Tips for Getting a Loan with Bad Credit

There will be times throughout your life where you will need to borrow money, buying houses or cars, but a good credit score is a must.  Lots of us due to different circumstances find ourselves with poor credit or even worse no credit history at all.  That can make getting a loan difficult if not impossible.  People with poor credit scores are considered very high risk, having a greater chance of defaulting on the loan.  If you don’t do something to improve your credit score you may never get a bank loan.

There are alternatives, however the interest rates can be enormous.  Here are some tips for getting a loan with bad credit.

Improve Your Credit Score

First of all you should do everything within your power to improve your credit score.  Even a couple of points can be the difference between a yes and a no.  Start by pulling your own credit report at all three of the credit reporting agencies.  Make sure that all the information they hold is correct, mistakes happen all the time and you need to have them corrected.  Pay down some of your existing debts, this will also go a long way in improving your score.  Here is a video showing you more ways to improve your credit score.

Home Equity Loans

If you own property and have equity in it, you can get credit using the property as collateral.  These loans tend to have lower interest rates and can be tax deductible.  However should you default on the loan you run the risk of having the property repossessed.  Make sure that you have the ability to repair the loan or you could put your home at risk.

Try a Credit Union

Being turned down by a bank is not the end of the road, you can also try a credit union.  They operate very similar to a bank but they are owned by the members.  You can get loans through a credit union at a lower interest rate and their credit requirements aren’t as stringent as a typical bank.

Peer to Peer Loans

This is a fairly new concept but it has grown in popularity over the last decade.  There is an online platform that you register for and you can borrow money from individuals rather than a bank or finance company.  You must indicate how much you want to borrow and the reason you want to borrow.  Potential lenders can check out your profile information and decide whether to grant the loan.

Despite having a low credit score there are ways that you can improve your credit score and secure a loan.

Tip: Check this out if you’re trying to get a 203k FHA home loan instead

Tips for Getting a Good Loan for your RV

Getting a recreational vehicle is a massive purchase, unlike the purchase of a general car or home. It requires a lot of financial assistance from a money lender or a bank to ensure  your dreams of acquiring RV happen.  Most of the lenders who specialize exclusively in RV loans have a different criteria based on various factors unlike auto financing and home mortgages which is considered as necessary requirements, RV loans are considered luxurious. The following tips will aid you towards getting a good loan for your RV.

1 Search for different sources

A buyer should ensure making inquiries from various banks or lenders in order to find the best financial source with good terms which are friendly to the buyer.

2 Check your credit score

A strong credit score assures one a better rate of interest on the loan and also determines the amount of loan you can qualify to get. You can improve on your credit score by pay all outstanding debts in order to qualify to high loan limit which in turn enable you to get your RV.

3 Beware if there is equity amount in your RV

Equity amount is calculated by dividing the value of your RV with the total amount owed. This is what most lenders use in determining the eligibility of loan.Therefore you should consider having a positive equity amount which will hence boost on your loan limit.

4 Ensure quick repayment of the loan

Many RV buyers normally select a long term loan in order to secure lower monthly payments. This will in turn make the borrower to pay a lot of money compared to the actual value of the vehicle. This results from high accumulation of interest rates over time.

5 Research more about the loan on the website

As a borrower, you need to conduct enormous research to find out the companies and agents who specialize mainly in RV loans. Choose the loans without any additional fees or difficult terms and conditions that may arise as a result of late payments of the loan.

6 Choose loans with simple interests

This are the kind of loans which are based on monthly payments until the loan amount is fully paid without encountering any penalties such as; prepayment penalties. Avoid any RV loan that has no monthly payments.

7 Down payment savings

Ensure that you have bigger deposit value. A bigger amount of down payment lowers the monthly payments thus decreasing on the interest rates. You should have a down payment of between 10%-20% to enable you acquire your RV in a more affordable and convenient way.

8 Look into the credit unions

Belonging to a credit union is an added advantage towards securing a RV since most of the trade unions offer their members with cheaper loans with less or no interest at all. Credit unions should be your first lending site before looking for other lending sites such as banks.

9 Compare your debt to income ratio

You may never qualify for RV loan with reasonable rates and flexible terms of repaying the loan if the total monthly debt payment of your household is very high compared to the gross income earned.

Proper consideration of the above tips will in turn enable you to get the loan target for your RV hence fulfilling all your dreams and aspirations. They are simple procedure with no complicated terms and conditions; therefore, it is seen to favor everybody who meets the requirements. Don’t wait apply for your RV loan today!