Credit is a vital theme for numerous individuals, including anyone trying to obtain a loan, but it’s sadly misunderstood by too many people. In particular, there are those who believe that without robust credit, it’s completely impossible to secure a loan of any kind — this simply isn’t true at all, and there are several options at your disposal if you have bad or even no credit at all.
At 1st Choice Money Center, we’re here to help. We offer a wide range of personal loans, title loans and other quality loan products to clients throughout Utah and Idaho, including those with poor or no credit who are looking for some financial assistance. Speaking specifically about personal loans, what are some of the key myths regarding credit that we help debunk while assisting our clients? Here’s a quick primer.
Myth #1: Personal Loans Require a High Credit Score
While this statement might be true at a traditional bank or another larger financial institution, the same does not go for loan centers like ours, which evaluate other factors in addition to credit scores. We’re proud to say that our application process is designed to work with almost any budget, working on a case-by-case basis to determine your financial standing and whether you can afford the loan you are applying for.
Myth #2: Personal Loans Require Collateral
Another common misconception concerning personal loans is that they require collateral in order to be approved. However, our loans are unsecured in nature; you’ll simply need to provide proof of income in order for us to approve your loan.
Myth #3: Personal Loan Repayment Terms are Always Bad if You Have Poor Credit
Repayment terms are another area where, while credit does play some role, it’s not the only factor. In fact, our terms are designed to work with your income and budget as a whole so that you don’t have any problems making your payments on time every month.
In short, there’s no blanket rule or single standard when it comes to personal loans and credit scores, which is why we recommend speaking to one of our loan experts to find out more.
Myth #4: A Personal Loan Hurts Your Credit Score More Than Other Types of Loans
Lastly, it’s often believed that personal loans have a more negative effect on your credit score compared to other types of loans. Again, this is not true. Any loan you take out is treated in the same manner by the major credit bureaus when it comes to determining your credit score, so don’t be afraid of applying for a personal loan just because you have poor or no credit.
For more correct information on credit and personal loans, or to learn about any of our title loans, installment loans and other services, speak to the staff at 1st Choice Money Center today.