Do borrowers need a good credit rating to

LOS ANGELES, Dec. 30, 2021 (GLOBE NEWSWIRE) – A credit score gives lenders an idea of ​​how likely borrowers are to repay their loan, but it’s only one of the factors lenders look at when taking loan decisions. Although it can be difficult to find personal loans without a credit check, borrowers can still get personal loans with fair or poor credit. Below are some other factors lenders might consider, and some options for borrowers with poor credit.

Factors taken into account by lenders in addition to credit

Lenders want to be reasonably confident that their borrowers can repay the loan. Here are some factors they can take into account in addition to a borrower’s credit rating when deciding whether or not to approve them for a personal loan:

Debt-to-income ratio

Besides credit, one of the main factors that lenders consider is the debt-to-income ratio. If a person’s credit is low, but they earn a high income and don’t have a lot of debt, it shows lenders that they can probably afford monthly loan payments.


Lenders also look at the professional situation of the borrower. A regular work history shows them that the borrower will have the income to make the scheduled payments.


Lenders also offer secured personal loans or loans that use an asset that the borrower has as collateral. Collateral is simply an asset like a car or a house that the lender can use to cover the loan balance in the event the borrower defaults. Since the collateral secures the loan, lenders offering these types of loans are often willing to look beyond a low credit score.

Personal loans for borrowers with poor credit

Here are some personal loan options for borrowers with poor credit:

Cash advances

Cash advances are short-term, low-value loans that the borrower will repay when they receive their paycheck, usually within 2 to 4 weeks. These loans are designed to help borrowers get extra cash to cover their expenses before their next payday.

Many cash advance lenders have milder credit score requirements and will take other factors into account, such as whether the borrower has a regular salary. Better yet, they tend to fund these loans in just one day.

Securities lending

Borrowers who own their vehicles for free can use them for short term loans called title loans. These secured loans use the borrower’s car title as collateral.

Title lenders assess the value of the borrower’s car and then offer 25-50% of the car’s value as a loan. If the borrower agrees, he can get the loan and can continue to drive the vehicle while paying it back.

Personal lines of credit

Borrowers with poor credit may also consider a personal line of credit. A line of credit is a flexible loan that allows borrowers to withdraw as much money as they need up to their credit limit. Borrowers will only pay interest on the amount they borrow and can pay off the loan all at once or over time.

Many lenders with personal lines of credit do not require a good credit rating and will approve borrowers with poor and fair credit.

Getting loans with bad credit

Borrowers with poor credit are unlucky – quite the contrary. Many personal lenders look at income, debt, employment, and collateral in addition to their credit rating when making loan decisions. Whether borrowers want a cash advance, a title loan, or a line of credit, there are many lenders who do not require approval for good credit.

Notice: The information provided in this article is for informational purposes only. Consult your financial advisor about your financial situation.

This content was posted through the press release distribution service at

Previous Cathay Vision Experience (CVX) from Cathay Life Insurance honored at the 2021 International Innovation Awards
Next Concentrix: Completion of the acquisition of PK - Form 8-K