As if having to study for a course is not enough for students, paying for their tuition is another challenge they face. The option of a low interest personal loan is often welcome for many students. However, you would encounter obstacles to getting a loan if you have bad credit or no credit.
Fortunately, it is still possible to get a student loan if you have bad or no credit. You can have several financial options to be able to pay your college fees, buy a car or take care of a financial problem. Scholarships and grants are among the viable alternatives you have, but these depend on your eligibility and, at times, luck. Many other students are competing to get these kinds of funding and your poor credit rating is a deterrent, which minimizes your chances. The remaining option to get the money you need is taking a loan. Here are the kinds of loan options you may use to take care of your financial issues:
Bad Credit Auto Loans
Buying a car for a student can be a daunting task, as many students do not even know the basics on how to get a car loan or only have limited knowledge of how the process works. The best option would be to get a loan to pay for the car. Having bad or no credit may disqualify you from getting a loan from a conventional financial lending institution, such as a bank, or from the government. Some lenders can not only approve you for financing if you have bad or no credit but also grant first time car buyer loans that help you build credit. If your monthly repayment history is positive, you will build a good credit history.
Some of the best car title loan companies can give you a cash loan if you present your vehicle title instead of considering your credit history. The amount you get will depend on the market value of the asset and your ability to repay weighed against the amount you would like to borrow. Most institutions put a limit for borrowing against your asset. For example, a company may lend you up to 80% of your car’s value.
Personal Loans for Bad Credit
If conventional lending institutions decline to cater to your financial needs because you have little, bad or no credit, you should not despair. Some lenders can help you when you need instant cash regardless of your credit history. These loans are for struggling students who really need personal loans but have a tainted credit history. You can get fast, convenient loans from online lenders who do not work in the conventional way. Today, you can even make the application online and get an offer within minutes. The approved loan can be transferred into your checking account within a few hours. What they need from you is to prove that you are a legal citizen and 18 years or older. You may also need to provide your email address, bank account and phone number.
Getting an affordable low interest personal loan as a student who has bad or no credit is almost impossible if you approach a conventional lending institution such as a bank. However, you can find alternative lenders who will give you the cash without much hassle. Just ensure you can prove your ability to pay the loan and you will become instantly eligible.