Personal Loans for Single Mothers

You are lucky if you are a single mom capable of handling all the finances on your own. This is one of the biggest struggles for many single mothers. This is why they look for all the information they can get about personal loans. With only one income being split into children’s education, bills, food, and everyday expenses, there will come a time when finances seem uncontrollable. 

Are you qualified to apply for a personal loan if you are a single mom?

Yes, it is possible, but before you do, make sure to find out everything you can about the loan and weigh the pros and cons of getting one. When you begin inquiring about loans you can get as a single mom, the lender’s first question is how you intend to pay it. As much as they would like to help ease your current financial burden, without knowing how you’d pay for the debt, they might only add to your stress. 

The other factors that will affect your qualification for a personal loan include the following:

• Your credit score
• The reason why you’re getting the loan
• The amount you want to loan off
• The current balance of your savings account

What’s your Credit Score?

A credit score is an account of your past actions regarding borrowing and paying your debt. Having a high credit score will increase your chances of getting approved for a personal loan. It serves as your character reference when it comes to how responsible you are in handling your debts.

How do you get good credit rating scores? Most of your financial transactions matter in making your credit score higher. They include managing your credit cards, dutifully paying off loans, and paying your bills on time. People who get bad credit ratings usually have unpaid dues, loan defaults, and often miss paying their outstanding bills.

Lenders, including banks, assess your loan application using your credit score to get an idea of whether or not you’re capable or responsible for paying the debt. If you have a good credit history, it will be easy to get approved for loans in most cases. There are even times when you might get discounted interest offers. 

The opposite may happen to those with bad credit ratings. While there are cases wherein your loans would be approved, they might come with higher interest rates. If you have a bad credit rating, you should not get your hopes up every time you apply for a personal loan. Without clearing your financial history, you’d likely get a thumbs down when you apply for a loan.

It is best for single moms with a bad credit score to do everything they can to improve it while they are still not struggling with their finances. You never know when you will need the money, and knowing that you can get approved for a loan serves as an assurance that you can count on it when worse comes to worst.

Single Mothers with Bad Credit Score

It is not impossible to get approved for a personal loan if you have a bad credit score, but it is not going to be easy. As a single mother with a bad credit score, you might get lured to lenders who offer loans for people in a situation like yours but with higher interest rates. 

It is also likely that these lenders would ask for additional conditions and terms, so you have to be aware of all these before signing up for anything. They might ask security against an asset’s value in exchange for the loan you are applying for. They may be your home’s equity or your car.

You can scout for these lenders who are open to loaning out money to single mothers with bad credit ratings before choosing which ones to send out your applications. You can check out financial websites and look for them in the personal loan marketplace. 

When searching in the marketplace for lenders, it will be easier for you to assess the situation. You will be asked to input your details, including the amount you wish to get and the reasons why you are applying for a loan. The marketplace will come up with the list of lenders that may offer help, your chance of approval for the loan, and the kinds of loans you are eligible to apply for.

You may also want to get in touch with people in the same situation as yours through online forums. You can share your experiences and struggles in applying for loans and ask for suggestions about the lenders you can check out.

Applying for a Loan

Here are the steps you have to accomplish if you are a single mother who wants to apply for a personal loan:

1. You must first check your credit score. 

Many credit reporting agencies in countries, such as Australia, allow their clients to check their credit reports once a year without any charges. This will make you more aware of your financial standing and check for errors in your financial history. If you find mistakes, you can take action to correct and fix the issues. This way, you can catch mistakes early and get them fixed to increase your credit score rating that may help you when the time comes that you have to apply for a loan.

2. Don’t apply for the first lender you see, but instead, compare the available options for a personal loan. 

In most cases, the cheapest offer is not always the best one, but they are also instances when you will benefit the most from the cheapest loan. You have to look into the terms, consider the benefits and features of the loan. You must also list out the offers and compare the interest charges. In the end, you would only want to settle for the kind of loan that you would benefit from and not drown you further in debt.

3. Make sure that you meet the criteria the lender is asking for. 

Do not waste your time filling out forms and sending your information to loans you are not qualified to get. Many of these personal loans require applicants to be over 18 years old, have a good credit rating, meet the minimum requirements when it comes to income, and must be a permanent resident of the place where the lender is situated.

4. You have to talk to the lender before making your final decision. 

Ask them questions and thrown in your other concerns regarding the loan you want to get. They are the best people to explain the terms, and you will have lower chances of getting rejected when you know what you are getting into beforehand.

5. You have to complete the requirements and prepare all documents needed.

The waiting game is hard when it comes to applying for a personal loan, but while you are waiting whether or not your loan would be approved, you must start thinking of ways of how to improve your finances. A loan can only help you temporarily, and you have to think of long-term plans to avoid getting other loans in the future.