Poor Credit Loan in Alabama

5 Top Tips to Easily Qualify

The scoring model for credit lies between 300 and 850. When applying for a loan, most loan companies consider anything below 600 bad credit.

No one sets out to destroy their own credit. But sometimes situations happen that are out of our control. These mishaps affect our credit in adverse ways.

A low credit score has no reflection on you as a person. And believe it or not, you can still get a loan with bad credit. Today, poor credit lenders look beyond scores to assist with your financial needs.

If you're looking to qualify for a bad credit loan, continue reading. Discover here the 5 top tips to qualify for a bad credit loan in Alabama.

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1. A Bad Credit Loan Sometimes Requires a Cosigner

If you have an unreliable credit score, try enlisting the help of someone with a high score. Get a cosigner.

A cosigner is someone who joins a loan with you and agrees to assume the debt if you can't make the payments. Lenders use their credit score to qualify you for the loan.

This does not relieve you from the debt if you go south on the payments. It means two people are now financially responsible for the loan.

Look for lenders who accept cosigner loans. And, make sure they report your positive payment history to the credit bureau. This helps you establish and rebuild credit.

2. Quick Fix Your Credit

If you're not in dire need of a loan and can spare 60-90 days to get an approval, fix your credit.

Rebuilding your credit is a solid solution to securing a loan. Sometimes even the slightest improvement can raise your score and qualify you for a loan.

Pull your credit reports and review them for accuracy. Look for erroneous and outdated debt. Dispute discrepancies and request removal of out-of-date information.

It takes 30-90 days for a dispute to resolve and the credit bureaus to remove negative information.

In some cases, the process gets expedited and your score changes much sooner.

3. Shop Around

Emergencies arise and we can't wait on a cosigner or a dispute. When this happens you can shop around for second chance lenders.

These lenders look past low credit scores and offer assistance. Most of the time, your job, bank account, and a steady paycheck can secure you a loan.

Payday Loan lenders look for you to receive your check through direct deposit. This proves steady employment and income.

You may be able to receive between $300 to $3000, depending on the lender. The interest rate may be higher.

And, the lender will debit loan payments from your checking account on your pay dates.

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4. Paycheck Advance

A paycheck advance is an advance on your pay from your employer. This is an act of benevolence on the part of your employer, as they are not required by law to advance you anything.

Credit history is not a requirement for these types of loans. It's a matter of visiting your HR department and filling out the necessary paperwork.

The payroll department will set up an easy payback plan. They'll deduct a certain amount from each paycheck until you pay the advance back in full.

5. Get a Buddy Loan

With mobile funding apps like Cash App (Square Cash), Venmo, and Paypal, peer-to-peer lending is the new resort for loans.

Most of these loans are from trusted guarantors like family, friends, and close buddies.

There's no credit score requirement, and the funds are easy to track within each app. With buddy loans, you can get the cash you need while you work on repairing your credit score.

Qualify for a Loan

Securing a bad credit loan in Alabama is not unattainable. It's a matter of research and doing the work required to repair your credit.

These tips are not exhaustive, but they are great steps towards getting the funds you need. Check out more ways to get personal loans for people with poor credit.

Who to Contact in Alabama with Complaints or Concerns

Finance Companies, Mortgage Brokers, Mortgage Loan Originators, Pawn Shops/Payday Lenders/Other: 

State of Alabama
State Banking Department
ATTN: Consumer Lending
P.O. Box 4600
Montgomery, AL 36103-4600
Consumer.Lending@banking.alabama.gov 
(334)242-3452
http://www.banking.alabama.gov/education.aspx