4 Ways Millennials are Bypassing Bad Credit Scores to Borrow Money

beach-455752_640It is not uncommon for younger individuals to run into problems with their credit. When you are young, it can be easy to make impulsive financial decisions that can negatively affect you down the road. Student loans and other expensive payments can bog you down in your early adult years when you are still in search of a substantial income. However, there are ways in which Millennials are bypassing their bad credit score and borrowing money. Understanding these workarounds can help Millennials get the money they need and repair their credit by staying on top of their new loans.

Title loans

While title loans are a very risky way to borrow money, it is an effective way of bypassing your bad credit during the process of getting a loan. You should only consider a title loan when you are sure that you will be able to pay back your loan. A title loan is attached to a car that you own. You will be able to put up your car’s title as collateral for your loan. Companies that issue title loans will not look into your credit score. This is a great way to get money quickly when you are in a bind. However, make sure that you are able to pay back your loan in order to ensure you will not lose your car in the process.

Apply for a loan from a credit union

Credit Unions are a unique financial institution due to their reduced size and vested interests. Credit unions are owned by their customers and not shareholders. Credit Unions have special savings that get passed down to their customers. This may give you the type of loan that you are looking for. With bad credit, you are normally going to be subjected to very high-interest rates. Your rates will be much lower when working with a credit union. Credit unions many times can help to pair you with a credit restoration firm that will be able to get your credit back on track. This will help you in any future lending situations that may come your way.

Asking your friends or family to co-sign on your loan

Asking someone to cosign on your loan can be a trick and sometimes embarrassing thing to do. However, your friends and family will be surprisingly willing to help you if you have a great plan ahead of you for paying back your loan. Before you ask someone to cosign on a loan for you, it is important to have a very detailed and solid plan for paying back your loan. This will be something that your co-signer will be very interested in seeing. For example, if your income is going to be drastically higher once you graduate college and get your first job, let your co-signer know. This information will make them much more likely to help you in your quest to borrow money. You should only ask your most responsible friends and family members to co-sign for your loans as well. This will help you ensure that you will be asking for a co-signer with an acceptable credit score.

Find lending options online

In our digital age, there are many different lending options available online. Searching for these different online lending options can give you hope that you may actually be able to get a loan with your bad credit. Many online lenders focus on clients that have bad credit scores. Peer to peer lending is another great online lending option. These peer to peer lenders will often look favorably on the reason for the borrowed money and not the credentials of the lender. Online loans can be an amazing option for rebuilding credit scores as well. When you are looking for the best possible rates, there are many options online you can compare. Take your time when you are searching for lending options online. Without having to go into credit unions and lending offices, you can spend hours searching for the perfect loan option right from the comfort of your own home.

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