One of the most important metrics a lender uses before lending money is the borrower’s credit score. Whether you are applying for loans or credit cards, a poor score can lead to rejection. In fact, 21% of Australians were denied credit cards because of a low score.
If you are going to apply for a loan, your credit score will be a major factor in determining whether or not it gets approved.
However, it is not easy to ensure that you have a high score because it requires a combination of money management and a steady cash flow. This makes it important to know some ways to get a loan approval despite a low score. Here’s how you can do that:
1. Broaden your search horizon
Various lenders have different cut-offs for the credit scores they require to grant a loan. Some lenders tend to have a very steep credit score requirement while some can be a bit lenient and have lower requirements.
For people with low credit scores, it is critical to widen their search horizon for lenders. You can’t simply look into the requirements of a couple of lenders because, in all probability, their credit score requirements will be more than what you have. The more lenders you look into, the better your chances will be to find someone who is offering loans for the score that you have.
However, you need to make sure that you look only for reputed and credible lenders like https://www.greatsouthernbank.com.au/ and not fall for shady organizations.
2. Have a conversation with your lender
Your bad credit score can be a thing of the past. You might be in a better position financially now than you were sometime back. Your income can be more stable or your salary higher.
Whatever the case, if there is improvement in your finances, you need to provide proof of it to the lender you are approaching. If the improvement is genuine and sustainable, there is a better chance of your loan getting approved despite a low credit score.
You can even have a discussion with your previous banker from whom you had borrowed a loan as they can arrange for better financial terms for your loan even with a low credit score.
3. Opt for secured loans
Unsecured loans like personal loans and credit card loans are the hardest to get with a low credit score. There is a high chance that your request for an unsecured loan will get rejected.
On the other hand, lenders are much more likely to approve a secured loan. When there is enough collateral attached to a loan, the lenders would not mind a low credit score as they can make up the money if it isn’t paid back. Your request for a secured loan is much more likely to get approved.
However, be sure that you carefully analyze your financial situation before attaching collateral. Only if you are sure that you can repay the loan should you go for collateral otherwise you can end up in a lot of trouble.
4. Apply for a joint loan or add a guarantor
A great way for someone with a low credit score to get their loan approved is to apply for a joint loan. Get a trusted person like your spouse or someone else with a good credit score to apply for a joint loan with you.
This increases the chances of your loan getting approved by a lot as the other person’s credit score will reassure the lender as they too become liable for loan repayment. Adding a guarantor with a high score is a great way to get approval for your loan.
5. Go for a smaller loan amount
There is little chance of your loan getting approved if you are asking for a large amount. The creditor wouldn’t feel comfortable lending you a large amount owing to your low credit score. What you can do, instead, is to apply for a smaller amount. It is much more likely to get approved.
Payback the amount in time. Repeating this process several times will go a long way in improving your creditworthiness. Soon, it will become good enough for you to apply for a loan of a larger sum.
Trying to get loan approval with a low credit score can be a difficult task but if you follow the tips above, you should be able to get an approval.
10 Unique Ways to Earn Money in 2022
In today’s time, several people shift to digital means to expand their reach and save operational costs to earn money. This does not end here as various new opportunities have been added with the growth of huge technological advances around the world.
With this, anyone from anywhere can now earn income by selling their products through online websites or other platforms such as social media pages. These great opportunities help you make money and earn extra cash from the respective industry. So, in this write-up, you will come across ten unique ways to earn money and make your future bright.
1. Complete Online Surveys
Yes, you read it right. You can easily earn some money by finishing up online surveys. Many companies today let people participate in surveys that help them to conduct market research and analyze the behaviour of the customers.
Some of the websites that help you to complete an online survey and earn money are:
– Survey Junkie
– Harris Poll Online
2. Review Websites and Give Feedback
If you know about website development and technical skills, earning money as a website tester is the best choice. It is a great way to earn cash and enter the website designing industry. This will surely improve the reporting quality of the websites.
Some of the places where you can get the website testing projects are:
3. Voice-Over Work
Voice-Over work is an amazing way to make money as this is a project-based job, and no long-term commitment is required. The amount earned from voice-over work depends on the project type and script length. Here are some of the options that can help you to earn cash through voice.
4. Become a Mystery Shopper
If you are great at shopping, then earning money as a mystery shopper is a great way. Several research organizations require mystery shoppers to shop at different locations and give Feedback.
This is done to check the services provided to the customers, check the product quality, and examine the store conditions without letting the employees know they are being evaluated.
Below are the organizations that let you earn money as a mystery shopper.
– Secret Shopper
– Market Force
5. Sell or Rent Second Hand Products
Renting or selling second-hand products is an excellent way to make quick money online and motivate you to work. Keep high-quality images of these items to list them on several online marketplaces. If you plan to do this for the long-term, then opt to sell & trade in your phone online or build a website to create your online store.
6. Start Money Blogging
Blogging is a great way to earn money for the writer in you. Start a blog to share your views, share insights, and create a brand for yourself. To earn money from blogging, it is necessary to attract customers and be consistent while posting content.
7. Join an Affiliate Program
Join affiliate marketing programs to make money online. Earn money as a commission by promoting products and services on various marketing platforms. There has been a great success in affiliate marketing as there are more opportunities to earn the desired money.
Some affiliate programs and networks to make money are as follows:
– CJ Affiliate
8. Create your Hobby YouTube Channel
Creating your YouTube channel is the best way to earn money Online in 2022. YouTube is one of the largest video platforms that let people make money by starting their hobby channel, and ensuring their eligibility for money.
9. Become a freelancer
Freelancing is a popular way to earn money at your convenience. Being a freelancer can help you to choose your respective clients and work according to your schedule. It is an extra income that one can choose to get success in their respective industries. Freelancer and Upwork are the two best freelancing websites to help you get started.
10. Teach Students Online
Students now search for online remote lessons to learn and study for their courses. So, if you are interested in teaching, then choose to become an online tutor. Make money by giving online classes on desired subjects and creating online lesson plans.
These are some popular platforms that you choose to teach online:
Thus, these are the ten most common ways to make money online. Choose the one that suits you best according to your financial situation and skills.
How to Relieve Yourself from Student Loans
Getting rid of student loans, although possible, can be a rocky ride. Luckily, there are several ways you can use to speed up the process through discharge or loan forgiveness programs.
Now, the challenging part isn’t making on-time monthly payments. Instead, it’s the multiple student loan forgiveness programs, repayment plans, other alternatives offered by states, and more.
If you want to pay off your student loans, use this guide to find a program that fits your current situation.
8 Ways to Get out of Student Loan Debts
1. Income-Driven Repayment Plans
If, at the end of 20 or 25 years, you still have a loan balance on an income-driven repayment plan, it’ll be forgiven. Also, these plans can reduce your payment each month because your regular bill is capped at a percentage of your discretionary income.
However, remember that when you extend your payments to 20 or 25 years, it may cost you more due to interest in the long run. Also, any amount that’s forgiven will be taken as taxable income.
That means you’ll most definitely make one last payment before you gain your financial freedom.
2. Public Student Loan Forgiveness (PSLF)
If you work in public service for ten years, you could qualify for the Public Service Loan Forgiveness. To be eligible, you must work for at least 30 hours each for ten years in public service.
Besides that, you must make at least 120 qualifying payments each month under one of the income-driven repayment plans. Typically, you don’t get taxed when you receive loan forgiveness via PSLF.
However, the PSLF program may change in the coming years. The program is certainly not set in stone.
3. Teacher Loan Forgiveness
If you’ve been in the teaching service full time in a lower-income community school, you could qualify for Teacher Loan Forgiveness. You could have all of your Perkins loans forgiven and up to a maximum of $17,500 of a Stafford or direct loan forgiven.
4. Student Loan Repayment Assistance
You can find numerous universities and states, including some companies, who’ll be willing to offer student loan repayment assistance programs. Most (although not all) of these LRAPs are suited for professionals in specific fields such as pharmacists, teachers, doctors, veterinarians, etc.
Usually, LRAPs offer student loan forgiveness after one to three years of service. In addition, some universities provide loan assistance for qualifying alumni. But usually, they’ll have to work at a non-profit high-need area for some years before qualifying for the loan assistance.
Furthermore, employees receive student loan benefits from certain companies, which matches a percentage of their monthly payments. So, depending on where you work and live, you could be eligible for loan assistance that can help you get rid of your student loans.
5. Closed School Discharge
If your institution closed before you completed your program, you might qualify for a closed school discharge. To be eligible, you must either have withdrawn from the college less than 120 days before it shut down or be enrolled when the university closed.
If you completed your program before the school shut down and all you need is your certificate or diploma, you wouldn’t qualify for the loan discharge.
6. Total and Permanent Disability Discharge (TPD)
Are you a veteran with a disability you got from your service to the country? Are you receiving Supplemental Security Income or Social Security Disability Insurance?
If you have a medical condition that has hindered you from participating in any substantial gainful activity for the past 60 months, you could qualify for the TPD. Also, if the condition could result in death, you can be eligible for the total and permanent disability discharge.
7. Unpaid Refund Discharge
If you enrolled in an institution but withdrew along the way, the university may have to refund the remaining balance to the lender or the U.S. Education Department. If the school fails to give this refund, you may qualify for a discharge.
However, the refund will only cover the unpaid amount.
8. Discharge in Bankruptcy
First, it won’t be that simple to get a discharge in bankruptcy, but it’s possible with Chapter 7 or Chapter 13 bankruptcy. Before you can qualify, you have to start an adversary proceeding, and you can do that by filling a complete to determine the discharge.
After that, it’ll be up to you to prove that paying off your student loans will cause undue hardship. However, bankruptcy shouldn’t be your first or second resort; it should be your last. You have to make sure you use all other student loan alternatives before you consider this option.
If you’re struggling to pay your student loans, you might be tempted to avoid your debts and walk away without making payments. However, ignoring your student loans won’t make the situation go away; it’ll only worsen it.
That’s because your loans will likely get into default, and that will result in dire consequences. And that could seriously affect your finances. So you need to find legitimate ways to help you get out of debt, and you can start with the tips outlined in this guide. If you don’t know what to do, it’s always advisable to talk to an expert.
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