It is definitely hard to bear when people are tremendously overwhelmed by their financial difficulties. Statistically speaking, the average debt per household is about $16,046 (based on the year 2009) including those debt that resulted from unpaid credit card bills and loans. If you’re experiencing such financial hardships, it’s hard for you to handle this on your own and you would look for any possible ways to overcome your financial problems. Based on your poor credit score, you might think that it’s nearly impossible to find a financial solution.
Think ahead – many who have low credit scores have managed to live their life on their own terms without debt, by paying off most of their outstanding debt with their personal loans. But your main concern is this – “How could I possibly find such loans if I have a very bad credit history?” Here’s how they find their perfect financial solution:
They look for BBB accredited non-bank lenders – they know that traditional banks would unlikely to grant loans to applicants who have low credit scores. Therefore, Better Business Bureau’s (BBB) business directory is the best Financial Strategies For Business resource for them to look for non-bank lenders that grant personal loans that require no credit check on their applicants. Make sure that these lenders have BBB ratings which reflect their credibility of their business.
They know that these non-bank lenders decide on the total loan amount – Basically, the total loan amount approved is based on your total earnings per annum. It means that the more income you’ve earned – the more loan amount that non-bank lenders would approve.
They would normally apply it from different lenders – This way is too risky as their Types Of Financial Evaluation credit scores would drop tremendously if their loans approved at the same time.
They would look for suitable guarantor if they couldn’t obtain their desirable loan amount – If the applicants couldn’t obtain a loan amount that they need, they would look for a suitable guarantor who is able to convince non-bank lenders to grant larger loan amount to their clients. The ideal guarantor must have good credit score and good salary. Normally, these applicant would prefer their family member, spouse or someone they can trust to be their guarantor.
If you’re unable to obtain a financial solution due to your bad credit score, you can consider having a no-credit personal loan for people with very bad credit although it has high interest rate. Make sure that you’ve the ability to repay the loan as agreed.