Biggest Obstacles when Trying to Apply for Credit

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Whether you’re an individual or small business, the world of credit can be an unforgiving one. There are so many obstacles when applying for credit. It’s no longer a matter of driving to the bank and asking for a loan. The chances are you won’t get it. We’re going to show you some of the biggest obstacles when trying to apply for credit and how to overcome them.

No Bank Account

This is the first difficulty you will come up against. You may have recently started a company or you’re between banks. When you don’t have a bank account you can almost forget about applying for credit. Most lenders will not lend to someone they can’t reliably trace. You may be able to find a few companies that specialize in loans for people with no bank accounts but again this is rare. In addition, this is the only way to actually give you the money, unless you’re dealing with a doorstep loan shark. Get an account ASAP!

Bad Credit Score

We all make mistakes. Those mistakes may have led to you having to deal with a bad credit score, though. These nasty scores are a nightmare for those who need money. In addition, there’s nothing you can do about it because they take time to build. There are alternatives to conventional loans, though, such as:

  • Loans specifically for people with bad credit.
  • Guarantor loans.
  • Secured loans.

You’ll never get the best deals without a great credit score, but don’t lose hope simply on the basis that you don’t have a good score in the first place.

Time is Everything

One other problem you’ll come up against is the fact that you don’t have time to wait around. A bank can take weeks to process an application and make a decision. If your car has broken down or the washing machine has broken, you don’t have time to wait. This is why the best option is a personal loan provider. They process applications within 24 hours. Apply early enough and you can even receive the money in your bank account on the same day.

The Amount

So you can get credit, but you can’t get enough credit? This could be due to any number of reasons, but most often it’s due to a bad credit score. Banks and other lenders won’t lend a large amount of money to someone without a good credit score. This can limit your credit to a few thousand dollars. However, if you have a big project that you believe deserves funding, there are alternatives available, and we’ll give you two:

  1. One choice is to simply borrow across multiple lenders and multiple cards.
  2. You could even try crowdfunding if you need a huge amount of money for a project that you believe is of value to the public. This is a grant rather than a loan, but it’s worth a try if you believe your project has public appeal.

Your Spouse

Married couples can have problems if one tries to apply for credit. This is because when you marry you have a joint credit score. If you have never borrowed together, or one has a bad credit record, this can limit your ability to borrow. Many couples get around this by applying as individuals. If one person happens to have a great credit score, they would apply as an individual, even if the loan is for a joint venture, such as purchasing a house.

Conclusion – You Have Options

These obstacles can all be overcome if you are willing to take an honest look at your finances. With so many credit options in the world, there’s no reason why you can’t get the money you need to fund your next venture or to address your next emergency.

photo credit: 20100422-_SML3308 via photopin (license)

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