While being approved for any kind of loan when your score is below average is difficult, it is certainly not impossible. These days, there are lenders who will consider applicants with a bad history of borrowing money. However, to run responsibly, these companies or people will look for other ways of guaranteeing they get installment loan their money back.
For instance, you may have heard of a ‘guarantor’ loan, whereby a trusted third party agrees to repay the amount if you fall behind on your repayments. Your guarantor will typically be a family member in a recognised professional (i.e. lawyer, teacher, accountant) that has a good credit score themselves and a reliable, steady income.
However, depending on your personal circumstances, this isn’t always an option. You may not know anybody with a high enough income to guarantee your loan; you may also feel uncomfortable asking them to. Either way, you’ll be grateful to know there are other options if you have a blemish or two on your borrowing record.
Some lenders will still work with you if you have poor credit. They will rely on information about your employment, income and other factors to decide your eligibility, and will probably ask for personal references to make sure you are a reliable borrower.