If you are typing I need urgent money, and now I am unemployed, my credit ratings are low, what are my credit options in search engine then you have landed at the right URL.
We have answers for your every query. The requirement for money is something that can arise anytime. Your credit score is no doubt the critical metric for getting approval on the loan application. Individuals with good credit ratings get loans on suitable interest rates and manageable terms.
One of the popular options for people having imperfect ratings is loans for bad credit with no guarantor. Don’t be discouraged. This is not the only credit option available there are several more that are designed for individuals with low credit scores.
You can explore each of them to see what suits your financial situation the best.
Most popular credit options for people with bad credit score
Many lenders feel hesitant to approve individuals who have bad credit scores applications. The primary reason is the high risk involved in such a loaning process.
A bad credit score indicates that an applicant has missed the repayments, has other ongoing debts, and the capacity to repay the borrowing is low. Therefore it becomes very challenging for such persons to acquire a loan when they need funds immediately.
Don’t worry. If you have low credit ratings, below are some of the credit options you can utilise to arrange funds.
- Secured loans
A secured loan needs to have your asset to acquire it. If you have any assets like property, FDs, gold, or other securities, it would be an advantage to get the credit sooner.
But the value of the secured loan will be 60-80% of the collateral you put as the loan security. However, you will get an advantage on the loan term and the interest charged.
- Unsecured loans
Many direct lenders and financial institutions provide unsecured loans for bad credit with no guarantor. But you have to compromise with the loan amount, its tenure, and the rate of interest that are generally higher in this type of loan.
Here, you don’t require putting any of your assets to obtain the loan, but a high rate of interest will be charged. This is because you are putting more risk on the lender. The more risky loan, the higher will be the interest.
- Gold loans
To acquire a gold loan smoothly, you will have to provide your gold as collateral security to your lender. It is a type of secured loan that puts the lenders at low risk, so the chances of getting approval on your application increase.
Here lenders will not gauge your credit score before approving the loan. The utmost element of this loan is that it is provided with instant processing. The disbursal of the money is also quick with flexible repayment tenure.
- LAP (loan against property)
Again this is another type of secured loan. Suppose you have any residential or commercial property in your name. You can approach a lender providing a loan against the property.
Mostly the tenure of this loan is 15 years, but many lenders offer loans against property for 20 years as well. The loan value will highly depend on the worth of your property and, of course, your capability to repay the borrowed money.
LAP is very advantageous for all those individuals who require a big loan amount. Since the repayment tenure is lengthy enough, paying it back will not wobble your finances.
- Top-up home mortgage
If you have already availed of a home loan, you can check with the lender for a top-up. Unlike a car loan or home loan, you can use this top-up loan for any financial activity.
The interest rate on this loan is considerably lower than other credit options. If your home loan has a few more years to complete, you will also get time to repay the top-up along with it.
- Credit card loans
Credit cards are not only meant for swiping. You can also get a loan against them. You can examine your qualification with a credit card provider to determine whether you are eligible for the loan.
Loans against credit cards consist of easy processing and instant fund disbursement on the same day of application.
Please note that the loan value will be determined according to your credit card limit. But many credit card providers offer a loan above the limit with tenures from 5 months to 5 years.
A credit card loan usually entails a higher interest rate than any other loan. Therefore before beginning with the process, understand the interest rate.
Financial emergencies come in different forms and sizes. Furthermore, a person with a low credit rating faces challenges securing a good credit option. Your only funding option is loans for bad credit with no guarantor to take care of such situations.
But you have several other credit options to choose from. You just need to do your research and grab one that meets your affordability and requirement.
What your credit rating is it helps the loan provider judge your capability to repay the loan. Therefore, you have to take the proper steps to improve your score. Your credit score holds more significance than just being a three-digit number. You also deserve to get the best financing option to get your circumstances on track.