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11 ways to get personal loans with bad credit

11 ways to get personal loans with bad credit

Financial advisors almost always suggest that having a good credit score is the only way to secure personal loans. However, those who already have poor credit scores and need personal loans urgently may find it difficult to improve their scores overnight. The good news is that with the right strategies, those with bad credit reports can get their personal loans approved. So, here are some ways to secure personal loans with bad credit scores:

1. Get someone to co-sign the loan
The one who co-signs a loan promises to repay the loan in case the lender cannot do so. If the co-signer has a good credit score, lenders may approve the personal loan. One can consider asking trusted friends or family members to co-sign the application.

2. Correct errors in the credit report
Sometimes, the credit report may have errors, which may lead to low credit scores. An incorrect outstanding credit balance or a wrongly credited loan are some of the common errors here. So, before applying for a personal loan, one should check the credit report carefully and get any errors corrected from the bank.

3. Find a co-borrower
Having a co-borrower can increase the chances of loan approval. But this largely depends on the other person’s credit history, so one should choose a co-borrower with a good credit score. It is important to note that the credit scores of both borrowers will dip if they do not repay the loan on time. So, one should apply for a personal loan only after they have a plan in place to pay off the debt.

4. Establish the ability to repay
A recent salary hike or additional income source can increase the capability of repaying a loan on time. So, if there has been an overall increase in income, one should inform the lender about it. There is a chance that lenders may approve the personal loan on this basis.

5. Borrow a small amount
Asking for a large loan with a poor credit score would be met with higher chances of rejection. Lenders may feel more at ease lending a smaller amount here. If savings can cover a part of the required amount, then it is best to borrow only the remaining amount.

6. Pay bills on time for a while
Even a few months of paying bills on time can boost the credit score. If one can afford to wait for some time before borrowing, they should actively try to improve their credit score in this period by not delaying bill payments and improving credit utilization.

7. Be prepared for a hard pull
A hard pull or hard credit check is when a borrower asks to review the credit report before approving a loan. This request is recorded on the credit report, and multiple hard credit checks can affect the credit score. So, it is best to undergo multiple hard credit checks for the same product within 45 days, as this will be counted as one credit check.

8. Borrow with collateral
Banks and other financial institutions may approve loans if the borrower adds collateral, such as a bank account or a vehicle. If the borrower fails to repay the loan within the given time, lenders may take away the collateral. However, one should be prepared to give up the collateral in case they cannot repay the loan.

9. Compare minimum credit requirements
Different lenders may have varying credit requirements, so borrowers should compare terms of multiple lenders. Some may have a minimum requirement very close to the credit score, so there are higher chances of these lenders approving the personal loan.

10. Apply for a loan against property
This is a good option if one has more than one property. If the other house is not occupied and one is looking to dispose of it anyway, one may apply for a loan against the property. Here, the borrower’s property may be confiscated by the lender in case of failure to repay the loan. However, the approval of such loans depends largely on the value of the property and the ability of the borrower to repay the loan.

11. Apply for a gold loan
If one has some gold savings, it is a good idea to borrow with the gold as collateral. So, if unable to repay the amount, the gold may be procured by the lender. Gold loans are usually flexible, so they can be a good option for those with poor credit scores.

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Prepaid debit cards – Benefits and top picks

If you think prepaid debit cards have no value, you might want to reassess your theory and catch up with this smart budgeting tool. Prepaid cards can save you from overspending and help you budget without much hassle. You also won't have to worry much about transaction fraud or losing millions from the account in case of theft. That's not all. A prepaid debit card can come in handy in many other situations too. Easier money management Prepaid debit cards are an effective tool to curb unnecessary expenses. If you cannot help but go a little crazy on your retail therapy spree, this card might be the perfect solution. Once you load your card with a certain amount, you know without a doubt that there's no extra spending you can indulge in. Since the card encourages people to manage their money well, many have opted for it as a go-to payment method. Help with business budgeting If you're bad at tracking how much you spend or often fail to meet business expenses without spending out of pocket, prepaid debit cards can help organize your finances. Getting a prepaid card for business expenses means you no longer have to worry about either spending your personal cash or going over budget with business spending. At the same time, you can communally use the card for your startup without having to remind the team members to stay within spending limits. Reliable travel buddy One of the top reasons to invest in a prepaid debit card is that it makes for a nifty travel companion. Want to spend a weekend out of town partaking in adventures? Headed on a long vacation to another country? A prepaid debit card is an answer to your money-carrying concerns. Most prepaid or reloaded cards are accepted in various countries at payment points and ATMs. Some even offer payment options in local currency and USD. No account necessary Another great benefit of getting a prepaid debit card is that you might not need to sign up with a credit union or open a bank account. This is especially useful for people who don't want to go through the hassle of managing an additional account or already have to take care of a checking account. Since there's no bank account, prepaid cards provide the convenience of paying in plastic without bothering about the bank's processing fees. Moreover, you might be surprised to find out that transactions via certain prepaid cards cost less than bank debit cards! Besides providing the above benefits, prepaid cards are a fantastic source of rewards and rebates. Some even let you convert your rewards to cash, further contributing to your savings. But it's crucial to choose the right card. Some top prepaid debit card options you might want to look at are: Netspend® Visa® Prepaid Debit Card The Netspend® Visa® Prepaid Card works like any other traditional card, except it isn't linked to a bank account. If a poor credit history is in your way of getting a checking account, this might be the solution to your problems. By getting a Netspend® Visa® or Mastercard® prepaid card, you can access all banking features in the same place without hassle. In addition, you can load up $1,000 or more cyclically on the card without paying a monthly fee. Bluebird® American Express® Prepaid Debit With a monthly fee of $0 and free withdrawals from in-network ATMs, the Bluebird® card is among the sought-after prepaid debit cards. The cash loading limit for temporary cards starts from $1 and goes up to $500; however, when your card is activated, your reload limits range from $20-$1,999. In addition to these benefits, American Express® users can reload their cards a couple of days earlier than the originally scheduled date. Greenlight Debit Card With no ATM fee or reload fee, the Greenlight Debit Card is a great choice for parents looking to hand over the card to their kids. The card even comes with its own range of money management lessons to help children learn about responsible spending and saving behavior. However, you will have to shell out some money to pay the monthly fees, and it can't be reloaded with cash. Many banks offer cash cards as an alternative to debit cards. Cash cards can be used at ATMs to withdraw money, but unlike other prepaid debit cards, you won't be able to make payments in most cases.

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6 crucial debit card mistakes to avoid

Debit cards are convenient tools that allow one to complete a transaction easily. Since debit cards directly take money from the checking account, it ensures that a person only spends a limited amount. Plus, they do not even levy heavy interests like credit cards. However, despite all these advantages, one needs to avoid some mistakes when using debit cards; otherwise, they could end up losing money. Here are some common debit card mistakes to avoid. Using out-of-network ATMs As everyone knows, debit cards serve two purposes - making direct transactions (either online or by swiping) and withdrawing money from ATMs. What a lot of people might not know is that if they withdraw their money from an ATM that does not belong to their bank, they may be charged a fee for the withdrawal. Such ATMs are called out-of-network ATMs. The exact opposite of that is in-network ATMs, which are either owned by the respective bank or are within the bank’s partnered ATM network. By withdrawing cash from such in-network ATMs, one can avoid unnecessary withdrawal fees. Making big transactions with debit cards Debit cards do make shopping easier, but they also pose a slight risk. If an individual wishes to return an item that they purchased with a debit card, getting a refund for it won’t be so convenient. This is because when a purchase is made with a debit card, the amount can only be reversed when the merchant approves it. This is not the case with a credit card. Credit card holders can simply file a claim with the card issuer and get a refund on their returned items. This is why it is better to use credit cards than debit cards when shopping for expensive items. Not checking the balance regularly When using a debit card for shopping or other transactions, it is advisable to check the account balance before and after every transaction. The main reason is that payments made with a debit card sometimes take time to reflect in the account. So, if an individual only checked their account balance directly after they made a payment, they may not be aware of the amount remaining after that payment was deducted. Then, if they proceed to make a new payment without checking the prior balance, their transaction may get bounced if there is not enough balance. To avoid such a mishap, keep an eye on the checking account balance regularly. This also keeps one informed about any fraudulent transactions that could have taken place. Keeping the card’s PIN written Even though this is common knowledge, many individuals still make the mistake of keeping their debit card PINs written down. Since a debit card can give one direct access to all the savings and funds present in the account, their PINs must be kept secret. If someone gets hold of the written PIN along with the debit card, they may drain the entire account. This becomes an even bigger risk if a person prefers keeping a parchment with the PIN written on it in their wallet. If a thief manages to steal the wallet, they may get hold of the debit card PIN and steal one’s hard-earned money. Not confirming the cancellation of crashed transactions One may have faced this situation quite often when they try to pay at a store’s register and it crashes in the middle of the transaction. In such a scenario, the person handling the register may immediately initiate a new transaction after it starts working again. This is where a lot of individuals can end up losing money. So, when a register crashes, one must immediately confirm with the store manager if the amount got debited from their card before the crash. One can also call their bank to check if the transaction went through. If one neglects to do so, they may get charged double the amount as the money could have been debited with the first swipe. Making online transactions using a public Wi-Fi Public Wi-Fis are never safe to use, especially for making transactions. The reason is that, due to their low security, a hacker can easily attack and access the systems of other users logged onto the same network. So, if a person enters sensitive information like their debit card credentials, they risk that information getting stolen and their money getting robbed right out of their checking account.

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