It can happen to most anyone at any time in their lives: your credit takes a severe hit. When this happens, getting a loan for a home, a car or school can seem just about impossible. Banks who offer secured and unsecured loans use a credit report as the basis for most applications. Today, many employers also use a credit report as one of their measures of a person’s worthiness. The good news is that there are places you can turn and things you can do to acquire money while you work towards restoring your credit score.
Online installment loans
When your credit is less than what a bank views as good ( under 680) getting a loan through them is almost impossible. Luckily there are installment loans available online through numerous reputable companies who use a different, less invasive screening process for approval. Most only require that you have a full-time job, an active checking account, and a social security number. They also offer multiple loan amounts, generally anywhere up to $1,500.00, with a repayment period of up to two years. This lets you pay small amounts over an extended period, allowing you to pay off bad debt and reduce existing sources of credit to raise your credit score.
Alternative ways to come up with cash
If your budget is so tight at the present time that it cannot handle even a small monthly payment, seeking the help of a family member might be your best option. First, a family member will generally let you begin to pay it back when you can, so long as you give a heads up to a date, and secondly, they won’t ask for interest on the money. So, what you borrow is what you return. The important thing to keep in mind is that you are borrowing money. Even though it’s family, you still need to commit to a realistic timeline and an amount that you can repay monthly.
Host a yard sale
If you can’t afford to take on an installment loan and you don’t have a family member who’s willing or able to loan you money, you could sell a few things you no longer want. Hosting a yard sale, especially if it’s been a few years since you’ve cleaned out the basement, garage, and attic, can get you the money you need quickly. Make the signs up in advance and hold it on a weekend free of rain or snow, this way you’re more likely to draw a larger crowd.
Tighten your belt
If you are coming up short each month and making payments late, you need to get onto a level playing field before you can begin to restore your credit. There are several ways to achieve this. You can cut out all frivolous spending until you reduce your debt, reduce your monthly expenses or take on a second job to meet your obligations each month. Any way that you look at it, the bottom line is that if you are not making enough to pay your bills and the money needs to come from somewhere.
Restoring your credit
Unfortunately, even if you’ve only missed a few payments, your credit score will drop considerably. This means that you’ll end up paying more for almost anything you need to buy. A mortgage, if you’re able to acquire one through a sub-lender, will have a much higher interest rate attached to it, the same goes for a car loan too. Because of this, it’s important to do everything you can to restore your credit score to a good standing as quickly as possible. Make arrangements with lenders that you have loans through and take on a second job, even temporarily in order to get things up to date. Once you do this you’ll once again be able to purchase things at a rate that’s much more affordable.