A person who has to deal with bad credit can have a difficult time finding a loan at a reasonable rate. Subprime loans are often regarded as loans with excessive fees but this is not necessarily true for all lenders. By doing research, it is possible to find a bad credit loan with a reasonable offer.
Secured Personal Loans for Bad Credit
Do you need a personal loan for a financial emergency? If waiting until your credit score improves is not an option, you can apply for a secured bad credit loan. If you have a home property, a car, or any asset which has a higher value than the amount you plan to borrow, you can use it as security for the loan.
The collateral you will submit can enable you to get a much lower interest rate than a non-secured loan for bad credit. Furthermore, you can choose a more flexible repayment period which can range from 5 to 25 years, depending on the amount you borrowed.
Bad Credit Loans Guaranteed Approval
What if you do not have a property to submit as collateral for your loan? In this case, you can obtain an unsecured personal loan for bad credit. There are certain limits to unsecured bad credit loans such as a smaller loan value and a shorter repayment period. As expected, the interest rates are slightly higher than secured bad credit loans.
These unsecured loans are also known as guaranteed approval loans, quick loans, payday loans or cash advance loans. Although the names may vary, all these loans are specially offered for people with bad credit or no credit history.
The basic requirements to get approved are for the borrower to be of legal age, have a job and have an active bank account. The maximum amount for these types of loans varies depending on how much you get paid. For those with a higher salary bracket, they may be able to borrow a larger amount based on the value of their salary. The loan limit for these loans may depend on the State Laws as well.
Borrowers are reminded to seriously consider their repayment capability before acquiring one of these loans. Take note that for a secured bad credit loan, you run the risk of losing your property to your lender if you fail to complete your repayment obligations. Before signing up for a loan, read and understand the Terms and Conditions.