How to get a loan even if your credit reputation is messy?

credit historyAre you starting a new business or expanding the current line of business? Are you a start-up? Is your credit history making you drop your plans? Well, a bad credit score can play a prick and burst your bubble of the dream but nothing is in this world that can’t be fixed. A bad credit score indicates that either you have done late payments or have been insolvent or there were complaints against you for not repaying debts. In this situation getting a secured loan for a business is not easy and if you are not going to borrow from your family and friends, then what are the options left? Bad credit is not the end of the road rather now it’s time to take the road less travelled which includes options like:

  • Take a loan on your Life Insurance: It is a blessing in disguise but only for those who have a life insurance. The insurer can easily get a loan against his insurance and the best part is he need not pay a fixed amount of EMI’s every month. Also, the rate of interest on which you get a loan is way less plus the flexibility of loan repayment.
  • Opt for Line of Credit: It is relatively less used option but the one that can meet your current expenses and help in starting the business. Here, the banker sets a credit limit for the account holder and he can take a loan from the bank up to this limit. The best part is one can avail short terms loans from different banks by using this option provided you have a bank account in more than one bank. But, it is important to understand that one cannot expect to incur fixed expenses like getting a land or fixed asset through LIC.
  • Quick Loan Direct: An easy and online way of getting a quick loan. It is far better than a conservative way of getting a loan approved and can apply, also you may get great deals through which you may get relaxation on interest or processing charges. So, bid adieu to paperwork and get ready to apply online for contingent situations.
  • Credit Union at rescue: These are the unions that are working on a non-profit basis and extend the loan on much lower interest rate and flexible conditions. They are tremendously working on various projects like supporting women entrepreneurs, ethnic tribes and backward classes; so that they also get a chance to make their dreams come true.
  • An unsecured Loan is also an option: People prefer secured loans but if you need a large amount of loan and traditional banking industry is not the option then unsecured loans are your last option. Yes, the interest rate may be high but terms of conditions and approval process are not as stringent like secured loans. So one should research and study the terms and avail unsecured loan if there is no other option.

To conclude, we all go through the phase where our credit reputation is not promising. But in such situations, don’t quit your dreams or postpone your plans rather act smart and explore other options of getting the loan. Also, big business houses opt for secured and unsecured loans both for their business, so don’t be disappointed.



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