Obviously, it’s a definitely untrue thing that you can obtain such loans when your credit score is badly affected by unpaid debts, mortgages or your inability to perform your financial duties. Your loan application will likely to be declined by most lenders due to your poor credit record. For instance, LendingClub.com – which is a well-known online financial community which can bring together creditworthy borrowers and savvy investors, will not accept loan applicants who have lower than 600 FICO score.
Most common lending solutions that most lenders provide for people with poor credit history are debt consolidation loans and payday loans. However, here are the drawbacks of having these loans:
· Debt consolidation loans only treat the surface of the problem – meaning you need to make a large monthly repayment as all your outstanding debts are combined into one single (debt consolidation) loan.
· Payday loans actually make you pay more than usual because of its unreasonable high interest rates which can be more than 100 percent!
Therefore, you need to get a proper low interest loans from the right channel when you’ve lower than 600 FICO score. The right channel to get such financial assistance is from those non-traditional lenders who provide low interest personal loans with co-signer.
Here’s how you can get such financial assistance – which can be effectively done in 3 stages:
Stage 1: Finding reliable non-traditional lenders
1. Look for non-traditional lenders nearby or within your area that provide low interest loans personal loans with co-signer
2. Check out their legitimacy of their business through these major online resources including Better Business Bureau (BBB) directory, Google Map, and online personal finance forums and blogs.
Then, the hardest part is the following stage which you need to persuade someone to be your co-signer (or guarantor):
Stage 2: Looking for co-signer to back up your loan application
1. The ideal candidate (preferably your spouse or any one of your family members) has to possess a convincing credit score – at least 660 FICO score or above
2. Start a serious conversation with the candidate and explain how your financial situation can be resolved based on his/her consent (Note: Always keep a calm tone and don’t be too pushy throughout the whole conversation)
3. Present a constructive plan before the candidate to convince him/her that you’ve the ability to pay off the loan as agreed
Stage 3: Request for lower loan cost from the lender
1. Always request for lower interest rate or annual percentage rate (APR) when they acknowledge the candidate’s qualification as the co-signer and forego inquires on your credit report
2. Also opt for affordable monthly repayments so that you can repay low interest rate personal loan on schedule
3. Read the loan contract before you agree with the loan terms and conditions
Always put these 3 stages into full consideration when you’re looking for such loans – whether it’s from online or off-line. It is always better to do comparisons among different loan packages which are offered by various lenders in order to get an affordable low interest personal loan.