For better or for worse, your credit score serves as your report card for everything that concerns finances. If you have a high score, it’s easier to apply for loans and get credit offers from a variety of funding sources. If you have a low or non-existent one, however, you will likely have a hard time.
Low scores, however, aren’t something you can run away from, and even if you try to escape, it won’t go away. The best option for you and your business, then, is to fund your finances in ways that actually get your score back on track so when you’re ready to move on financially, your score will help open doors rather than get them slammed in your face. Applying for bad credit secured loans, looking back at past credit cards, and even just tapping your family friends can all help to boost your finances and your credit score.
Wager Your Assets
Your bad credit score makes it difficult to apply for loans. It’s natural because lenders will be second guessing your ability to pay them back. Apply for bad credit secured loans instead.
With these secured personal loans, you will leverage your assets or some kind of collateral to gain access to money. If you can’t pay it back, you forfeit the collateral. This is a great option if you really want to bounce back, as your assets serve as motivation to fulfil your payments.
Look Beyond Credit Cards
Although there are credit cards and lending programs designed for people with poor credit, these options will typically charge you a higher interest rate to compensate for the added credit risk. Skip the credit cards if you can and go instead with things that help lessen your debt, rather than pile it. The money you need can come from other sources that rely less on your credit rating, such as a home equity line of credit.
Seek Help from Family and Friends
Chances are, your relatives and friends want to see you succeed financially, whether it’s your personal finances or business that’s involved. When asking for a loan, they won’t likely dwell on your poor credit score because they trust you, or they believe your business is actually a good and profitable one.
Putting money in your pocket can be easy, even if you have bad credit. You just have to fully understand your situation and get help from your connections. Your credit score shouldn’t get in the way of you and your dream business.