There was a time when the only option for someone looking to secure a loan was to visit their bank branch and speak to their loan officer. The 3 most common places to apply to are a traditional bank, an independent lending company and an online lender. The question is, from which of the 3 is approval despite poor credit scores most likely. Getting the personal loan is also dependent on aspects like affordability.
Applying For A Bank Loan
Traditional lending institutions, like banks, are known to have very stringent lending policies. This makes getting a personal loan with bad credit quite difficult.
Basic criteria that applicants must meet include proof of employment, sufficient income, and confirmation that repayments are comfortably affordable. This ratio states that no more than 40% of excess income can be spent on repaying the personal loan.
Applying To A Lending Company Loan
While banks have strict policies that loan officers rarely bend, independent lending companies make their profits by listening to bad credit borrowers and finding the best loan package for them. With that in mind, they are much more likely to grant a personal loan with bad credit.
In order to earn approval despite poor credit scores, it is necessary to accept a higher interest rate. Applying For A Loan Online
This is fast becoming the most popular option, with online lenders often offering the lowest interest rates and the best repayment terms around. Finding the right loan deal is also easier online, especially with the development of comparison sites that can highlight deals that best fit specific conditions and budgets.
With approval despite poor credit scores very likely, it is also a wise choice when seeking a personal loan without the backing of an excellent credit record. But remember to check out the reputation of any online lender before committing to any loan deal.