Borrowing Tips For Families With Little To No Credit

Just because you have little to no credit does not mean that you cannot borrow money. If you are trying to build your credit or rebuild your history, borrowing money may be difficult but it is far from impossible. By being a resourceful consumer, you can uncover options that you never knew about when you are in search of money. Here are some options you may have never considered if you need to borrow money and your credit is holding you back.

Borrow From Friends or Family

If you have a good reputation with your friends and your family and you are considered to be reliable, someone you have a close relationship with may be willing to lend you money. When you approach your family, make sure they take you seriously by treating the transaction like one that you would complete with a bank. Write up promissory notes, have them notarized, and set up a repayment schedule. Just remember, failing to repay your friends can end a relationship and cause tension which is often worse than having a blemish on your credit.

Ask Someone to Co-sign

Just because you cannot borrow from a lender on your own does not mean a lender will not consider your application with a co-signer. While you repay the loan, the co-signer is the party the lender will attempt to collect from if you default on the loan. Defaulting on the loan can affect both your credit and your co-signer's credit, so it is important to ask only if you are able to repay. Co-signing is a huge favor to ask and you should not be offended if family says no.

Apply for a Cash Advance

Your credit history does not affect your ability to apply for and qualify for an advance from a cash advance Houston TX lender from companies like Power Finance. With proof of stable employment and a minimum income, you can qualify for a short-term loan and get the money you need very quickly. This method is great for financial emergencies.

From cash advance loans to conventional loans with a co-signer, there are ways for borrowers with little credit to borrow. Consider all of your options, take any type of borrowing that you choose seriously, and work hard to build a credit history as you are paying off the balance of the money that you owe to friends, family, banks, or cash advance companies.