Homeowners are in a rough spot these days with declining property values and a volatile housing market. However, your home still is and always will be your greatest asset. In cases where homeowners suffer from bad credit, personal loans are actually still available for up to $50,000 from private, non-bank lenders. This article will go over five tips for finding the right personal loan for you.
1. Why Private Lenders?
Though it is often tempting to go to your own bank when looking for any kind of loan, in fact those with bad credit are far better off with private lenders who specialize in giving loans to those with bad credit. You can find the right private lender at home from your computer since most of them operate through the internet.
2. Check into Each Prospect
A good guideline is to highlight five potential lenders to look into before moving any further. Since you are dealing with lenders whose main presence is online, you need to get more information before you proceed. One resource to use is the ratings and comments found on the Better Business Bureau's website. There are also several forums where other borrowers will share experience and advice on good and bad lenders they have found.
3. Your Lending Needs
As a homeowner, you can choose to put your home up as collateral against the loan that you need. This option, called a secured loan, is really your best shot at getting $50,000. The other options - unsecured bad credit personal loans - are generally only given in amounts up to $10,000. So, if you need a larger sum, your best bet is the secured loan.
4. If You Still Cannot Find the Loan You Need
Though private online lenders make a habit of serving those with bad credit, they cannot always help everyone due to a number of circumstances. Especially if you need to find an unsecured loan, the best way to increase your chances of getting the money you need is through using a cosigner with better credit and/or a larger income.
5. Be a Smart Shopper
There are really a lot of options on the internet if you need a bad credit personal loan, all you need to do is know where to look and what to look for. Searching for a term as simple as personal loan will reveal dozens of people to look into for your lending needs.
There are also many other tools available online that can help you get the deal you need at a rate you can afford. Online lending calculators, available for free, can help you look at the specifics of the loan you may want and help you calculate monthly payments based on rates, fees, interest and terms.
Homeowners with Bad Credit Can Get Help
Owning a home is a huge advantage in the lending market, especially if you have bad credit. However it is important to make sure you are still careful about what money you do take. Assess your needs in terms of total amounts and your ability to repay the loan in the term offered. $50,000 is a lot of money and can go a long way in helping you out, but you need to make sure you are responsible with the money you do take in order to preserve what credit you have left and maybe even increase it in the future.