© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - 5 Borrowing Options for Low or No Credit Score
Posted 30th May 2023

5 Borrowing Options for Low or No Credit Score

In today’s inflationary periods, being in dire need of additional funds are inevitable. However, accessing them is no picnic since most financial companies will require borrowers to have good credit.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

5 Borrowing Options for Low or No Credit Score

In today’s inflationary periods, being in dire need of additional funds are inevitable. However, accessing them is no picnic since most financial companies will require borrowers to have good credit.

Thankfully, there are borrowing options available for those who don’t have a poor credit rating, spotty repayment history, or those who don’t have a credit score. If you’re one of these people, the following can be your lifesaver.

No-Credit-Check Loans

No-credit-check loans, such as payday, car title, and bad loans, are loans based on income and employment status rather than credit history. That also means they’re beneficial to those with bad credit or no credit history.

Apart from credit scores, borrowers don’t also have to worry about collateral since most no-credit-check loans are unsecured. They can also be used for various purposes, including big purchases, emergency funds, medical costs, debt consolidation, and many more.

Being unsecured and requiring no credit check gives lenders higher risks, so no-credit-check loans usually come with high-interest rates. Some of them can be difficult to qualify for, especially if you’re unemployed or have no income.

Some providers of no-credit-check loans may be more lenient than others. Hence, the key is researching and comparing offers to find the best deal. No credit check loans are available from many financial institutions, including banks, credit unions, and online lenders.

Co-signed Loans

Asking someone to be your co-signer helps you get approved for a loan and a lower interest rate. Both of you will share the same financial responsibility for a loan, so both of your credit scores will be assessed. If your credit score isn’t so good but your co-signer’s credit score is stellar, the probability of getting a loan is high.

To increase the chances of getting approved, make sure that your co-signer has the following:

A good credit score of 670 or above; Low debt-to-income (DTI) ratio of 35% or less; and Solid income, preferably exceeding the income needed for approval. Although asking for help from a co-signer doesn’t impact your credit, a co-signed loan helps you build your credit score. It usually happens when you repay your co-signed loan in full and on time. Timely payments add positive credit history to your credit reports, resulting in an increased credit score both for you and your co-signer.

However, since they guarantee your debt, they must pay for it and get their credit damaged if you miss a payment or default. If this happens, your relationship will also be hurt. That’s why it’s always advised to inform them and let them understand the risks and their rights of co-signing a loan—the same goes when you’ll co-sign a loan.

Credit Card Cash Advances

A credit card cash advance is one type of cash advance that allows you to use your credit card to withdraw cash, which is then added to your credit card’s balance. It’s essentially a loan against your card’s line of credit but will only be considered a credit card transaction. In other words, it won’t inherently hurt your credit score.

Among all borrowing options, it’s one of the most convenient financing options. You don’t need a credit score or process a loan application to obtain it. You only need to bring your credit card, go to the nearest ATM, and process a cash advance. Alternatively, you may also go to the physical bank of your credit card issuer and process the cash advance over the counter there.

Buy Now, Pay Later (BNPL)

As its name implies, buy now, pay later (BNPL) financing allows you to make purchases and pay for them, usually in instalments. The difference between BNPL loans and credit cards is that the former doesn’t usually don’t charge interest or fees, while the latter does.

Additionally, BNPL loans have fixed repayment schedules, which means each payment is the same, and you’ll know them upfront. In contrast, most credit card fees change from time to time since their interest is variable.

Final Thoughts

A poor or no credit score doesn’t have to stand in your way of getting any financing to cover your urgent needs. You may have to put in some more work, but all these extra steps will help you qualify for a loan and a better rate, regardless of your credit.

Categories: Finance, News


You Might Also Like
Read Full PostRead - Eye Icon
The Path to Automatic Citizenship: Exploring Different Scenarios
News
13/11/2023The Path to Automatic Citizenship: Exploring Different Scenarios

Citizenship signifies a bond, a mutual pact between an individual and a nation. Historically, it has been the culmination of a journey, often marked by years of residency, cultural assimilation, or ancestral ties. Yet, in a world rapidly evolving, the concept

Read Full PostRead - Eye Icon
New Export Guide to Help SMEs as They Plan to Grow Globally
Leadership
04/03/2015New Export Guide to Help SMEs as They Plan to Grow Globally

Small and Medium sized businesses (SMEs) are planning to increase exports by 5% in the year ahead.

Read Full PostRead - Eye Icon
Shaping the Future in the Digital Age
Legal
06/02/2024Shaping the Future in the Digital Age

For the best part of the last two decades, Liliana Bakayoko has been a vital cog in the works when it comes to assisting national and international clients with matters of law.

Read Full PostRead - Eye Icon
CEO of the Year, Virginia
Leadership
18/03/2016CEO of the Year, Virginia

The CEO of the Year, Virginia title goes to Gene Saunders of Project Lifesaver International.

Read Full PostRead - Eye Icon
Going Above and Beyond for Clients
Leadership
07/05/2019Going Above and Beyond for Clients

The Law Offices of Anthony Carbone was founded by Jersey City attorney Anthony Carbone. Following his success as being selected as 2018’s Best Personal Injury Law Firm - New Jersey by Acquisition Intl., we profiled the firm and caught up with Anthony who pro

Read Full PostRead - Eye Icon
10 Tasks Your Small Business Should Be Outsourcing
Leadership
12/01/202210 Tasks Your Small Business Should Be Outsourcing

Outsourcing has become the norm as businesses of all sizes look to save money. Handing off rote or otherwise complicated tasks to an agency while your team handles the bread and butter work can be a boon for your productivity, but you may not be leveraging the

Read Full PostRead - Eye Icon
Building upon Success
Innovation
20/06/2017Building upon Success

Most Outstanding for Restoration Architecture 2017 award winner NFA architects is an established and experienced practice formed of a senior director with dedicated architects, designers and technologists based in Kent. We interviewed the firm’s Nick Farnell

Read Full PostRead - Eye Icon
When to Choose a Virtual Office Over a Physical Office Space
News
19/10/2023When to Choose a Virtual Office Over a Physical Office Space

In recent years, virtual offices have gained popularity for their ability to offer businesses a prime location business address without a physical office space. For example, today, you can be a business owner in the US with a presence in Tokyo through the use

Read Full PostRead - Eye Icon
CEO of the Year – Belgium
Innovation
06/05/2016CEO of the Year – Belgium

Kollector has developed an information system which provides real time statistics about radio broadcasting and online distribution, worldwide.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow