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4 Ways to Get a Private Money Loan with Bad Credit in CA

So you’re ready to buy some real estate. That’s wonderful! In most cases, you will need to secure financing for your purchase. But how do you get a private money loan with bad credit?

Before you begin to feel defeated, learn about the different ways you can get a private money loan, even if your credit score isn’t where you want it to be. 

First thing is first…. Check Yourself!

Loan with Bad CreditBefore you apply for a line of credit, you’ll want to know exactly what your credit report looks like. If there are some things you can clear up quickly, do so.

A couple of small collection items can take a huge toll on your credit and significantly decrease the amount you are able to borrow. Paying a small amount up front can help you borrow a greater amount in the long run. Sometimes you may find an error on your credit report that can reduce your score.

Ensure accounts that have been paid off are reflected as such in your report and are not listed as outstanding. Once you’ve gotten your credit buttoned up, you can begin thinking about different options for getting a loan.

1. Call Your Bank

Aside from yourself and maybe a significant other, nobody knows more about your finances and your ability to pay back a loan, more than your bank. Your bank has intimate knowledge of your spending habits, your average balances, the number of times you’ve had an overdraft, and they can base your loan off of these factors in addition to your credit score.

If you have a positive banking history, but low credit due to one mistake or difficult situation, your bank will see this. Find out what your bank can do for you before looking at other sources.

2. Peer to Peer Lending

An option many people never even consider is peer-to-peer lending. Online services and big data come together to help connect investors and borrowers. Companies such as Prosper and Lending Club allow borrowers to receive funds without the use of an official lending institution.

This makes the process of getting your funds fast and simple. Fees are minimal and many other factors aside from credit are looked at when determining your rates and credit limit.

3. A Loan From Family or Friends

This can turn into a sticky situation if not done in a professional manner. If a friend or family member agrees to help you with a loan, the process should be handled in a formal way. Specific terms of repayment need to be set, a loan agreement signed by both parties and all expectations need to clearly be stated in writing.

You can even go so far as reporting the loan to the credit bureaus, this will help you repair your credit in the long run. Be careful when borrowing from someone you are close to. You wouldn’t want a financial disagreement hurt a friendship or family relationship.

4. Find a Co-Signer

If you have a supportive friend of family member who wants to help but doesn’t have the cash to give you a loan directly, they might be willing to co-sign on a loan with you.

This is a risk for them, and could potentially destroy both of your credit scores should you default on the loan, and your co-signer isn’t able to pay. It is a responsibility not to be taken lightly and should only be done between two people who only have the highest amount of trust for one another.

In Conclusion…

Just because you have bad credit, doesn’t mean you won’t be able to get a loan. Explore the many alternative options available to you and do your homework before you apply for any loan.

Do you want to learn more about ways to get a private money loan with bad credit? Fill out this form to have a representative contact you or call our office for more information! 949-625-4533


Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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