Bad credit ratings can stem from a number of different situations and in today's very shaky economy the estimation by some professionals is that as many as one in every three individuals is the victim of a bad credit score. For those people, finding a loan can be a difficult or nearly impossible task. However exclusive loans are offered for only those with poor credit and these loans can be found simply as long as you understand the situation you are in and where to find the exclusive loan you seek. Here are some answers to common questions associated with loans for people with poor credit ratings.
What Causes Bad Credit Ratings?
There are many factors that go into the calculation of a FICO credit score. Among these are a borrower's assets, current debt and past loan repayment. Having accounts in default or arrears as well as IVA's and CCJ's are major detriments to your ultimate credit score.
With the recent housing bubble bust as well as global financial meltdown which has led to many layoffs and other job losses, majority of people in bad credit situations are actually not really at fault in the same way that someone who recklessly spends money is at fault. If you are one of those people whose bad credit is a result of extenuating circumstances, the exclusive loans offered for poor credit may be an excellent choice for you.
Why Is Taking a Loan a Good Idea?
There are literally hundreds of reasons that an individual would take a personal loan with bad credit. However, some of the most common choices are for debt consolidation and unexpected expenses.
The first choice, taking a loan to consolidate debt, is actually a way that borrowing can improve your credit score over time. By eliminating many high interest payments into one, simple payment, you reduce the risk of falling into default through missed payments and may be able to lower your monthly obligations.
What Loan Options Do I Have?
There are many different loans that can be acquired for those with bad credit through exclusive loan programs. These loans are offered in both secured and unsecured forms and can range in value from as little as $7,500 to as much as $75,000.
Accordingly, the repayment period for these exclusive loans will vary based on the principle amount as well as the needs and abilities of the borrower. Generally, you can repay these loans anywhere from 5 years to 25 years.
Where Can I Find These Exclusive Loans?
Online lenders are your best choice when it comes finding an exclusive loan for people with bad credit. These lenders operate on a different set of criteria than traditional banks and other lenders and are therefore able to specialize in lending to those with poor credit scores. The exclusive loans they offer can range in terms of value, which means it is important that you find more than one lender to give you a quote before making any decisions.
When you have poor credit, finding any kind of loan seems difficult. However exclusive loans for people with poor credit exist with the purpose of helping you get the money you need regardless of past financial mishap.