These days many people are having to face the music when they go to apply for a loan and they have a bad credit history, especially when applying at traditional lenders such as mortgage companies, banks, and credit unions. But bad credit borrowers can get personal loans for up to $50,000. Here are some considerations if you are a bad credit borrower who needs a high-value personal loan.
Even a Bad Credit Borrower May Need a Personal Loan
Many financial companies are aware of the financial problems facing consumers in these financially stagnant times. They recognize that just because someone has a poor credit history does not mean that they do not need a financial infusion once in a while, just as with good credit borrowers. As a matter of fact, so many lenders have entered the market that is possible to get a bad credit loan with interest rates and repayment terms near to what is to be had with good credit personal loans.
Bad Credit Personal Loans to the Rescue
These non-traditional lenders are not going to use your credit history as a main factor in granting you a loan. In fact, they have given personal loans to folks who have judgments against them, have defaults or are even in arrears. Once you get the loan, you can use it anyway you like. Many folks have used them to consolidate debts, pay off medical bills, make home improvements, or even take a much needed vacation.
Bad Credit Personal Loans Come in Two Flavors
Two types of personal loans are available - secured and unsecured. When a loan is secured that means it has valuable property or collateral, such as real estate or a late model car, to back it up. Should you default on the loan for any reason, the lender can seize the collateral and sell it to cover the cost of the loan. Those with collateral are often able to secure larger loans and better interest rates. Unsecured loans have nothing to back them up except your good word and your signature. Hence, you will find interest rates somewhat high to offset that risk.
Diligent Shopping Key to Finding Best Personal Loan
Many non-traditional lending institutions are willing to give bad credit loans, and sometimes it seems there are as many plans as there are lenders. As a borrower it is incumbent upon you to check out as many as you can. The more you search the more you likely you are to find lenders that are willing to offer you the amount you desire, at an interest rate you can live with, and a repayment plan that is light on your budget.
Online Lenders Offer a Variety of Choices
Probably the first place to start looking for a bad credit personal loan is by going online. Just punch your browser with the key words - personal loan - and you will be rewarded with a wide range of lenders. You will even find brokers who will take your general information and do some of your shopping for you by finding a number of lenders who would probably be willing to lend to you based on that information.
Fast Application, Fast Cash
Once you have cornered a lender that is offering you the best deal, the application process is very easy. Just be sure, as with all online transactions, that the application site is secure and the lender reputable. Online applications are very easy to complete and require a minimum of documentation that can be forwarded as faxes or scans. Approval time is very short and you will usually have your cash in your bank account within 24 hours, often sooner. If you are a bad credit borrower in need of a loan up to $5,000, lenders are waiting for your application.