In these financially stagnant times, everything seems to be going up except the amount on pay checks. Many folks are finding it very hard to make ends meet. Because of the tough economy, many folks have taken a few hits on their credit reports.
Folks who have credit cards can use them for cash advances or to pay off any emergency expenses that may come along. Other folks who do not have credit cards, must rely on cash advance lenders to pull them through financially rough times. But many of them may feel that they are out of the borrowing market. That is not always the case. Many bad credit borrowers can successfully land bad credit personal loans.
Preparing to Apply for a Bad Credit Personal Loan
If you have bad credit and are in need of a loan, the first thing you need to do is come up with a budget. You should compare a list of your monthly obligations, things that must be paid, with your take home salary. Is there enough left over to make a payment on a loan? This will be a prime consideration for any lender making a bad credit personal loan.
If you do have enough left over to meet another monthly obligation, you need to determine how much you need to get yourself through your financial hard spot. If you go online, you can find free loan payment calculators that let you determine how much you will spend on a loan at a certain loan amount, at a certain interest rate, over a certain repayment period.
Finding a Lender for a Bad Credit Personal Loan
Once you have decided that taking our a loan is a reasonable prospect, you need to find a lender. Your best bet will be to go online and do a search for personal loans. You will have access to hundreds of lenders almost immediately. You will even find loan brokers who will take your general information and provide you with a list of lenders who will probably grant you a loan based on that general information.
If you go online, you will have many more opportunities than you will find just looking locally. Competition is fierce for two reasons, lots of bad credit borrowers need loans, lots of private lenders have stepped in to provide the service. You will be able to pick and choose to find the lender willing to lend you the money you need, at an interest rate you can afford, with repayment terms that will go easy on your wallet.
Know Your Lender
No matter if you go online or use a local lender, you should check the Better Business Bureau (BBB) listings for the particular lender you have chosen. The BBB will rate the business on a grading scale they have, and you will also find feedback from customers regarding how the lender has treated them. These listings are available online. You might also want to check out online personal finance or personal lending forums to see what others have to say about the particular lender you have selected.
Understand that lenders are people, too. Once you have determined the credibility of the lender, do not be afraid to discuss your financial situation with them. You will probably find a certain amount of flexibility as to establishing your repayment terms, and maybe even the interest rates you will end up paying. If you have collateral, you may want to discuss taking a secured personal loan. Collateral would be in the form of real estate, stocks and bonds, or even a late model car. Secured loans offer larger amounts and better interest rates. Of course, should you default, the lender has the right to seize the property and sell it to cover the cost of the loan.