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People who suffer from having bad credit may find it hard to deal with lenders. Most financial companies prefer clients with good to excellent credit and if your credit rating falls short of their expectation, your application will most likely be declined.
But what if you’re really in need of financial assistance? Where can you find the right kind of help?
The fact is, just because you have bad credit, doesn’t mean yours is a hopeless situation. There are many reasons why a person has bad credit. Although uncontrolled debt or financial mismanagement is a common cause, other possible reasons may be circumstances beyond your control such as sickness, a failed business, divorce, or other emergencies.
Why Seek Out Bad Credit Personal Loans?
The big mistake a lot of people with bad credit make is they contact their local bank for help. But their bank maybe grateful for all the years you have been with them. But, not grateful enough to overlook your low credit score and approve your loan request!
Thankfully, there are financing companies who willingly offer personal loans for people with bad credit. Yes, a bad credit personal loan can help you get through bad times. AND these lenders approve lower than average credit scores! More importantly, a bad credit personal loan can be your stepping stone towards rebuilding your credit history. Is it really possible?
Bad credit personal loans are designed to help people get financing who would normally be turned down due to their bad credit. Despite the risks, many lending companies have made provisions for people with bad credit because there is huge market of consumers who fall into this category. In fact it is estimated that 68 MILLION Americans have bad credit!
Loan Rates & Terms
In most cases a bad credit personal will have;
-
- Higher interest rates
- Shorter repayment terms
- May require security (depending on your credit score and the dollar amount of the loan)
- Higher closing cost
Understandably, lending companies may require higher interest rates and fees because of the risk involved. Nevertheless, this doesn’t mean you should settle with unfair costs or unreasonable terms. Even if you suffer from bad credit, you still deserve to be treated fairly and with dignity. To avoid dealing with the wrong kind of lenders, you have to be willing to spend time and effort researching and comparing bad credit loan lenders. We have compiled a list of good and bad credit lenders here
How These Loans Help Rebuild Your Credit
These loans are the first step towards showing lenders that you can now meet your financial obligations. By making all your payments on time, you can add a very strong tradeline to your credit report. And if your credit report is like a lot of people with bad credits reports. You have lots of negative tradelines. These negative tradelines are a beacon to lenders to STAY AWAY. But when they see a new line of credit that is being paid on time and consistently. They start to feel more comfortable in taking a chance on you.
Watch Out For Scams!
Unfortunately there are a lot of people that look on bad credit borrowers as easy targets. SO many of them need financing and they are so grateful that someone will finance them, they overlook a few things.
- Stay away from anyone offering you lower than average rates. We have had clients scammed because they jumped thru hoops to get a 3% personal loan. How many people with good credit get that!
- If they need you to pay “insurance” on the loan. That is just a way for them to get money out of you. I once met a lady who gave a scam company all the money she had saved over a 10 year span to get an impossibly low interest loan. Of an amount she clearly didn’t qualify for. So many lenders said no to her (including us) because she had a very low credit score. And wanted over $250,000. Since she worked at a job that paid her less than $35,000 a year and she was maxed out. There was no way to qualify her. She gave them all she had in the hopes they would indeed give her the loan. Once they had her money, no one picked up the phone for her anymore. When she contacted us she was in the middle of trying to sue them. But in the fine print it said the money she paid was a brokerage fee. Due whether or not they obtained the financing for her. It was buried in the middle of a 15 page contract.
[Article: Do’s and Dont’s On Acquiring a Bad Credit Personal Loan]
Do Your Research
The internet is a great tool for researching a finance company’s background and reputation. It is also a convenient way to compare rates and fees of one lender to another. Remember that aside from having a reasonable interest rate, you want to make sure that there are no hidden charges or unreasonable clauses in your loan contract.
annie12
October 30, 2009Personal loans for unemployed people can be availed through physically lenders as well as online lenders.Since personal loans for unemployed people can be availed in two categories secured and unsecured loans are also very fruitful for the bad credit individuals they can easily apply for it without exhibiting their credit history.
Reginald
November 12, 2009Listen, I’m looking for any one that could help me gather some good ideas on how I could get a loan to help me invest on the business. I find lots of businesses but lack of money stop me from getting start. is there any way that I could get this loan because I have the badest credit in the world.
Please answer.
Thanks
jhonmarsh
November 17, 2009In business, a financial plan can refer to the three primary financial statements (balance sheet, income statement, and cash flow statement) created within a business plan. Financial forecast or financial plan can also refer to an annual projection of income and expenses for a company, division or department.
fakir
November 7, 2009The credit loans are very much essential and people need to know from where they are getting and the benefits he is offering for the loan. It is too important to make a note about the way we are going to return money and the resources we have.
bendjamin
November 20, 2009I am a very new to the whole loan thing and have literally been all over my hometown trying to find a personal loan. The thing is, I have very little (pretty much none) credit history, and even then it is stated as bad credit because of a small fee I forgot to pay to a past college, which was sent to debt collection. I am currently trying to find a loan for $4,000 to pay tuition fees, but everywhere I’ve been it has been denied because of my crappy credit and to top it off have income from SSI as unemployed. I don’t have much time before my school is to request my payments for tuition, in which not even student loans could help me with this because the school itself is abroad. I guess being a total newbie to this whole thing also messed things up, because I didn’t know that each denied mark decreases the chance of a different personal loans company even more, and I ended up with about 5 marks already, and can’t re-apply with the chance of a co-signer because I don’t have one…
… being one with fixed income as disabled, I will say that I am NOT the kind who takes advantage of the system and lives off the government in this matter. I have been struggling to complete college since the day I graduated highschool and so far have been making the most of my education from day 1. Now that I’m finally here in the start of my career, being marked disabled has only made things much harder as I am barred from getting employment or any independence whatsoever… it really sucks
anybody have any serious solutions as to how I can deal with this kind of loan problem?
I seriously feel as stuck as a fish in one of those plastic soda things…
admin
February 22, 2010Have you talked to your schools financial aid counselor? Since your school is abroad and not in the US I don’t really know how to help you, but I wish you the best of luck!
steelson6
January 13, 2010I really agree with bad credit personal loans because those people who need them really need the most help. Along with just getting the loan i think they should have to take a class so they can learn more about finances because the more we learn about finances the better off they will be and they won’t be back having more problems. Honestly if finance was taught better there would be a lot less people going into debt i believe.
berry
January 21, 2010Really i am impressed from this post….the person who create this post he is a great human..thanks for shared this with us.i found this informative and interesting blog so i think so its very useful and knowledge able.I would like to thank you for the efforts you have made in writing this article.
Ellen
February 22, 2010i would like to open a loan but i have a bad credit please help me
admin
February 22, 2010what kind of loan? What is your credit score? How much do you need?
Toya
April 17, 2010I need to apply for a bad credit loan but where do I go to apply for one?
Ming
April 22, 2010I need a loan or credit card with a $4500 limit, to become a certified dog groomer (includes the course & supplies) but I have really bad credit. I have a guaranteed job as a certified dog groomer…I just need the certification. I need a loan that can pay for my schooling. I don’t know what to do!
Small Bad Credit Loans
April 26, 2010Excellent article that addresses a broad spectrum of issues. When I left a relationship there were some bills that got unpaid and left me with bad credit. Obtaining loans after a situation like this can get quite complicated if you don’t know where to look. The best advice is to work on rebuilding your credit as soon as possible. Lenders may notice that your score continues to improve and may help you lower your rates. In a year or so of rebuilding your credit using revolving payments (such as credit cards that you pay off each month)that should help you obtain better rates and lower payments in return. This will help with personal loans, car loans, house loans, etc. Each percentage point added to a loan regardless of size adds up extensively over time.
Stacy
April 28, 2010oh, and our credit is getting worse and worse.
Roxanne
June 15, 2010Where can you get these loans?
Chloe
July 26, 2010Fact is, you cant. Try a title loan….(if you own a car you can put up your title for about 1-2k, but if you don’t pay, they keep it and you wont be able to trade in your car, they can aso take it.
Also, try cash advances, you must have a checking account in most cases some may ask you for a voided check so that they can deduct the amount, or a small percentage of the amount form your direct deposit in your checking account.
Try your credit unions or try your schools.
Other than that, you are prety much screwed unless you work really hard on knicking off debt.
You can also “opt out for 5 years” of receiving offers for credit cards, its free and it boosts your score up 8-20 points.
Andreea
August 16, 2010Indeed, they can help you a lot for the moment, and hopefully after you can get to pay back all the money you got from the bank..- that’s tougher right?
Hannah
September 9, 2010We should all be responsible in paying our debts, after all these banks have helped us anyway.
Ugg
January 18, 2011This actually answered my downside, thanks!
needan auto loans
September 2, 2011Thanks for the advice and good information.
Nick Prosser
September 15, 2011Thanks for sharing superb informations. Your website is so cool. I am impressed by the details that you¡¦ve on this web site. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for more articles. You, my friend, ROCK! I found simply the info I already searched all over the place and just could not come across. What an ideal web-site.
Melanie Mathis
September 19, 2011Welcome Nick!
bad credit auto loans us
December 2, 2011Your information is great, and thank you for your response.
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