I do not have a great credit score, but still need to borrow some money. Is it possible to take out a loan? If so, how high will my rates be and is there anything I can do about it? Thanks.
You can take out a personal loan with a low credit score for sure. However, you should be cautious when viewing some of your options. The lower your credit score, the higher your interest rate will be and therefore the more money you will pay to the loaner. It should also be noted that you should be careful about how long you intend for this personal loan to go on for. The sooner you can pay it back, the better. Interest rates may be high, but if you can pay your loan back in a few months, you shouldn’t worry about it as much.
If you are worried about paying back your loan in a short time period, it may be best to get your credit score to an above average placing before taking out a personal loan. Remember, the higher the credit score, the lower the interest rate; the lower the interest rate, the easier the bill will be on your wallet each monthly repayment.
You can definitely take out a loan with a low credit score, though your options will be more limited. You can always try for a secured personal loan first, though you would need to put up collateral for it. If that doesn’t work for you, all your other loan options will unfortunately have high interest rates or you could risk losing some of your assets. You can take out a payday loan or subprime loan, which have high interest rates. You can also try pawn shops or auto title lenders, although you would have to put up an item you have as collateral (for auto title lender loans, it is your vehicle). Additionally, you can always just get a cosigner with good credit so you can take out a personal loan, or borrow from friends or family. Either way, you should always try to pay the money back as soon as possible. To learn about more options, you can check out this article.