Personal loans in California always have a certain amount of criteria that come with them no matter how big or small they are. But usually, the biggest obstacle people run into when trying to get a personal loan or line of credit is the good credit score that usually comes with it. Credit history and FICO scores are important, especially for unsecured personal loans because the lender wants to know that the borrower is reliable enough to pay back loans. Unfortunately, for borrowers who may have gone through or are currently going through rough financial times, their credit scores are likely not good enough to qualify for personal loans offered by banks. There are still options out there for you if you don't have good credit such as installment loans in California or other personal loans where credit isn't as important. But they're also ways to improve your chances of getting a loan.
Installment Loan Lenders Usually Use Alternative Credit Checks
Instead of using a system based mostly on the FICO score or ratings given to you by the three major credit bureaus, many installment loans in California with bad credit have other ways of evaluating potential borrowers. What this means is that they will look beyond some of your past minor financial details that may have knocked your credit score lower than it should be. The lender usually wants to make sure you have shown the ability to pay off debt or other bills in the past, and even if your financial situation has improved any since your score took a hit, you can usually still get accepted for an installment loan. Be warned if you find an online lender who promises a loan with zero credit checks that it could be a scam.
Report All Personal Income To The Installment Loan Lender
Since installment loans in California with bad credit aren't like most other personal loans due to not being as large in amounts you can borrow, or requiring any collateral, your income is usually a bigger factor for being approved than credit. If your weekly or monthly income is well in the range needed to afford installment loan payments, your credit is even less of a consideration. While employment income is the main income you need to verify, if you have supplemental income from alternative jobs or hobbies, you should provide proof of that as well. Lenders will usually want to see multiple documents such as pay stubs, bank statements, tax forms and others to make sure you have valid income sources.You Can Remove Errors From Your Credit Report
Sometimes details that affect your credit history and ability to get a personal loan are errors in your credit report history. It is not uncommon to see charges or activity in your name that isn't quite accurate and needs to be removed. What you can do is go to www.AnnualCreditReport.com and order a free copy of your report once each year and look it over to make sure it's correct. If you see errors, you can usually dispute them with the credit bureaus, creditors or other parties and have them removed, though in some cases you may need outside help. But this is one sure way to better your chances of loan approval.The bottom line is installment loans in California are even better than payday loans not only because you can get them even with not-so-good credit, but also because they have better terms. Unlike payday loans which only allow you to borrow up to $300 which must be repaid in one lump sum within a month at the latest, you can usually borrow more with installment loans. They are also usually are paid off over a period of several months up to a year in fixed installments which allow your budget more flexibility. Your credit is important with installment loans, but it's only one portion of the factors taken into account.
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