People with low credit may think that cash advances and payday loans are their only options, but there are other opportunities for substantial loans with financiers. Anybody who carries a credit score less than 660 are considered “soft” credit holders. This number will keep you from obtaining good interest rates and many credit companies will not give you a new line of credit. It takes lots of effort and a good chunk of time to get credit scores to go up, but if you want it bad enough, there are some things you can do to help your situation out.
You can get more than cash advances with “soft” credit if you try.
Don’t think that this other credit will be falling at your feet. You will have to go looking for it and be willing to adjust your situation as needed. These other options are not a “one size fits all” money option, but if you do find yourself in one of these categories, it would benefit you to act upon it as needed.
- Good job performance is increasingly being noticed by some lenders. Creditors know that the recent years have not been easy for most households financially, but if you have been getting raises and bonuses from work, some lenders will take that as a good standing point to consider you for new credit. Success on the job could translate to success with credit.
- You may improve your chances of getting a home loan if you increase a down payment. Being able to put more than 10% down on a home make get some mortgage lenders to turn a blind’s eye to your credit score. The normal down payment is from 3 to 10%, so if you have the money available to do more, your credit may not matter.
- First time home buyers have the FHA program available. These loans are backed by the U.S. government and tend to look less harshly at those with “soft” credit. You will have to buy according to the FHA rules and regulations, but if your credit score is keeping you away from obtaining your first home, you may want to look into this option.
- A co-signer with good credit may open doors for you as well. It’s a touchy subject for many since the cosigner will be responsible for your loan if anything goes wrong on your end. If you make your payments on time and keep that person from having to help with cash, you will be in a win-win situation. Your credit will go up with this positive loan since it is in your name also and you will not ruin the relationship with the cosigner.
- Avoid big banks and look towards credit unions, mortgage companies or peer to peer lender. If you can show proof that your credit score does not reflect your ability to pay, these companies will offer a bit more flexibility towards new credit.
Don’t let your finances go further down the slippery slope by failing on short-term loans like cash advances, payday loans or car title loans. Put effort into improving your situation by looking into all options available to you. Make your money work for you.
