Reputable banks and financial institutions will definitely check your credit scores when you apply for a long-term loan. If they find that you have a bad credit score, they may refuse to approve your loan. The banks and the other financial institutions generally view people with bad credit scores as high-risk customers, who may default and leave them to take the loss. While the appropriate way to go about applying for a long term loan is building up your credit record, you may consider the following alternatives if you are in immediate need of funds, and cannot afford to wait to build up your credit score. There are companies such as Cashco Financial that offer long term loan products that are easy to qualify for and actually rebuild your credit score fast. You can learn more at their website www.cashcofinancial.com. And be sure to look at their flex loan page since that seems to be a new product designed to get you money now and rebuild your credit score quickly and easily.
Opt for a home equity line of credit
Having equity in your property can get you a low-interest line of credit that is tax-deductible. This is a viable option for you even if you have a bad credit score. However, you should pursue this path only if you have a steady income, and you are absolutely sure that you will be able to make the monthly payments, and close the loan on time, otherwise you will be putting your property in jeopardy. Tapping into your home equity is a risky move, and should be considered only if you are desperate for a long-term loan. You should carefully consider this option to avoid losing your home and it having long-term effects for years. To learn more, visit here: http://aaacreditguide.
Loan from credit unions
Credit unions are owned by their members. They all have something in common, such as living in the same area or working in the same industry. Credit unions, basically, are non-profit organizations that distribute the earnings to its members in the form of lower fees. In Canada, where more than a third of its population has membership in at least one credit union, your first stop for getting a long-term loan should be at a credit union. The interest rates are lower, and they offer flexible loan terms. Also, the credit unions consider loan applications from those people who have a bad credit score as well.
Peer-to-peer lending (P2P lending)
The practice of lending money to businesses or individuals via online services is termed as P2P lending. The services match the lenders directly with the borrowers. Since the P2P lending companies run their entire operations online, they can afford to provide the services cheaply, compared to that of a traditional financial institution. This means higher returns for the lenders and lower interest rates for the borrowers. How P2P lending works is that the borrowers post a loan listing which includes the amount they require, and the reason why they want it. The lenders or the investors will review the loan listings and select one that meets their criteria. Now, your credit score is a factor in P2P lending, the lenders will check it. The catch is if a lender finds merit in the reason that you need the loan for, he/she will give you the loan.
Ask your family/friends for a loan
You can ask your friends or family for a long-term loan. As long as you consider it as a business transaction, they most probably will have no qualms in lending you the money. You will have to properly document and legally record it. This will avoid any future confusion that may arise with respect to payment terms or interest rate or what would happen if you fail to repay the debt, and so on.
Find a co-signer
If you know someone who knows you personally, who trusts you and your ability to repay the money back, then you can ask him/her to co-sign a loan with you, as long as that person has a good credit score. Make sure that you make the monthly payments on time, and that you close the loan on time, otherwise, the lending company will ask your co-signer to pay the amount.
Honestly, a flex loan might be a good option for you
You may approach Cashco Financial for a long-term loan. The company offers their own product called flex loans. You may borrow up to $5000, for a period of 3 years. All credit is considered. The company's friendly executives will work out a suitable plan for you, even if you have a bad credit score. For more information, visit www.cashcofinancial.com/flex-loans/.