~ Take this quiz and find out if subprime is the perfect loan for you!
Conventional loans are the shiny trophies you get when you maintain a stellar credit record. That is in the perfect world, but not everyone has a score of 680 or higher. And for those who fall below that mark, getting a loan is not an easy feat.
And while you think it is the end of your loan journey, there’s still a way. Subprime loans are meant for individuals who couldn’t qualify for a conventional primarily because of their poor credit history.
These loan offers are usually associated with high-interest rate which is why it’s not for everyone. Taking this short quiz and answering the following questions will help tell whether you are destined to be a subprime borrower.
Do you have a score lower than 600?
If you answered yes, then you must have gone through dozens and dozens of lenders and still got denied of a loan. This means you are a good candidate for a subprime loan. It comes with a high-interest rate, though. You may want to consider waiting much longer and try fixing your credit history. But if you got no time for that and paying for the rate would work better for you, then you must be a subprime borrower.
Can’t you provide documented proof of income?
Income verification is an essential process to all conventional loans. You need to provide all the documents to support your income. This will tell lenders if your income source can sustain your monthly payments. But how about those who do not have these documents?
Individuals who are self-employed face this big challenge. It is difficult, if not impossible, for them to provide financial basis on paper. But this doesn’t mean that they cannot afford a loan. Their inability to provide proof of a stable and consistent income just makes it harder for them to qualify for a conventional loan.
If you cannot provide the necessary documents for income verification, you could be a subprime borrower.
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Have you filed for bankruptcy?
Just like poor credit, bankruptcies, loan defaults or missed mortgage payments in the last 12 months can mean “no conventional loan”. Even if your credit has been fixed recently or it has not gone below 680, once these events show up on your credit report within the given time frame chances are you still would not be eligible for a conventional loan.
Individuals facing bankruptcy have very limited access to funding. A subprime loan is one of the very few ways they can get the money necessary to give the situation the needed 180-degree turn. If you’re having a hard time looking for funds, you should consider being a subprime borrower.
Do you need short-term financing?
Although not the only means, subprime loan can be a means to finance short-term projects that need substantial money. It can be used as personal loans, auto loans, boat loans, what have you. It can be for varied uses, and it is easy to apply for. So long as you shell out a large down payment, you are good to go. If short-term loans are what you’re looking for, how about becoming a subprime lender?
Thank you for taking this quick and easy test! If you’ve answered YES to two out of the four questions, chances are a subprime loan is perfect for you.
Although subprime has a market of its own, its strength is still highly dependent on the overall economy. Shop for different loans and lenders. Subprime loans are a good way to start your search. Learn more about this type of loan by clicking here. If you would wish to speak to a lender to get firsthand information, click the link below.