Lending options for businesses are pretty clear and straightforward. Not so with personal loans. There are many business people and entrepreneurs who have no problem finding money for business purposes, but find themselves greatly limited in their personal lives. On the one hand, some of these people are dealing with the consequences of unstable personal finances. But in most cases, they simply don’t know all of the options available for them.
These day’s it’s possible to get a loan pretty much whoever you are. We’ll go over some of the common scenarios below and help you find the best option for your situation.
For People With Good Credit. For most people like this, the world is your oyster. Many different lending institutions will be more than happy to give you money. On the other hand, if you do not have a good debt-to-income ratio, you may find your borrowed money dreams grinding to a halt. If you are in this situation, your credit is salvageable. Consider how much debt you have relative to your income (and pay off what you can), how many credit cards you have, how much of each card’s credit limit you use, and your credit score. If you improve these measures, your credit will rise and it will be easier to get a loan.
For People With Bad Credit. People with bad credit have a longer road before they are able to have good borrowing options, but this is by no means the end of the road. Start by taking a look at all of the factors we’ve mentioned above and work on improving them in your personal life. Even a couple of months of effort should cause your credit score to rise significantly, especially if your debt is not particularly high. Even if you can’t improve your credit beyond a certain point, online lenders offer you lots of opportunities to get money, as long as you are able to handle the terms.
People With Horrible or No Credit. If your credit is in the toilet, or completely nonexistent, you’ve still got opportunities available to you. Some people find themselves in this situation after bankruptcy, or other difficult events. Auto equity loans are a great option, taking equity you have in your car as leverage, and getting you a lump sum for your needs. Other options include Peer to peer lending, usually facilitated by internet brokers, which allows you to borrow money from real live people. The terms are easy to understand, and it can be comforting that you owe money to a person, not some faceless corporate giant.
This by no means exhausts the borrowing opportunities available to people in all kinds of situations. For people with great credit and sufficient income, the opportunities are endless, but even for people with lesser qualifications, there are plenty of options. Loans available through retailers and dealers, loans leveraged by your paycheck, and loans made available by small online lending companies - these will get you far in the search for the money you need.