It is sometime sad that those individuals who need money the most are the ones that have very little access in BORROWING money from various lending institutions. More so if the person has a low or bad credit rating, the more difficult it is for him to apply to any kind of PERSONAL LOAN. However there are still ways by which you can still apply for a loan and have a very good chance of getting one even if you have a bad credit score.
Home Equity Line of Credit or HELOC
Most homeowners may find that even if their property is already mortgage, there’s still value left on the house which is normally referred to as equity. If you are in need of a loan and would like to get one at the soonest possible time, you can file for a home equity line of credit or HELOC. Chances are you have a good chance of being approved because you will be using the remaining value of your property as collateral for the loan. Flexibility and independent use of the loan amount is one of the advantages when getting a home equity loan. You also get a lower rate of interest because of the collateral. However, the disadvantages of getting one are paying the closing cost of the loan; the lending company can cancel your line of credit at any time; fees and other charges may be levied if you don’t use the line of credit immediately and of course the possibility of losing your home in the event of a default.
Bad Credit Loan
There is also such a thing as a bad credit loan. As the term connotes, this a type of loan that people with bad credit ratings can apply with and are actually the ones qualified to apply. People with bad credit rating are easily pre-approved for this kind of loan. The downside to this is that the interest rates are really very high even prohibitive and the amount of money that you can borrow is very limited.