How to Get A Personal Loan in Texas with Bad Credit?

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Everyone needs a personal loan in Texas at one time or another. Emergencies arise, and projects become feasible, or someone in the family becomes ill and needs financial support. Sometimes family members or close friends need bail money.  It happens to the best of us. However, it can be challenging getting the funds you need when you have bad credit.

Bad Credit Personal Loan in Texas

Many lenders are scared to deal with people who have bad credit because they see them as a high risk. You can find a way to get the funds you need even if some lenders turn your down.

The following are some tips you can use to get a personal loan in Texas with bad credit.

1. Get a Cosigner

One thing you can do if you want to get a personal loan in Texas is to ask a cosigner to help you. The cosigner may be a family member, friend, spouse, or business associate. You might be able to convince the lender to allow you to borrow the money if a cosigner signs a contract with you. The cosigner’s signature on the document makes that person liable to repay the loan if you fail to do so. Not just any person can sign as a cosigner, however. This individual has to have a high enough credit score and a long enough history of timely payments for the creditor to accept his or her co-signature.

Once you get approved for a personal loan in Texas, you can prove your trustworthiness with each payment. You might not have to have a cosigner the next time you need a personal loan if you show them that you can handle yourself in this situation. Many debtors start off using cosigners, and then they move on to get personal loans, credit cards, auto loans, and other financial products on their own. The cosigner situation is not a permanent one. It’s only a temporary solution to get you the funds that you require immediately.

2. Boost Your Score Before Applying

You can get a personal loan in Texas if you raise your credit score a little bit before you apply. You can do a few things to give yourself a quick boost, and that quick boost might put you in an entirely different category of creditworthiness. The following are some things you can do to give your credit score a quick jolt.

2.1 Pay Your Smallest Account Off

One quick way to give your credit score a big jump is to pay at least one of your accounts off. If you can just pay the account with the smallest balance, you can give your credit score a huge push. It may take about 30 days to show up on your credit report, but it will be worth it if you want to get a personal loan in Texas. It may give you the boost you need to get approval, and you might get a much better interest rate, as well.

2.2 Dispute Something on Your Report

Another little trick you can use to get your credit score up a little bit is to order your credit report ASAP. Look it over for accounts that you don’t remember having. If you see something that you do not believe you owe, you can file a dispute and tell the credit bureau that you do not believe the account is yours. Once you file the dispute, the credit bureau will have 30 days to investigate the matter. They have to decide by the end of those 30 days. If they decide that the account is invalid, they will remove it and notify you of such removal. Your credit score will jump significantly, and you might be able to qualify for a personal loan in Texas based on the new score.

2.3 Fix the Errors on Your Credit Report

Errors are another element that can make a lender hesitate on giving you a personal loan for your poor credit. You need to ensure that your address information, job history, phone number, and name are correct. Contact the creditors or the credit bureaus to correct all the errors immediately. You may see a rise in your score after you do that. At the very least, your profile will appear more trustworthy, and the lender may be more willing to take a chance on you.

2.4 Settle Negative Items

You should also look over your credit report and search for negative items. Lenders see negative accounts as red flags. Therefore, you should try everything in your power to settle anything that has gone into collections on your account. You might be able to work out a debt settlement where the creditor will take a little less than you owe in exchange to notate the account as paid. Your score will improve if you can get that account marked off of your report or at least marked as paid.

2.5 Keep Your Utilization Down

Do not use any of your credit while you are trying to get a personal loan in Texas. You must keep your utilization down under 30 percent if you want your report to reflect positively to prospective lenders. You can do that by not using any additional credit and making some small payments on the accounts that you already have. That will work out well for you if you let it.

Those tips may help you to get in the position for approval on a personal loan in Texas.

3. Use Collateral

If you’re having trouble getting approved for a personal loan in Texas, you may want to consider using collateral. Many companies will take collateral from people who have a poor credit score or a negative history with lenders.

You can use a variety of items that you own as collateral for a personal loan in Texas. One of the most popular items that people use for this type of loan is the title of their vehicle. Some people use their home deeds, as well. Lenders use other items as collateral, too. Stocks, CDs, and precious metals are some other assets that you may be able to give to a provider for a personal loan in Texas. Your collateral will not be in jeopardy unless you fail to repay the cash advance. The lender will put a temporary lien on your property for the duration of the loan. Then, it will release the lien so that you are once again the only owner after you have settled your debt.

The good part about using collateral to get a personal loan is that you can gain clout with the lender when you’re finished paying them back. They may be willing to provide you with additional loans in the future if you make good on the first one. The next time, you might not have to supply them with collateral or a cosigner or anything else. They will trust you to repay the advance, and they might even make you eligible for a higher loan amount.

4. Get on a Debt Management Program

A debt management program might be just what you need to get your financial profile healthy again. If you don’t know what that is, we’ll explain it. A debt management plan is a debt recovery program that involves the work of credit counselors. These credit counselors will give you a free initial consultation so that they can look at your credit profile and talk to you about the products and services you desire. Once you decide that you want to use their services, they will start reshaping your profile.

A debt management plan is a consolidation of sorts. It doesn’t involve a personal loan, however. The credit counselor contacts your lenders to see if they will agree to take the balances down on some of your accounts. The counselor will do everything in his or her power to see to it that you owe as little money as possible. Once you have a fair ending balance, the credit counselor will develop a repayment plan for you. You will pay the counselor one monthly lump sum payment, and the counselor will use the funds to pay all of your creditors. Debt management plans typically last five years. However, you might see results in as little as one month.

5. Find Lenders Who Don’t Use Credit Scores

You can find a lot of lenders that will offer a personal loan in Texas without considering your credit score. It all depends on your needs and how much interest you are willing to pay. The following are three types of loans that you can get without having a good credit score. Sift through their descriptions and decide if you can use one of those.

5.1 Payday Lenders

Payday lenders are one type of short-term lender that can offer you a personal loan in Texas. A payday lender specializes in giving loans to hardworking people who need help. They do not base their decisions on credit scores. Instead, they use their clients’ paychecks as assurance that they will repay their advance.

To qualify for a payday personal loan in Texas, you must be 18 years of age because you have to sign a contract. Furthermore, you must have a Texas bank account, and it must be in good standing. “Good standing” means that you do not have a negative balance in the account, and you have not had such a balance for at least 90 days. You should also earn at least $1,500 a month and have your job for at least three months before you apply.

The payday lender will take its payments from your very next paycheck. It may not be the right loan for you if you’re looking for a longer term. However, it could be the perfect financial product for you if you’re in-between checks, and you need funds just to get by.

When choosing a payday lender, you have to make sure that you find a trustworthy provider who offers low interest and excellent customer service. Read the reviews to see what other consumers have to say about the company. Visit the website and see if the lender is transparent about its fees and so forth. If so, then you can go ahead and process your application. Alternatively, you can seek the guidance of a reliable financial company that has connections with reputable lenders. Our company is such a provider, and we can make sure that you’re headed in the right direction.

5.2 Installment Lenders

Installment loans have a lot of the same requirements that payday loans have. They are basically the same as payday loans except the lender gives the borrower much more time to repay the advance. Some installment loans have a three-month lifespan. Other installment products can have a repayment life that’s longer than 12 months. It all depends on which provider you go to for assistance. That’s why it’s important to have someone help you who knows all the lenders and how they work. We can definitely help you find a reliable company that will give you fast processing and a lot of time to get yourself back on track.

5.3 Title Lenders

You might be better off getting a personal loan in Texas from a title lender. Title lenders work with people who own cars. An applicant must be the owner of a vehicle, and he or she must have the title of the vehicle in his or her hands. This is necessary because title lenders use the title to the vehicle as collateral to make sure that the borrower will repay the funds. They place a lien on the title until the borrower pays off the advance. Then they release it within 30 days after the borrower meets his or her obligation.

The good part about title loans is that the borrower does not have to physically give up the car. If you get a title loan, you can continue to drive your car every day as usual. The title lender will only interfere with your rights as a car owner if you fail to repay the advance, and you fail to communicate with them and make arrangements.

The amount of money that you can get from a title lender will depend solely on the value of your car. The lender will assess the vehicle before it gives you an offer. They will base the assessment largely on the year, make, and model of the car. They will also conduct a physical inspection of the vehicle and check for mechanical and cosmetic damage and defects. And they will deduct the appropriate amount from the loan offer, and then they will offer you a percentage of that amount for your loan. The usual percentage is about 70 percent of the value of the car. You could get a large sum of money if you have a newer car with little to no damage to it.

Those are just a few of special loans you can get if you need a personal loan in Texas right now. You may have to pay back the funds in a brief amount of time, however. Therefore, you have to make sure that you are comfortable coming up with the money in as few as 14 days.

Contact Us to Find a Lender

We would love to help you find a bad credit personal loan. We are not a lender, but we network with some of the most prominent lenders in Texas. Our main goal is to link you up with lenders who will be willing to take a chance on you despite what your credit score might be. We can connect you with lenders that can give you personal loans, auto loans, mortgages, and more. We can find you lenders who will give you long-term loans, short-term loans, or installment loans. Also, we can assist you by connecting you with credit counselors and information so that you can improve your credit. We have a wide range of tools and services that we can offer you, and we’re here to serve your needs.

Just give a call and let us know what we can do for you. We’ll get some of our best agents on the case, and they won’t stop until you are 100 percent satisfied. You can reach us at any time to get the help you need and deserve.

In Conclusion

Finally, you can get a personal loan in Texas by searching for “bad credit personal loan lenders.” Bad credit lenders are a special class of lenders who purposely deal with people with damaged credit. They will still give you a personal loan in Texas if you have a bad history with lenders. However, there may be a catch to it such as an extremely high interest rate or additional fees that you don’t necessarily want to pay. It’s best to have a financial company work for you and find lenders that are suitable to help you. These lenders will have your best interests in their hearts, and they will truly want to give you the funds you need quickly.

Installment Loans for Bad Credit: Available Options

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Whether you know it or not, credit controls most things for you. Your credit dictates whether or not you can qualify for a loan, mortgage, or a car. It can also impact whether or not you can get insurance and sometimes, even jobs. When you have bad credit, you probably begin to feel like you do not have any options when you need money.  You simply have to have the right information and know where to look. Continue reading to find out more information.

Top Installment Loans For Bad Credit

When you are looking for installment loans for bad credit, there are some lenders that you should consider first. They may be more friendly bad credit personal loan lenders and willing to approve you.

What Are Installment Loans?

An installment loan is the same thing as a personal loan. The two terms are often used interchangeably. You borrow the money from an installment loan is a specific amount of money that you borrow all at once. You make a promise to repay the loan plus interest by making a certain number of payments. These payments are called installments, hence the name of the loan. The interest on the loan can be fixed or variable If it is fixed, then it remains the same for the life of the repayment period. If it is variable, it can change. If the interest rate is fixed, then your payments also remain fixed. If the interest rate is variable, then your monthly installment amount may change.

Installment loans may have fees that come off of the amount of money you receive. There are installment loans for bad credit available to you. Installment loans can be secured or unsecured. Lenders of these types of loans can be traditional lenders such as banks or credit unions. Lenders can also be online lenders.

What Is Bad Credit?

You may be thinking, “I think I have bad credit, but how do I know for sure?” Well, if you think you do, there must be some reason why you think that. Have you been turned down for credit in the past? Has someone told you that you have bad credit? The best way to find out is to pull your credit report. Your credit score is prominently displayed on your credit report.

I am going to spend a few moments talking about credit scores. If you are looking for installment loans for bad credit, it is important to understand what bad credit is. Bad credit usually falls between 580 and 669. Anything below 579 is considered poor credit. A credit score ranges from 300 to 850. The higher the number is then the better your credit score is. The better your credit score, then the better interest rate you can get on any type of installment loan. It takes time to build up good credit, but only a few missed or late payments and your credit score begin to decline. That is not the only thing that causes your score to go down. If you have too much revolving credit, your credit score goes down. Revolving credit typically refers to credit cards. They are considered revolving credit.

When you pay off what you owe, your available balance goes up. If your debt to income ratio is too high, then your credit score also goes down. Your debt to income ratio is the amount of debt you have compared to your income.

Best Lenders for Bad Credit

You may feel like you do not have anywhere to turn because you do not think you can get approved. Have no fear, there are lenders who have installment loans for bad credit available to you.

OneMain Financial

OneMain financia logoThis is a lender that has different kinds of loans, including options that are secured and unsecured. Their loan amounts vary from $1,000 to as high as $20,000. The better your credit score then they are more willing to lend you money. They prefer to give higher personal loan amounts to those with better credit. They offer interest rates that range from 18 percent to 35.99 percent, all based on credit. They offer repayment terms of 2, 3, 4 or 5 years, so they are incredibly flexible. You can visit one of their many branch offices, or you can handle all of your business online.

Avant

Avent LoansAvant is a great choice for those with bad credit. They will give loans to those who have credit scores as low as 580. They will even approve your loan if you have a low income because they do not have income requirements. Their loans range from $2,000 up to as much as $35,000. Their loan terms are flexible at 2, 3, 4 or 5 years. They have interest rates that range from 9.95 percent to 35.99 percent. They do have an origination fee of as much as 4.75 percent of your loan amount.

There are a few more lenders that you should consider if you are interested in installment loans for bad credit. Keep in mind that there are so many lenders available to you, so you do not have to accept just any offer. Make sure that you pick the offer that is right for you and one that you can afford to pay back. While you are researching your options, be sure to consider these lenders:

Upstart

Upstart LoansIf you have a low credit score because you do not have much credit history, this is a great option for you. They are willing to loan money to those who have a credit score of 580. They do require that you have an income of at least $12,000 per year. You can borrow from $1,000 all the way up to $50,000 with terms of 3 and 5 years. The origination fee can be anywhere from 1 to 6 percent of the total loan amount. They do require you to have a debt to income ratio of less than 45 percent.

LendingClub

Another great lender for those with bad credit. LendingClub is a peer to peer lending facility. This means that individuals are loaning money to you through this site. You fill out the application and they send out your information and loan request to those they think will be willing to lend you money. The loan amounts can vary from $1,000 up to $40,000, with loan terms of three or five years. Lending Club has a high origination fee that can be anywhere between 1 to 6 percent of your loan amount. Their interest rates range from 6.95 percent to 35.89 percent. They do require that you have a credit score of at least 600. They want you to have a credit history of at least 3 years and your debt to income ratio to be under 40 percent.

Will An Installment Loan Make My Credit Worse?

The short answer is it depends completely on you. That is good and bad. It is good if you are able to begin to be responsible with your credit and make all of your payments on time. Then, slowly over time, your credit score will increase. It is bad if you cannot afford to repay the loan, or if you are not able to be responsible with your payments. There are other ways an installment loan can impact your credit score. If you do not have a long credit history, you could take out a loan to help build up your credit score.

However, you must remember to make all the payments on time. This shows that you can be responsible with your credit. Taking on an installment loan helps you to diversify the debt you have. Lenders like to see that you have a varied credit history where you have used various types of credit in a responsible manner.

Now, I want to talk about how installment loans for bad credit can hurt you. Anytime you apply for any type of credit, it causes a hard hit to your credit report. Too many of these inquiries in too short a time period are negative for your credit score. When you take on a loan, it increases the amount of debt that you have. Even if it is your only debt, it still increases your debt to income ratio. These are just some points of which you should be mindful when you take on an installment loan.

Can I Find A Loan Online?

Yes, the great news is you can find installment loans for bad credit online. There once was a time where the only online lenders were for those with bad credit. Times have changed and online lenders offer loans to those in all credit score ranges. The good thing about online lenders is you can shop around from the comfort of your home. There are many bad credit personal loan options available to you, so you do not have to accept the first loan offer you receive.

There are some major benefits to applying for a loan online. The first being that you do not actually have to talk to a human being to get your loan processed. I do not know about you, but that sounds like perfection to me. I just do not want to talk to people. I prefer to chat and text than to talk, so an online option is amazing to me. The application process is streamlined online, so it is fast and easy. I am not sure why traditional banks have not done the same thing with their applications, but they have not. Once you apply online, you typically have a response in 24 hours or less. Then, the money is usually in your bank account in 24 hours after that.

The process is simple and painless. When you apply for a loan online, you can upload any documents the lender requires right on the same website where you applied for the loan. The process could not be any easier.

Debt Consolidation Loans

Another type of installment loans for bad credit that you may want to consider is a debt consolidation loan. If your credit is bad because you have too much debt and you just do not know how to pay it off, this type of loan might be right for you. This type of loan allows you to pay off high-interest debts by combining everything into one debt. This includes debt such as medical expenses, credit cards, personal loans, and any other debt.

You determine the amount you owe to all of your creditors and you get a loan in that amount. Sometimes, the lender will issue checks directly to your creditors so you do not have to take that step. Not all lenders do that, so you may have to send them all separate checks. Hopefully, you can get an interest rate that is lower than what you are paying for all your other bills.

Be informed about dangers before you take a debt consolidation loan

Before you consider a debt consolidation loan, you must be aware of the dangers. This loan does not change the amount of money you owe. You still owe the same amount, you just owe it to one lender instead of several. If all of your debts total $15,000 and you take out a $15,000 loan, after you pay off your original debts, you still are paying back $15,000. If you use debt consolidation to pay off your credit cards, but you keep the credit cards open, you may end up using them and racking up a large amount of debt all over again. There is a theory that you should keep them all open to improve your debt to income ratio, but that leaves you open to the temptation of using them. You must be aware that this can happen.

Other Loan Options

When considering installment loans for bad credit, there may be other loans that are available to you. There are payday loans and fast cash loans. Consider these options carefully because they can be a great way to get yourself into a world of trouble. These lenders give you quick access to fast money, but it comes with a hefty price. There is a limit to how much you can borrow, usually it is a small amount. You also have to pay incredibly high interest.

If you do not repay the loan on time, you have to pay heavy fees. You usually have a short window, a few weeks to a couple of months, to repay the loan. If you do not pay back the money when it is due, you have to take out a new loan to cover the first loan and the fees. You could easily find yourself in a vicious cycle. However, if you know that you absolutely will have the money to repay the loan when it is due and you do not care about the high interest, then this might be the way to get access to the money you need right away.

A Few Items To Consider

When you are interested in installment loans for bad credit, there are some details that might help you get approved. You can ask to speak with the loan officer. Your credit history shows missed and late payments, but it does not tell the story as to why. When you talk to the loan officer, you can paint a picture and explain why things happened when they did. This may help you get approved.

You should be prepared to submit the last five years of tax returns, bank statements, and pay stubs as proof of income. You can also provide proof of any alimony or child support you receive, however, you do not have to mention it at all. You should be prepared to show proof of any dividends or payments you receive. You can write down your entire employment history to show that you have always (hopefully) been gainfully employed. You could provide a list of valuable assets.

Conclusion

There is a lot of information about installment loans for bad credit in this article. Hopefully, the information was helpful and did not put you into overload. I would like you to keep in mind that just because you are looking for installment loans for bad credit, that does not mean you should limit yourself. Make sure you find the best personal loan offer you can. Most importantly, make sure that you can afford to repay the loan that you accept. If you are not able to make the monthly payments, then you should stop looking and to not sign any paperwork. A loan is only as good as your ability to repay it. Choose wisely and make smart financial decisions.

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