Bad credit rating means your credit score is a figure that falls in between 300 – 630. You may have heard a lot of sources that claim having bad credit rating on your credit report makes it very difficult for you to be qualified for a loan. This is a fact but having a bad credit is not a dead end as there are still plenty of solutions for you to borrow money.
Bad credit credit card is an example of an unsecured loan that you can apply when your credit score is not up to the acceptable to get approved for a regular credit card. There are fully functional unsecured credit card that people with bad credit can apply without affecting the credit score. Unsecured credit card meas you don’t have to go to the card to deposit money into it to use for your shopping.
Borrowers whose credit score is too low for them to qualify for a normal bank loan can turn to P2P loans. P2P, also known as peer to peer loans means you are borrowing money from an individual instead of a bank. With P2P loans, you can receive the money in as fast as 3 days. There is no need to submit any collateral and most P2P loans also do not have any hidden charges. In P2P loans, you must first post the amount that you want to offer and the individual lenders that are interested will respond by posting their offer. The monthly payment is fixed and you can prepay the full amount at anytime that you want without getting charged with extra fees.
If you are a member of a credit union, you can apply for the signature loan to temporarily cover up the urgent expenses. Signature loans is so named because your signature on the agreement is the only thing that is needed for getting the amount of money you want to borrow. You must keep making a fixed monthly payment until the total amount have been fully repaid. There are lots of signature loans for bad credit that can be approved instantly.
Another type of unsecured loan that people with bad credit can easily qualify is payday loan. Getting approved for payday loan is very easy and it is possible to receive the money in the same day after you have submitted the loan request. Many people complained that payday loan has high interest rate that is up to 400%. However, if you need the money urgently and you know you can payback by the due date, it is all right to apply for the loan. If you know you can’t afford to pay back by the due date, it probably isn’t the right decision to apply for the payday loan.