Often, New York consumers need extra cash to cover unexpected expenses. However, if they have bad credit scores, they may struggle to find loan options. Luckily, most consumers in New York with damaged credit can qualify for certain types of loans if they know where to look. Also, if possible, individuals working toward credit repair should work with lenders that report payment activity to the credit bureaus. This way, these New Yorkers get the money they need as well as an opportunity to improve their credit standing. Then, the next time they need to borrow money, they’ll have more options from which to choose.
Good Loan Options for Borrowers in New York with Bad Credit Scores
Before pursuing any loan option, potential borrowers in New York with bad credit scores should closely examine their budgets and make sure that they can afford loan payments. Otherwise, if they miss due dates or default entirely, they’ll do further damage to their credit standings. With this in mind, here are the best types of loans for individuals working to rebuild their credit.
“Bad Credit” Loans
These types of loans are hardly ideal, but they can work for consumers in New York who 1) need money fast and 2) are willing to pay for credit score building opportunities. Interest rates on “bad credit” loans typically run high, and lenders usually penalize borrowers for paying loans off early. Yet, if they are willing to pay the price and keep up with their due dates, consumers can benefit from bad credit loans. Just make sure that your lender reports all positive payment activity to at least one major credit bureau.
Home-Equity Lines of Credit (HELOCs)
Of course, HELOCs are only available to New York borrowers who own their own homes and have equity in their homes. However, even homeowners with bad credit scores can get approved as long as they meet the other requirements. Just be careful with this type of lending. In addition to damaging your credit score, you can lose your home if you default on a HELOC.
Credit Union Loans
Consumers in New York who belong to credit unions enjoy many perks. First and foremost, they develop relationships with their financial institutions. This allows them access to services, such as loans, they might otherwise not get. In fact, if you are a member of a credit union and find that you need a loan, you should go there first. You’ll have a much better chance at approval, and you’ll probably get a lower interest rate on the loan than you would receive elsewhere.
Traditional Loans with Co-Signers
New York consumers with bad credit scores who don’t belong to credit unions can seek traditional loans as long as they have a co-signer. In order for an individual to serve as a co-signer, they must have good credit and a willingness to share responsibility for the loan. Because of the responsibility involved, you should only ask family members or very close friends to co-sign your loan. Then, if you opt to pursue this option, you must keep up your end of the bargain. Otherwise, if you miss payments or default, you can hurt your co-signer’s credit score as well as your own.
Why New York Borrowers with Bad Credit Scores Should Regularly Check their Credit Reports
Consumers in New York with bad credit scores can benefit from taking out loans as long as they do so responsibly and make all loan payments on time and in full. In addition, they should make sure that their positive payment activity is consistently reported to one, two, or all three major credit bureaus. Finally, they should check their credit reports at least once every 12 months to ensure that payments are reported correctly.
Unfortunately, creditors and the credit bureaus frequently make mistakes by mishandling consumer information. These mistakes then show up as errors on credit reports that often bring down credit scores. However, you can avoid unnecessary credit score damage by finding and reporting inaccuracies on your credit reports.
Under the Fair Credit Reporting Act (FCRA), the credit bureaus must remove incorrect data from credit reports. Of course, New York consumers must first find the errors by requesting their free annual credit reports from www.annualcreditreport.com. This federally authorized website offers consumers the opportunity to get copies of their credit reports from TransUnion, Equifax, and Experian all in one place.
Then, while reviewing your credit reports, if spot credit score damaging errors, contact Credit Repair Lawyers of America in New York. Instead of handling the dispute process on your own, let our credit pros do the work for you. By trusting our firm with your credit issues, you’ll also gain access to an experienced credit attorney who will do whatever it takes to get you clean credit reports – for free.
The Free and Legal Way to Get Better Credit in New York
Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Carl Schwartz at (646) 859-3045 or sending him a message through our contact page.
For more information about Free Credit Repair, please visit https://creditrepairlawyersam.com/credit-repair-free/.