How and When to Borrow Money (Even for “Poorly Qualified” Borrowers)

There are a couple of phrases in lending that seem a little judgmental, especially to those to which these terms are applied. “Creditworthiness” is one of the most often heard in lending circles. A potential borrow who doesn’t have the best credit score, or perhaps has a little too much debt, would not be considered “creditworthy”.

How and When to Borrow Money (Even for “Poorly Qualified” Borrowers): eAskme

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This same group is also described by creditors as “poorly qualified”. Like the other term, this often feels like a negative slur, used to describe a “Certain kind of person” but without considering your personal circumstances.

In fact, there are many reasons by someone might be in a tough financial place. To say that these people lack “creditworthiness” is to, perhaps, make unfair assumptions about their lives and character. Still, it’s the reality of lending in today’s day and age. If you have bad credit or a high debt-to-income ratio, you’ll likely be denied a loan by your bank. However, this isn’t the only option available in 2017 for people in your situation.

The modern lending landscape has been turned topsy turvy by the internet and mobile technology. There are so many options for borrowing money today, there is no way that you won’t be able to get a loan, no matter who you are. Here are some of the new ways that supposedly “poorly qualified” borrowers are getting the money that they need.

1)    Title Loans and Equity. 

A car title loan takes the equity you have in your car (the portion of your loan that you have paid back) and gives it to you as cash. When you pay back the title loan (which is usually less than the total equity you have), you get back ownership of that equity. This is an often overlooked and very effective way for people to get money using possessions they already have. The same technique can be applied to your home, with some minor differences. The equity you have is given to you in cash (or some portion of that equity), and you just have to pay that portion of your mortgage back.

2)    Dealer Loans. 

If you were to buy a car or similar high-dollar investment, you can likely acquire financing straight from the dealer. In most cases, these dealers make it very easy to borrow their money in order to make cars available to the most possible people, many of whom may not have the best personal credit. If you need money in a situation like this, ask for onsite financing.

3)    Web and Mobile. 

There is a whole host of online lenders that appeal to every income and debt situation. Look around for the one that applies to you. You may find a Peer to Peer Lender who gives loans from one individual to another. There are many options. Find one that works for you.

There are so many ways to borrow money today that no one should be able to say they can’t get a loan. Not all loans are of the same quality, or have the same terms, but these days money is available for all.