Do you need cash and do you have lousy credit scores? One exists to help you remedy both problems at the same time. If you have made late payments, missed payments, missed payments, exceeded your credit card limits, or even filed for bankruptcy, a bad credit personal loan may be available for you. It will give you the cash you want to meet your financial needs plus give you an opportunity to bring up your credit rating.
Unsecured and Secured Bad Credit Personal Loans
Bad credit personal loans come in two flavors - secured and unsecured. Your bad credit loan is going to have higher than normal interest rates than the regular market because of the risk the lender takes. However, a secured personal loan will have lower interest rates, the reason being that if you default on the loan the lender will be able to take the property (real estate, stocks and bonds, late model car) you have signed over as collateral and sell it to cover the cost of the loan. Also, with collateral offered you may be able to get a larger loan. If you do not wish to post collateral you can consider an unsecured loan. Your interest rates will be higher and you may not be able to get a very large bad credit personal loan.
Bad Credit Personal Loans from Online Lenders
If you look for personal loan lenders online, you will find scores that are willing to lend money to folks with bad credit. Beware of online fraud. Be sure any website that requires you to enter personal or financial information is secure. And check on the reputation of your lender. The Better Business Bureau has online listings that grade the various lenders and even offer customer feedback. Since there are so many lenders online, be sure to shop around. Chances are you will find a bad credit personal loan lender who will give you almost normal interest rates with very comfortable repayment terms.
Online Personal Loan Brokers
Getting a loan from an online lender is relatively easy. Often you can find a broker who will take your general information and provide a list of lenders who may be willing to lend to you in light of the information you provided. Online applications are easy to fill out, documentation required can be faxed or scanned. You may be able to complete the whole process and have money in your banking account within 24 hours without ever having to leave the comfort of you r home or office.
Smaller Banks and Credit Unions
If you have been an account holder at a bank or credit union for some time. always give them a try. If you have been a good customer, and especially if you hold investment or retirement accounts with them, they may come through. They will be able to give you the best interest rates. But, you will probably find it tough to get a bad credit personal loan from most large traditional lenders such as banks. You might want to approach credit unions or even smaller banks. The interface with these lenders would be on a much more personal level and they may take into account extenuating circumstances that made you fall on hard times and smirch your credit history.
Improve Your Credit Scores
No matter which option you choose to get your bad credit personal loan, do not blow it. Make sure your pay off the loan according to the terms in your contract. If you can, send in extra payments. If you do this, you will put yourself on the path to a better credit history and more loan approvals in the future.