Consumers may feel they have hit the end of the line when it comes to poor credit. They might think the weight is too much and there is nowhere they can turn. However, this is not the case. Even with poor credit, either due to mistakes or risks taken in the past, there are still ways a consumer can qualify for a personal loan.

For a few tips on qualifying, consider the following:

• Get an opinion:

  Qualifying for a loan, in many cases, means having a strong credit score. However, there are ways you can improve your credit report. A good course of action would be for a consumer to meet with a financial advisor and discuss his or her credit history,¹ and how their credit history and spending may affect their long-term financial goals. While a consumer is certainly entitled to apply for a personal loan without speaking to a financial advisor, this is not recommended, as there may be alternatives on the table that he or she weren’t aware of. Before applying for a loan, consumers should always have the opinion of a financial advisor.

• Be specific:

  When a consumer has poor credit, a lender is going to assume that his or her spending habits, or maybe even overall perceptions about financial management aren’t perfect. This will cause a lender to take a careful look at the request the consumer is setting forth. For this reason, a consumer must be sure to be specific about how much the loan they want is worth and what exactly it is for,² according to the Houston Chronicle. Asking for too much will likely result in a quick denial, but asking for too little might demonstrate the consumer isn’t entirely knowledgeable about the lending process. When applying for a personal loan, a consumer needs to be exact on the amount and the reasons behind it.

• Be willing:

  If a consumer has poor credit history, there might be terms tacked onto a personal loan such as high interest rates, or short-term repayment options. When a consumer applies for a personal loan, he or she must be aware of any additional repayment fees before accepting it. Accepting this high interest rate might be the only measure by which a consumer can qualify, but it means a loan is available to the consumer when he or she needs it.

When it comes to applying for a personal loan, Cash Central accepts applications from all consumers. For more information about qualifying for a personal loan, or what a consumer with poor credit can typically experience when going through the personal loan repayment process, check out the Cash Central Resource center.

The views expressed by the articles and sites linked in this post do not necessarily reflect the opinions and policies of Cash Central or Community Choice Financial®. 

Sources:

¹Edward Jones. Retrieved from: https://www.edwardjones.com/us-en/market-news-insights/guidance-perspective/protecting-credit

²McQuerrey, Lisa. Retrieved from: https://smallbusiness.chron.com/list-different-sources-shortterm-business-financing-59205.html