What to Do When a Lender Stops Offering Lines of Credit

iQuanti: Lines of credit offer an easy, flexible way to get access to funds, so it can be inconvenient and unexpected when your lender stops offering these loans. This may be because the lender has changed their policies or has chosen to offer different loans to customers. If this has happened to you and you're wondering what your options are now, not to worry. Whether you want to get a new line of credit or try an alternative, here's what you can do if your lender stops offering lines of credit.

Compare new lenders and line of credit options

If you lose access to lines of credit from your lender but still want to have this loan option, you can do some research online to compare new lenders. Find a safe and legitimate lender offering line of credit terms that work for your budget and needs. Many lenders operate completely online, so you may be able to fill out an application, get approved, and receive your funds all from the comfort of your home. Additionally, line of credit lenders often have a quick or instant decision process, so you may receive the funds in your bank account the same day you apply.

Many lenders have less strict requirements when it comes to your credit score and will consider other factors like your income, employment history, and current debts when deciding whether to approve you for a line of credit. This means you may get approved even if you have a poor or fair credit score.

Consider other loan options

If want to go a different route instead of getting another line of credit, you can consider other lending options. There are many loans with varying degrees of eligibility requirements, interest rates, and terms. Here are a few types of alternative loan options you choose from:

1. Installment loans

With installment loans, you'll receive a lump sum of money that you'll pay back in fixed monthly payments, or installments. This short-term loan can last several months or a few years, depending on the lender and loan terms. Since installment loans have fixed payments that are set when you first get the loan, they can be easy to budget for. Better yet, many installment loans also come with reasonable interest rates.

2. Title loans

If you own a vehicle and don't mind using it as collateral, consider a title loan. These secured loans let you receive funds worth 25 to 50% of your vehicle's value. Many title lenders approve borrowers with poor or fair credit, so you may not need a great credit score to qualify. Just remember that you're at risk of having the lender repossess your car if you default, so make sure you can pay back this loan before applying.

3. Cash advances

Cash advances are short-term, small dollar loans that can get you instant cash to cover expenses before your next payday. You'll repay this loan when you get your next paycheck, typically in two to four weeks. Lenders often don't require borrowers to have good credit, so you may get approved with a poor or fair credit score. Just remember that cash advances can come with high interest rates.

The bottom line

Luckily, you have plenty of options if your lender stops offering lines of credit. You can find a new line of credit from a different lender or consider alternative loan options like installment loans, title loans, and cash advances. Compare the options available to you and make sure you can pay back the loan you choose before you apply.

Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.

Source: iQuanti, Inc.

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Categories: Personal and Family Finances

Tags: financial services, loans, personal finance