The Best Types of Loans to Consider if you have Bad Credit

• January 15, 2017

Sometimes, it is the individuals who need loans and credit the most that find it very difficult to get them. If your credit score is poor, you may think that you have been permanently barred from getting any loan, whether it is for sudden medical bills, home repairs, emergency car repair or even to purchase a home. But unknown to many people, there are different kinds of loans available to people with bad or poor credit and the following are some of the best options to consider if you belong to this category-:

Home Equity Line of Credit – HELOC

If you own a home and have equity on it, you may consider a home equity line of credit as one of the sources for bad credit loans. Of course HELOC comes with its own set of risks which you should evaluate well before deciding on it, it is one of the best loan options you will ever get if your credit is in tatters.

Credit Union Loans

When considering bad credit loans, it is far much easier to secure a loan from a credit union compared to a bank. Credit unions tend to have more relaxed standards and since they are not-for-profit organizations, they have the ability to expend loans and other financial services more cheaply unlike the commercial banks which are keen on making profits from every penny advanced to you in the form of a loan.

Peer to Peer Loans

Peer to peer loans is rather a newer, but an equally reliable way to get bad credit loans. Such loans are obtained from peer to peer lending websites such as Peerform, Lending Club, and Prosper amongst others. Through the websites, borrowers are able to get loans from individual private lenders instead of relying on banks and other financial institutions for the loans.