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Are you looking for a personal loan but you have a poor credit score? While this affects the interest rates you’re charged, there are banks and local credit unions that offer affordable personal loans to those who are working on improving their credit score. North Jersey Federal Credit Union specializes in matching their Totowa, NJ, clientele with the most affordable loans on the market. Below, they outline how to get approved for a loan with a low credit score.

Ways to Get a Loan With a Poor Credit Score

What a Local Credit Union Can Do for You

When many banks turn down a consumer for poor credit, local credit unions take the time to look at an applicant’s big picture. In certain circumstances, they will approve a smaller loan at a higher interest rate than average. While this might not seem like the best deal, it is an opportunity to improve your overall credit score. 

Why Making Payments on Time Is Important

local credit unionTo qualify for lower interest loans in the future, you will need to make all your payments on current accounts on time. This includes any kind of bill that can ultimately be sent to collections and negatively impact your credit score. As a rule, pay all loans on time every month. You will soon improve your credit score and qualify for better rates. 

How a Co-Signer Helps

If you have a parent, friend, or loved one who is willing to co-sign on a loan for you, this can be a way to acquire a personal loan. However, if you don’t make the payments on the account, both your credit scores will be negatively impacted. Go into a co-signer agreement with only full intentions to pay off the loan in a timely manner. 

If you’re interested in getting a personal loan or you’re looking for a local credit union, the team at North Jersey Federal Credit Union is on hand to assist you. They specialize in helping their clients establish high credit and match them with the most suitable financial products available. Call (973) 785-9200 or visit their website for more information. 

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