Your cash flow has turned to a drip. The car needs a new tire. Someone has to buy an expensive medical prescription now. All kinds of things can happen to cause a financial disruption in life, especially if you have not been able to stash away an emergency fund.
When you have no friends or family to turn to, you might consider taking out a bad credit personal loan. But wait, you got your free copy of your credit scores and you rate below 550 on all of them. Not good, especially if you have considered going to a traditional lender such as a bank or credit union. Do not even bother to take that route. See a non-traditional lender.
Other Standards Beyond Credit Standing
If you need cash fast, $100 to $1500, you need to approach a non-traditional lender about a bad credit personal loan. These loans can be had as secured or non-secured. Secured loans have some property to back them up, such as a late model automobile. With these you can usually get more cash and maybe better interest rates. You do not need valuable property to back an unsecured personal loan.
Whichever way you choose, these lenders rarely consider your credit scores. What they will look at is your debt-to-income ratio. That is, after you meet all your regular monthly obligations, whether you have enough discretionary income left over to cover another payment. As you successfully pay off smaller loans, lenders will be willing to lend you more the next time you need cash.
Finding Non-Traditional Lenders
When you need one of these non-traditional lenders, your best venue would be the world wide web. Just punch BAD CREDIT LOAN into your browser and you will immediately have scores of lenders who may be willing to give you a bad credit loan. You will even find brokers who will provide you with a list of lenders most likely to grant you a loan based on financial information you have give the broker.
Just be sure that any page where you give out personal or financial information is secure. You should also check your lender to be sure of reputation. You can start this by checking the Better Business Bureau online listings. They should have a grade and customer feed back for each. You could also check online personal finance forums to see if anyone has a had a bad experience with any of the brokers.
What Non-Traditional Lenders Will Need
Of course, you just cannot walk in and walk out with cash. You are going to need up to two bona fide government-issued forms of identification such as a driving license, passport, state identification, etc. You will need proof of employment and salary; this can be pay stubs or direct deposit bank statements. You will need an active bank account, preferably checking with direct deposit. You will need proof of residency, this could be a utility bill that has an address that is the same as on your identification or bank statement. And, of course, you will need to give your social security number.
Obey Your Contract
Before you sign any contract, be sure to read all the fine print. You have always heard this and you may sigh, but the reason you always hear it is because all kinds of little charges and fees could be stuck in there unseen by you. Once you have read the fine print and sign the contract, be sure to pay back the loan as specified. If you do not, you will add another smudge to your already-damaged credit history. Paying it back on time, or even early, will start your credit report on the road to recovery.