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It’s not impossible to get a loan with bad credit, but you’ll need to consider all of your options.
Your credit score and your debt-to-income ratio can impact the rates lenders are willing to offer you, so you’ll want to know yours before applying for a loan.
Borrowers with bad credit can consider approaching credit unions or online lenders, both of which tend to be able to offer lower interest rates than traditional banks.
They may also want to consider getting a secured loan, or getting a cosigner to guarantee the loan.
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Getting a loan with bad credit can be challenging, but it’s not impossible. There are several ways to boost your chances for being approved for a loan. We’ve asked experts how to get the loan you need, even if you have bad credit.
How to get a loan with bad credit
1. Understand how your credit score affects interest rates
Generally, a credit score is the most important factor in deciding what interest rate a lender will offer you. “Although many lenders offer personal loans to borrowers with only fair credit, you can expect to pay higher interest rates,” says Jamie Young, personal financial expert with Credible, an online loan marketplace.See the rest of the story at Business Insider
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See Also:
A secured loan puts your home or car at risk, but there’s a time and a place to use oneThe online GoBank Checking Account lets you deposit cash for a fee and receive early direct depositWhat to do with your emergency savings if your high-yield savings account rate has plummeted
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