Personal Loans In Today’s Market

When you’re working with a credit score that’s seen its fair share of dings and negative marks, your options for finding lenders that are willing to provide you personal loans greatly decrease. However, a bad credit score does not have to mean the end of the line. These are tips for obtaining personal loans with bad credit in today’s market.

Obtain Your Credit Score

Lenders know that in this day and age, debt is something that almost everyone is dealing with in some form or fashion. Many people shy away from applying for personal loans simply because they believe obtaining a line of credit requires perfect credit. This is far from the truth. Rather than assuming that your credit score is too low to be even be considered for a personal loan, log onto a website like CreditKarma.com to get an idea of where your credit stands. Note the number you see, as you will need it later.

Go with Local Lenders

Many local lenders will happily provide minimum credit score requirements without making you go through the laborious process of filling out a loan application. A couple of great places to start would be through your own bank or a credit union. Credit unions, in general, tend to be more flexible about standards for loaning to borrowers. Going with your own bank will also likely increase your chances of getting a personal loan if you’ve exhibited good banking practices over a long period of time.

Limit the Amount of Applications You File

To put it simply, you should never throw loan applications at the wall to see which one sticks. Each time a lender pulls information about your credit, your score actually takes a minor hit. When several lenders are pulling your credit score at once, this can amount to a rather significant blow. Leave the more restricting lenders by the wayside and only apply for one loan from a lending institution that publicly provides its minimum credit score requirements.

Beware of Online Lenders

Once you start browsing the web for lenders that help borrowers with bad credit, you’ll quickly find that there are websites everywhere that tout instant approval on your loan application, regardless of the condition of your credit. The FTC (Federal Trade Commission) warns that lenders that do not express an interest in the credit histories of its borrowers should be avoided at all costs.

If you decide to go with an online lender, always check its reputation. Do a bit of research on the company and ensure that you’re dealing with a trustworthy lending institution. If you happen to be turned down by your bank or a credit union for a personal loan, pay more attention to the online lenders that have trustworthy credentials and practical loaning standards.

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Even With Bad Credit, Personal Loans are Possible

Many people have the false misconception that if they have bad credit, then there is no way that they can obtain a loan. However, even with bad credit, there are options available for people to obtain personal loans. One way to do this is to apply for personal loans that are designed for people who do not have a high credit score. With these types of bad credit loans, payment plans can be structured to fit the individual’s needs. Creditors will understand that these individuals may have had a hard time with their loan commitments in the past; therefore, the creditors will make sure that these loan payments will not place a hardship on the borrowers. Additionally, bad credit loans are a perfect way for individuals to improve their credit score. By making timely payments and paying the entire payment amounts, individuals will drastically improve their credit rating in a short amount of time.

When individuals decide that they want to apply for a bad credit loan, the first thing they will need to do is find a lender who specializes in helping people with bad credit. For example, if the individuals are looking to purchase an automobile, then it would be wise to find a lender who helps with auto loans. In many cases, the lenders can allow the borrowers to obtain the loan with no money down; however, there will probably be higher interest rates. If the lender is a reputable lender, then the individuals should have confidence in knowing that they will get the best interest rate possible.

Although many people try to obtain bad credit loans for automobiles, people can also obtain them for purchasing a home. In most cases, houses do not stay on the market for long; therefore, the buyer will want to have the money for the home as soon as possible. When borrowers need money quickly for their new home, then a bad credit loan can help them to get the money. Usually, once the person fills out the application, the money will be there in a short amount of time.

When applying for a loan that is reserved for people with bad credit, it is important to remember that the conditions of the loan may not be as favorable as other loans. First, there is the possibility of the interest rate being higher. However, if the person’s credit is just a little bad, then there is still a good chance that he or she will get a good interest rate. A second condition that may be affected is the length of time that the borrowers will have to pay back the loan. When people have good credit, they may have several years to pay back the loan; however, for people with bad credit, they may have to pay the loan back within a matter of months. A final condition that may be affected is the total amount of money that borrowers can receive. If the borrowers have a large income, then they may qualify for additional money.

It is important that people do not let their bad credit history be the cause of them not getting personal loans. There are tons of lenders waiting to help people with bad credit. Once these lenders are found, the borrowers can get on track to restoring their credit rating.

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Bad Credit Loans Just In Time For The Holidays

When a consumer has bad credit, he or she will have a hard time landing personal loans. When this happens, some borrowers turn to expensive borrowing methods; other times, a person will have no options and will not get the money needed. However, with these five options, a person can get bad credit loans he or she desires.

Local bank: When going to a local bank, a customer will have a better chance at success. While larger banks look solely at the numbers, a community bank will have the personal touch. When sitting down with an employee from the bank, a client can give his or her reason for having poor credit. If it is the result of bad luck such as a medical bill, a borrower may have an easier time getting the money he or she desires. This is especially advantageous when a customer has been with the bank for a long time. Remember, while credit score is a huge part of the equation, the human touch can go a long way in getting a personal loan.

Store credit: When buying a gift for Christmas, a shopper can usually put the item on layaway or use a store credit card. When doing this, a person with poor credit can qualify for a small loan. This is especially true during the holiday season when stores want to get merchandise off the shelves. However, this is only useful when buying an item at a given store.

Family and friends: Often, a person with a bad credit score will have friends and family who can loan them money. This is the perfect option when a borrower does not need a lot of money. Of course, when borrowing from friends, a borrower should still write up a legal contract and do everything with paperwork. This will help people avoid problems in the future if any problems occur. While this is a great method, a person should exercise caution and not take advantage of people just because they are friends. Remember, this is beneficial for both sides as the person lending the money can make a profit while helping out his or her friend.

Someone with excellent credit: Often, a young person without established credit will need a cosigner. This is also the case when a person has poor credit due to previous poor choices. When looking for someone to cosign, one must remember to find a person with good credit; otherwise, the plan will waste time for both people. Now, the cosigner must realize that he or she will have to pay the loan off if the original borrower does not make payments. Otherwise, the cosigner will see his or her score drop drastically since missed payments are detrimental to a good score.

Peer lending: When looking for personal loans, a consumer should head to a peer lending site. Here, a customer can borrow money at a decent rate. When signing up, a customer should list their need for the money and the interest rate they want to pay. If there is a match, a client can borrow money for his or her needs.

Bad credit loans are hard to come by, but not impossible. With these five simple tips, a borrower with a poor credit score can still land a loan for the upcoming holidays.

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Getting a Personal Loan With Bad Credit

Most people assume that if their credit is bad they cannot get a personal loan; however, this assumption is incorrect. Even with bad credit, there is money available from lenders, so if you find yourself in need of cash for any number of reasons, you can get a personal loan.

Is there a catch to getting personal loans with bad credit?
There is really no catch to getting a personal loan with bad credit, but like anything else in life, there are trade-offs. When you have bad credit, there will be three areas that affect the terms of your personal loan. The first is obvious to most people. Interest rates for personal loans accompanied with a bad credit rating will mean paying higher interest rates. How high these interest rates are will be dependent upon how bad your credit rating is. The worse your credit rating is, the higher the interest rates. This is true with any lender, but market conditions for lending money are also a factor. If there is a great supply of money that needs to be lent to people and there are few borrowers, the interest rates may be lower from normal levels. This is why it is important to shop around and compare interest rates from several lenders. Competition between lenders for business with those with bad credit exists, and it keeps rates from getting too high for the average person.

Another trade-off is with the length of time for the personal loan. Those with good rating ratings can often get two to three years to pay back a loan. Those with bad credit may only get three to 12 months to pay back the entire amount. The length of time will be dependent on your income and the length of time at your current job as well as your credit. Applicants that are seen as having a steady and sufficient income for the loan will often be given a longer time to pay back the money.

A third trade-off because of bad credit
Another issue that affects bad credit loans is the total amount that you will qualify for. This amount will vary depending upon which lender you apply to, but the bigger factor will be your income. The more money you make, the more money you will be able to borrow. However, without any collateral to offer as security for the loan, most lenders will cap the amount at $2,500.

Secured versus un-secured loans
The limitations on personal loans with bad credit assume that an applicant has no assets to offer as security for the loan. In fact, if you have sufficient assets to offer as collateral, the only issue will be an income, so the lender will know you have the means to pay back to loan. Lenders are in business to make loans to earn interest, and they don’t want to be in a situation where they have to sell an asset to get their money back for the loan. This is why lenders are picky about the types of assets they will take as security; they want to be able to turn the asset into cash quickly if the situation calls for it.

Many people with bad credit have few assets to use as collateral, and if they did, they could sell it or pawn it to get the cash they need. However, one overlooked asset that many people have is their car. If your car is paid off, you can use it as security to get a personal loan, and you do not have to leave your car with the lender. You only leave your car title with the lender. You can still have use of your car.

Whatever path you take in pursuit of bad credit loans, remember that there are limitations but many options for you. Take your time and shop around for the best deal.

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Where To Find Loans For Bad Credit Borrowers

If you have bad credit, it can be hard to get a loan. However, there are many options available to you if you need money quickly. Whether you need cash to pay your mortgage on time this month or if you want money to buy a car, where can you find a lender willing to provide loans for bad credit risks?

Borrow Money From Yourself

Anyone who has a 401k has the ability to borrow from themselves with no questions asked. You can then repay the loan by putting the money back into your account within five years. The loan can be paid at a minimal interest rate that is calculated by taking the prime rate and adding one or two percent. Payments can be made quarterly to give you extra flexibility.

Go Online To Find Loans For Bad Credit

The Internet is full of bad credit lenders willing to work with people who have poor credit or a poor credit history. In most cases, there will be no credit check to get the loan. Additionally, the loan payments may not be reported to credit agencies. This means that you won’t risk hurting your credit even further if you can’t make a payment on time. If you don’t have a job, you may still be able to get a loan if you have income from sources such as a pension, disability payments or alimony.

Do You Have A Car Or House?

If you own a house or a car, you can use those assets to secure a low interest loan. Those who want to use their car as collateral for a loan can get a cash advance of up to 70 percent of the value of that car. Borrowers who are using their home as collateral will either cash out the equity in their home or take out a second mortgage to get the money needed to pay their debts.

Ask Your Employer For A Salary Advance

Your employer may be willing to give you a loan or an advance on your salary if you are in need of quick cash. The best reason to take a loan from an employer is that you can usually get good terms because you will secure the loan with future paychecks. Money can be deducted from your paycheck each pay period to pay back what you owe. If you take a cash advance, you won’t owe any interest on the debt because it is money already owed to you.

Anyone who is in need of cash or wants a loan to buy a car or consolidate debt can find a willing lender regardless of their credit status. While you may pay a slightly higher interest rate, using assets or future paychecks as collateral can reduce the risk that the lender faces and allow you to pay less interest than you otherwise would. Combined with favorable repayment terms, a loan from a 401k or borrowing against the value of your home can be great ways to get money fast.

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