Bad Credit Loans from Bank
A loan is readily available financial support for an individual with a good credit history and a high credit score. But many times, it is hard to pay off all debts on time due to financial troubles. According to FICO, individuals in the US aged 18-29 years have an average credit score of just 652. Failing to maintain a good credit score creates struggles for borrowers as lending institutions consider it risky to deal with low score applications and are reluctant to provide credit.
Still, alternatives are available for them. One of these is a bad credit loan from a bank. You can get a loan at higher interest rates, which is the cost of the lender to deal with a bad credit history applicant. However, finding such loans with banks can be difficult, but not impossible.
How to obtain bad credit loans
Consider the following ways:
- First of all, if this is a need but not a financial emergency, try to improve your credit score so that you can get a loan at affordable interest rates. Ensure timely EMIs and low credit utilization. It can increase your credit score by 100 points within 3-6 months.
- Tax returns: W-2s and 1099 forms of previous two years
- Provide asset details, including your home, car, property
- Tell them about your work history, and salary
- Details of your unsecured debts
- Present bank statements and investment proofs.
It may make the bank provide a lower interest loan.
- If it is an urgent financial need, try to convince the bank officials that you are creditworthy during the in-person interview. You can provide them the following details:
- You can apply for a loan with your family member or a friend with a good credit history who is ready to consign your loan.
Thus, you can still get credit to resolve your financial issues and work on your credit score by paying off your bad credit loan on time.