Those who do not have a good credit rating or a sound credit history may not be eligible for conventional loans. Banks and nonbanking financial corporations shy away from entertaining applicants who do not have a credit history that meets their eligibility criteria. Thus, one has to opt for short term loans for applicants with bad credit.
Here are the commonly opted for short term loans, especially by those who don’t have a reasonably good credit score.
Home Equity Line of Credit
Homeowners can easily cash in on the value of the property. Depending on the property value, you can draw a home equity line of credit. Your credit history and similar such factors would not be under consideration while applying for home equity line of credit. The only thing that would be considered however is your salary or income. This is one of the best bad credit loans that you can get. Moreover, the trouble of being capped within a certain limit due to bad credit doesn’t really apply to home equity line of credit. You may notice that in most cases, people with bad credit are only offered small loan amounts. With home equity line of credit, you can comfortably apply for the amount that you need. However, this is a secured loan. Your home equity is being pledged or used as collateral when you apply for a line of credit, in other words short term loans.
Some credit unions offer short term loans for people with bad credit. Every credit union doesn’t. Besides making you eligible for a loan despite poor credit, the interest rates of short term loans from credit unions are relatively reasonable.
Peer To Peer Loans
There are many websites that offer bad credit loans directly from people and not from any lending company or financial institution. On such sites, a borrower directly seeks a loan from the lender who is a private individual. Cash Kitty offers you easy short term loans regardless of your credit score. Compare loans in UK and choose the one that best suits your needs.