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How To Get Loan Approval If You're A Struggling Single Parent

6 August 2019

Mathéo Gerard

Finances can be challenging if you're a single parent. Not only can it be hard paying bills on just one income, but it can also be especially difficult if your credit history is a bit rocky. When an unforeseen emergency comes up or you need cash quickly, the first place you turn to is your bank or credit union. Unless you have a solid credit history, approval may not happen through traditional lending. Choosing a bank that looks past blemished credit gives you more options. Here are some ways to still get a personal loan or financing if you're single and have credit concerns. 

Show Some Form of Payment History

When seeking out financing through an online lender, they make look past a low FICO score, but only if you have a solid payment history in place. Some examples include: 

• A utility bill in your name
• Automobile loan
• Rent or mortgage payment history
• Credit card in good standing
• Phone contract

You can use any of those to prove a credit history. Just make sure they are in your name and there is a consistent payment record. 

Prove a Steady, Consistent Income

The main thing every lender looks for is how you're going to pay back the loan. For example, a debt consolidation loan takes all of your high-interest cards and defaulted loans and puts them into one easy monthly payment. Your income, including child support and any disability income, will be considered when determining the new loan amount. The goal is to get the debt paid off fast so you can rebuild your future credit. 

Choose a Lender Who Looks Past Your FICO Score

Loan specialists, like those at Liberty Lending Group, look past applicants with a rocky credit history. This is a win-win for you. With a steady payment history and good income flowing in, you no longer have to be straddled with high-interest credit cards and swamped with overdraft charges each month. Getting a personal loan to help with sudden expenses like car repairs and medical emergencies can be a lifesaver. There are lenders willing to give out personal loans based on the applicant's ability to pay, and not punish them for bad financial history. 

Start Building Your Credit In Small Ways 

No one can get a 700 credit score overnight, it takes time. While your credit score may not get you the lowest interest rate or best loan terms on the market today, it doesn't mean you can't improve your future credit rating. A personal loan and a debt consolidation program are financial accounts that also help build your credit. Within as early as three to six months, you can see a dramatic improvement in your credit score which will boost future financial buying power. 

Being a single parent can be hard. It's easy to fall behind on bills when you have to put food on the table. The good news is a personal loan can give you back the peace of mind you need to care for your family and have a bright future. 

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