Last Updated on March 18, 2021
Bad credit loans are the relief options for consumers with low credit scores that limit their borrowing options. In short, it is that loan that you take to pay your medical bill, maybe, repair your house or car while you don’t have the required credit score for another loan from a bank. They are treated just like personal loans. You borrow then repay at a fixed monthly installment. If you want to have such loans, you can approach a private lender for personal loans with bad credit, hence no need to worry about that as they are always available.
- What Is a Bad Credit Score?
- Things to Bring That Can Prove Your Creditworthiness
- Private Lending For Bad Credit in South Florida
What Is a Bad Credit Score?
The bad credit score is an attempt that gauges the likelihood of you repaying the loan. It ranges between 300- 500. If your score is high, you will have a better chance for you to get the loan. A score of 650 is where a lousy credit score start. Those with such a score are considered as high risk, and their interest rates are high since they are normally prime candidates for the bad credit loans.
Good and bad credit score differs from one lender to the other. Some private lenders for personal loans with bad credit won’t dare offer anyone who has a score of 650.
Things to Bring That Can Prove Your Creditworthiness to A Private Lender for Personal Loan Bad Credit
- Tax returns, from at least two years
- Job history details, like pay stub and salary
- Assets lists like houses, property, and cars
- Unsecured debts list like credit cards or medical bills.
- Whether there is child support or alimony you are paying
- Bank statements
Private Lending For Bad Credit in South Florida
Before deciding to take a line of credit, there’s a need to know how your credit score is. That way, you will be able to clear the things that need to be made as quickly as possible. A small collection of things can affect your credit and thus reducing your credit report. A single mistake in your credit report can also change your score. Ensure you have paid off all the accounts. Once everything is clear, then you can now think of different means available to get a loan. In South Florida, you have the following options available for you;
- Call your bank.
The only other entity that knows your capability to pay your loan apart from you is the bank. They know how you spend, average balances, times you’ve had overdrafts, among others. With a positive bank history, but having a low credit score, the bank can advise you appropriately and give the loans where applicable.
- Peer to Peer Lending.
Many don’t prefer peer to peer lending. However, big data and online service came together so that it can help make connections between borrowers and investors. It is hence making the process fast and straightforward.
- A loan from family and friends
If a family or friend offers to loan, ensure it’s through formal documentation to avoid complications later on. Ensure there’s an agreement on terms of payments, and all expectations to be meant in writing.
- Find a co-signer.
This happens when a friend or family wants to help but has no capabilities. He can help you sign the loan with you. The only issues are, in case of default, both of your credit scores are affected.
In conclusion, just because your credit score is bad, it doesn’t mean you can’t get a loan. You can look for more options that are available. Do the research well before you apply.
Hard Money Lenders IO is a Private Lending Company located in Miami, Florida providing loans to real estate investors and entrepreneurs. We specialize in offering loans to professional real estate investors for their non-owner occupied real estate investments. We operate throughout the state of Florida & have a network of investors nationwide.
Adam Smith has spent the last 5 years in the Private Money Lending world helping real estate investors secure financing for their non-owner occupied real estate investments. When he’s not thinking about real estate, Adam is an avid Jazz music fan and fisherman.