Is your credit score low? Do you have what they call bad credit? A FICO score of 579 and below makes up bad credit. The problem with having a low FICO score is that most traditional lenders will not give you a personal loan. In modern times, however, having a low credit rating is not a death sentence. Some lenders are willing to lend you money. Their loan terms are uncomplicated too, and you can use their loans to improve your bad credit history. It can happen if you pay their loans on time every month. If you are searching for money loans Cedar Rapids, IA, and bad credit, some lenders can help you. This is particularly if you want a personal loan for your real estate projects.
Hard Money Loans and Bad Credit
A loan product that is specifically made for people with low credit scores is a hard money loan. Generally, this kind of loan has a higher interest rate than a similar product for people with a higher FICO score. Depending on the type of personal loan you want, you might pay higher fees or receive a smaller loan amount.
How to find a suitable hard money loan with below average credit score
• First, check with credit bureaus to verify that your credit score is indeed low. Sometimes the score you have is because of some errors that can be corrected.
• If you have existing debt, try to pay it down to boost your credit score. The worst of all debts when it comes to credit rating is credit card debt. If your credit card debt is more than thirty percent of your credit limit, do something about it now.
• Another way is to find someone who can agree to become your co-borrower and has a better credit score than you. Although this is difficult, you can do it if you have a good friend who understands your situation.
• Finally, try a loan lender who accepts terrible credit. This sort of lender uses something else to reduce their odds of losing money. For instance, they will charge a higher interest rate or ask for a higher down payment when offering a short-term house loan.
• Take the time to gather loan products from different sources. Compare their interest rates, origination fees, payment terms, loan amounts, and other factors. Pick the most favorable of all.
The amount of cash you can borrow with bad credit
With a low credit rating, lenders might not want to give you a big loan. They might find it too risky. However, if you are looking for a property loan, you can get it even with bad credit. For instance, you can choose a hard money loan lender who accepts bad credit. This lender will refuse to lend you money if you have no proof of a stable monthly income or a cash reserve you can use to repay your loan. They might also refuse to lend you money if you lack the deposit they want or if you lack considerable home equity. Away from bad credit loans for real estate investors, typical personal loan lenders will hardly give you more than $2000.
Tips on mending your bad credit
There is no doubt that getting money loans Cedar Rapids, IA, is possible even if you have bad credit. However, you don’t have to borrow money this way all the time. With a better credit rating, you can get lower interest rates, more loan amounts, extended repayment periods, and other attractive terms. To mend your low credit score, do the following simple things:
• Pay your first bad credit loan on time each month
• Borrow cash only when it is inevitable
• Don’t create any more debt, if possible. Pay your bills on time
• Keep on borrowing and paying your loans promptly. A record like this will help improve your low credit score very soon.
You can borrow money even if your credit score is below 579. It will be hard to find a lender that will immediately understand you, but you should not give up. When the type of loan you need is a real estate loan, you can call BridgeWell Capital. This company is America’s best real estate investor’s lender. Its service is efficient, trustworthy, and flexible concerning loan terms.