A bad credit history can stay with you for a very long time. The effects can be debilitating: limited access to credit, high interest rates and an overwhelming feeling of helplessness. Yet, fear not – bad credit personal loans do exist. You’ll be able to get the money you need, you’re going to just need to put the time in. Perhaps there is no such thing as a guaranteed bad credit personal loan but, again, plenty of lenders are out there waiting to do business with you. Let me explain.
Do you need a personal loan and are you willing to spend time shopping around for the loan? Do you constantly worry that because you have bad credit you will be unable to get the money you need? These two questions should never worry you. Getting bad credit personal loans has never been easier because lenders are competing for dwindling borrowers in this economic slump. The numerous foreclosures, repossessions, and personal bankruptcies mean lenders are in tough shape and need new customers. For folks like me this is good news as loan options do exist.
First, check with your local bank or credit union provided you have a strong track record with them. Perhaps, you financed a car or home with them to prove your track record regardless of credit. Or perhaps you have collateral in the form of a car, retirement/investment accounts, a boat, or home. Possession of any of these things means you have collateral that can be used to back your loan.
Second, use some of the great web lending sites available. A quick scour of the internet will give you a plethora of lenders looking to do business with you. You’ll be able to shop for rates, receive multiple offers, and more just by investing a few minutes online.
Third and last, if you are in a total pinch you can always go for a payday loan or cash advance loan. These loans range in amount from $200 – $2000 depending on your income. In most cases, your credit will not be checked. You’ll just need to verify employment and posses an active checking account. The interest on these loans can be high and typically payback is in 30 days, but, at least they represent an option available to you regardless of your credit.
In conclusion, don’t feel upset or depressed about your situation. Bank money you need and be willing to put up collateral. Your credit need not ruin or prohibit you. Utilize the resources mentioned in this article and you will well be on your way to getting the money you need.
By: Joy A. Harrison
Posts Tagged ‘High Interest Rates’
Low Interest Rate Personal Loans And Where To Get Them
May 10th, 2010
There are so many lenders out there that if you don’t know how to shop for a lender you can end up paying high interest rates even if your credit is not that bad.
Everyone tells you to shop around for a lender that offers you the loan terms that you desire. However, loans are not a pair of jeans or a t-shirt and knowing where to get the best loan for you is not an easy task. Though there is no general answer to that question, by following these guidelines you will be able to obtain low interest rate personal loans.
The Source of Funding
If you have currently a relationship with a financial institution where you have an acquaintance that you trust you should contact them first. Though you may not get the best terms, you will surely obtain more flexibility than with any other lenders out there that will check your financial history from side to side in order to see if you are trustworthy or not.
You can always borrow from friends or family. If your situation is complicated and your credit is really bad, this may be the only way to go. Otherwise we strongly advice you against it because it will most probably bring more problems than the ones it will solve.
If there is no other choice, document the debt and write down the loan conditions along with any other stipulation and let both parties sign it.
Also, make sure you obtain written receipts every time you make a payment even if it is your mother lending you the money.
Another excellent source for finding a suitable lender is the internet. Within the net you will find thousands of online lenders willing to provide you with your desired low interest rate personal loan. However, how do you know that a company is reputable or not? How do you know that you are getting a good deal and you are not being ripped off?
The best way to eliminate these doubts is to compare as many different loan quotes as possible without affecting your credit. In order to achieve this, you need to request informal quotes from lenders for which you will need to have at hand a recent copy of your credit report.
Precautions to Take When Searching for Online Lenders
Lenders can’t require money upfront for a loan. It is illegal and you should never do it. Intermediaries can charge a small fee, but they will never claim to do so in exchange for an actual loan. Also, you can verify the lenders’ references by contacting online non profit organizations that protect customers against identity theft and online fraud. Finally, before committing to a particular lender and loan contract, make sure to read the fine print of the agreement in order to avoid clauses that could turn the loan too onerous
By: Sarah Dinkins
Refinance Home Loan: 3 Home Loan Refinancing Pitfalls to Avoid
February 22nd, 2010
If you are in the process of refinancing your home loan, there are a number of common mistakes you need to be aware of. Here are three home loan refinancing pitfalls you need to keep an eye out for when refinancing your mortgage.
Watch Out For Prepayment Penalties
A prepayment penalty is a clause in your loan contract that requires you to pay a penalty if you refinance or sell your home before the penalty expires. Prepayment penalties can be expensive, mortgage lenders often charge up to six months worth of interest on 85% of the original loan balance. Predatory mortgage lenders include excessive fees in their loan contracts to discourage you from refinancing the loan. If you have good credit there is no reason to accept a home loan with this penalty.
Never Agree to Arbitration
Predatory mortgage lenders often ask you to agree to arbitration as a condition of having your loan approved. If you agree to arbitration you are forfeiting many of the rights and protection you receive under the law. Agreeing to arbitration means that you agree to a third party arbitrator resolving any legal disputes you have with the lender. Never agree to arbitration with any mortgage lender.
Watch Out for High Interest Rates and Fees
Predatory mortgage lenders often try and sell subprime mortgages to homeowners with good credit. This means you are taking out a bad credit mortgage regardless of your credit rating and will pay higher interest rates, lender fees, and points. The only way to know for sure that what you’re paying is fair is to shop from a variety of mortgage lenders and compare all aspects of the loans. You can learn more about comparison shopping for the best mortgage by registering for a free mortgage guidebook.
By: Louie Latour