Credit
You’re probably wondering what else there’s to know about your credit when you already know that you’ve got bad credit.
Well, bad credit is a broad term used for credit scores that range between 580 and 669.
Not all bad credit is equal. For instance, a person who has a credit score of 669 has bad credit, yes, but lenders won’t necessarily view him in the same light as someone who has a credit score of 580.
The former is almost breaking into the green zone while the latter is almost slipping into the poor credit zone.
When you know your exact credit score, it’s easy to know whether you qualify for certain bad credit loans. This is because some lenders might have credit score requirements, even if they market their loans as bad credit loans.
For instance, it’s possible for a lender to offer a bad credit loan, but only approve borrowers with a score of no less than 600. So, if your score is 595, you now see how you won’t get that loan.
Your Income Is a Strong Selling Point
Let’s face it: having bad credit certainly means you’ve made some financial mistakes in the past. Maybe you’ve defaulted on a loan or two.
However, this doesn’t mean you can’t be able to service a loan right now. Bad credit loan lenders know this.
To prove that you can pay up a loan, though, you need a steady income. As such, when you’re looking for an installment loan for bad credit, your income is a big selling point.
If you’re looking to borrow $2,000 and you’ve got bad credit, ensure your income statement shows that you can repay this amount within a certain period. Before submitting an application, gather your proof of income. This could be your pay stubs, self-employment tax returns, social security checks, or business bank statements.
Research and Find an Ideal Lender
There are lots of bad credit lenders, each with unique approval requirements.
When you want a guaranteed installment loan for bad credit, it helps to do your research and find a lender whose requirements you can fulfill. These loans, for instance, might be appealing to you.
Besides the approval requirements, you also want to look at the reputation of a lender. Read up online reviews to see what other consumers are saying about the lender before you apply.
Get Guaranteed Installment Loans for Bad Credit
Yes, it’s possible to get guaranteed installment loans for bad credit. You just need to know where to find them and how to prepare your application. With this guide, you now have useful tips that’ll help you get the loan.
Keep reading our blog for more handy tips and hacks.