What Are Some Alternatives To Cosigning A Loan?
If you are strapped for cash and need to make an urgent repair or simply have bills to pay, you might be considering a loan. Unfortunately, getting approved for a loan can be difficult, especially if you are a member of a low-income family or have a bad credit score.
In cases like that, it is fairly common to turn to a co-signer. By using a co-signer with good credit, you are more likely to be approved for your loan. However, finding a willing co-signer isn’t easy, and you may be left wondering if there are any alternatives to cosigning a loan.
Thankfully, there are a few alternatives for someone seeking a loan. In this article, we’ll offer a few suggestions that you might be able to pursue instead of finding a cosigner for your loan.
Alternatives To Having A Co-Signer
Collateral Loan
With a low credit score, it can seem impossible to get a loan, especially if you can’t find a willing co-signer, the task only becomes more difficult.
If you have a bad credit score, a collateral loan might be one of the better alternatives to cosigning a loan. A collateral loan is exactly what it sounds like - you put up a valuable item to secure the loan, which will increase the odds of approval since the lender is taking less risk.
A collateral loan will not only allow you to get a loan when you might not otherwise have been able to, but it might also give you a lower interest rate and the chance to rebuild your credit score.
Hiring A Co-Signer Service
If you’ve decided that getting a co-signer is the best option for you, but you are unable to find someone who is willing and able to cosign your loan, you may be able to hire a co-signer service.
To use a co-signer service, you would need to apply for the service. There is typically a fee for the application. If you are approved, the company will guarantee your lender that they will pay back your loan if you fail to do so. Then it is up to your lender to choose whether or not to accept the service as your co-signer.
The service will charge you a fee for cosigning your loan, even if you never have to rely on them to pay back your lender. You will also have to pay back the service if they ever do need to step in to cover your loan payments.
Government Loan Options
Another one of your alternatives to cosigning a loan is looking into government loans. In the United States, there are a few loan programs offered by the government. There are options for business loans, agricultural loans, housing loans, education loans, Veterans loans, and more!
There are also loans available for people with low credit scores. You can check online to see if you qualify for any of these government loan options.
Credit Repair Services
If you are struggling with your credit score and it is causing you to be turned away for loans, you might want to look into a credit repair service. If your need for a loan isn’t urgent, this might be one of the better alternatives to cosigning a loan.
A credit repair service will help you set up payment plans and improve your credit score in organic ways. This option will not only help you in the short term; it will improve your financial life and stability well into the future.
Bad Credit Loans
While most banks and other lenders approve loans based on the borrower’s credit history, some vendors specialize in lending specifically to borrowers with bad credit scores.
Unlike other lenders, these don’t rely on borrowers with a proven track record of paying back loans. Instead, they balance the risk of lending to a possibly unreliable borrower by requiring an asset, such as your vehicle to use as collateral. These loans typically have higher interest rates.
So, if you don’t have a good credit score, have a lien-free vehicle title to secure a loan, and have the means to repay your loan quickly at a higher interest rate, a bad credit title loan might be one of the best alternatives to cosigning a loan for you.
Get Started Today!
Whether you decide to use a co-signer for your loan or not, you can get the process started with At Home Title Loans. A title loan is a great way to get cash fast, and At Home Title Loans can help you get the process started with a reputable lender today. All you need is a clear vehicle title, a driver’s license or government-issued ID, and your vehicle.
The application process doesn’t take long and you can get started in no time at all. All it takes is a quick phone conversation with a loan specialist to get the ball rolling. During that call, you can set up an appointment to meet the representative to verify your documents and inspect your vehicle to determine the amount you qualify for and your monthly payments.
At Home Title Loans makes it easy to connect with a licensed title loan lender to get the title loan process started, with or without a co-signer.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
