Borrowing when you have bad credit isn’t ideal, but sometimes, there’s no way around it. After all, a critical cash loan may be the only way you can fix a flat tire or take your child to a doctor. You need help, even though your past borrowing history raises some red flags.
Have you ever wondered why your past history affects your future borrowing options? Then you’re in the right place. Here’s everything you need to know about how bad credit affects your borrowing options, and how you can find ways to get fast cash loans online with quick applications when you have a low score.
What is a Bad Credit Score?
According to FICO, the most popular credit scoring model in use today, all consumer credit scores fall between 300 and 850. These two numbers represent the worst and best scores you can possibly have.
You don’t need to hit rock bottom to have bad credit. Anything under 669 is considered subprime.
You may be sporting a low score for any of the following reasons:
- Charge Offs
- Late Payments
- Maxing out credit cards and not paying them off
- Too many hard inquiries into your file
Why Can Bad Credit Complicate the Borrowing Process?
A bad score suggests you’ve had some trouble repaying your debts in the past. Understandably, they might worry you’ll repeat this behavior if they advance your funds.
What comes next depends on your lender and its qualifying requirements, but in many cases, the biggest banks will refuse to lend you money.
What Can You Do to Boost Your Chances of Getting Fast Cash?
Living with subprime changes the way you approach emergencies and cash loans. If you can’t postpone an expense, consider these four options:
1. Explore Online Loans Direct Lenders
Many online direct lenders cater exclusively to people with bad credit. You may have an easier time qualifying for these options, provided you meet their other qualifying requirements. This may include earning enough money to prove you can handle a cash loan’s repayments.
While bad credit almost always increases the rates and fees you’ll pay when borrowing, comparison shopping can help you find the best possible price available to you today.
2. Borrow with a Cosigner
If you’re finding it hard to qualify for an affordable cash loan on your own, consider looking for cosigner loans.
Cosigner loans involve borrowing with a loved one who agrees to repay your loan if something stops you from making these payments. This cosigner increases the chances a lender gets paid and reduces their risk so that you may qualify for more affordable options. Your cosigner usually needs a good financial record and high credit score to sweeten the pot for lenders.
3. Get a Side Gig
Borrowing isn’t the only way you can get fast cash online. You can also start up a side gig online to earn a little cash on the side. You can leverage any skills or hobbies into a second income stream. This is a great option if you don’t have to pay for your expense right away, but it doesn’t work for urgent emergencies.
You can find fast cash online, even with bad credit. But let’s face it, it would be a lot easier if your score was better. Once you deal with today’s emergency, focus on what you can do to raise your score for next time.