Where To Find A Personal Loan With Poor Credit

When you have bad credit, you may have some difficulty obtaining a personal loan. Most people with sub prime credit can still find financing; however, the interest rate on a personal loan is likely to be much higher than for a person with good credit.

The first step is know how poor your credit actually is. You can determine the state of your credit by requesting your credit score and credit history report. Once you have that information, you can begin to research poor credit personal lenders, both online and locally, to find the most suitable loan to fit your unique situation.

If your credit score is very poor, you will be viewed by lenders as a bad credit risk. You may have to provide some type of collateral and get a secured loan. One common form of collateral used to get a loan with bad credit is real estate. This type of secured loan minimizes the risk for the lender, because if you default on your loan, they can legally take your house. When someone faces the possibility of losing their home if they do not make their loan payments, they will find the means necessary to repay the loan.

Your home is not the only form of security you can use to get a bad credit personal loan. Some lenders will be willing to accept a vehicle as collateral, as long as the value of the vehicle is in line with the amount of money you wish to borrow. In fact, using your car to secure a personal loan may be preferable to risking your home. A home foreclosure would be more damaging to your credit than surrendering your car to a lender, and a less expensive vehicle can usually be found as a replacement. If you have a vehicle that is paid off and a willing lender, it makes more sense to use it as security for a small loan of less than $10,000, than to risk losing a home that is likely worth more than $100,000.

If you own neither a home nor automobile, there are other things that can be used to obtain a loan with poor credit. It is possible to use stocks and bonds, jewelry and other valuables as collateral for your loan. In fact, almost anything with tangible monetary value can be used as collateral provided you can find a willing lender. Lenders prefer assets that will expose them to a minimum amount of risk, and are relatively easy to liquidate.

If you have sub prime credit and have nothing of great value to offer as collateral, some lenders will still be willing to extend you credit. If you only need to borrow a small amount of money, or less than $1000, you may be able to get a loan with no collateral and with no credit check. If you need to borrow much more than this, you will likely need a co-signer to guarantee your loan.

As a last resort, you can get a payday loan or paycheck advance loan. These loans carry steep finance charges which can work out to over 800% interest when annualized. Payday loans are short term loans guaranteed by your wages, and are normally payable on your next payday, or up to 30 days. Rolling over these loans will allow you to stretch your payment schedule if you are unable to meet the obligation to repay on your next payday; however, this is a dangerous tactic as you will incur additional finance charges which make the loan even more difficult to pay off. You should only consider a payday loan if you have exhausted all other options.

Almost anyone can get a personal loan regardless of their credit history, although people with the worst credit will either pay substantially higher interest rates or be forced to offer the lender some type of security to guarantee repayment. Don’t borrow beyond your ability to pay, and begin to build a history of timely loan payments. As your credit score increases over time, many more loan options will become available to you.

Unsecured Personal Loans and You

There are many types of personal loans available in the market. If you’re in need of a loan, it is very important to examine all your options first before settling with your final choice. One type of loan is the unsecured personal loan. In this article, we’ll consider the advantages of unsecured personal loans over its other loan counterparts.

The difference of an unsecured personal loan over a standard loan is that it doesn’t require the borrower to submit collateral. The collateral used for loans can be one’s home title, car, land, boat, business equipment, savings account and some many other material processions. In most cases, the borrower submits his own home title as a security for the loan. With an unsecured loan, a borrower can have the peace of mind of not putting his home on the line to answer for his debts.Whatever happens, you will not lose your families home just because you failed to submit your loan payments on time.

Nevertheless, getting an unsecured personal loan is often more difficult than secured loans. Since the lender does not demand any collateral, an excellent credit rating is often required in order to be approved. For this reason, some people will fail to qualify for an unsecured loan. If you have good credit and you’re in need of a loan, then you should have no problem getting your unsecured loan approved.

Do unsecured personal loans come with high interest rates? Because of the risks involved, lenders offering unsecured loans often charge slightly higher rates than secured loan lenders. But if you prefer a loan that doesn’t require any collateral on your part, then an unsecured loan is your best choice. If you do research well, it is possible to find unsecured personal loan lenders that offer very reasonable rates.

Once approved, a borrower can usually receive the loan money in as little as 72 hours or even less, depending on the lending company. Repayment periods will vary from one lender to another. Generally, the repayment terms for an unsecured personal loan are 5 to 10 years.

However, unsecured personal loans are 100% based on your credit history and may only be limited to a smaller amount of cash when compared to secured loans. It all depends on your credit. For instance if two borrowers with credit scores of 680 applied for an unsecured loan, and one has had large unsecured credit lines in the past, while the other has good credit but its limited to small unsecured amounts, the borrower with the large loan amounts will be approved for more money, even thought they have the same credit score.

Does this mean that unsecured loans do not have any risk to the borrower at all? Staying true to his repayment obligations is a must for all borrowers whether he obtained a secured loan or an unsecured loan. Take note that if you deliberately neglect your obligations to pay your unsecured personal loan, your lender will of course report you to the credit bureaus. Since the loan amounts are often quite large, many lenders will sue you for the money. A legal law suit against your name will definitely cause damage to your credit. In some cases, the court can grant your lender the right liquidate property you own to get their money if you’ve been found guilty of abandoning your payment responsibilities. To avoid any complications, it is best to take your repayment obligations seriously and stick with what is agreed upon on your loan contract.

Introducing: Personal Loans After Bankruptcy

Filing a bankruptcy at the local court is not the beginning of the end for your financial world or your future. In fact, coming back after such an ordeal may be an indicator of future strength. Securing a personal loan after bankruptcy may be an ordeal, but once landing one and seeing it through on the agreed-upon terms, will indicate your ability and worthiness to go on with other folks trusting you.

First Steps to Securing a Personal Loan after Bankruptcy

After your application for a Chapter 7 bankruptcy has been approved by the courts, it may be necessary to wait two years before asking for another loan. Your income and your stability will be paramount after that time period. While this time passes, you need to show that you are no longer a high-risk to lenders. Keep all your time payments and utility bills up to date.

Boost Your Credit

While you are waiting for that magic time after which you can apply for loans on the strength of your own creditworthiness, why not try for a secured credit card and a small personal loan. You will need to put up cash, from $2-300 to get a secured credit card.

That amount will never be used to keep your payments up to date, but it will be your credit limit. These cards are an excellent way to eventually qualify for a personal loan after bankruptcy. In spite of that deposit, you will be required to make your monthly payments on time, every time. This will surely help your credit scores and credit worthiness. Only if you default on your obligation will your deposit be put towards your debt, and at the same time, the credit card issuer will put another black mark on your credit history.

Small Loans

Many folks have taken to applying for small personal loans from a variety of vendors. Often, the amount from the loan is put into a separate bank account and then payments are pulled out those accounts automatically to meet the terms of that particular loan. After doing this a few times, bankruptcy folks have seen their credit ratings slowly but inexorably rise. These too are excellent precursors to getting a personal loan after bankruptcy.

Just in Case

If you are not quite into bankruptcy, you may want to consider taking out a consolidation loan. This will pay off all your creditors and get you into a loan where you make one payment, at one interest rate, at one time of the month, to one creditor. This can make your financial life a lot easier, your payment could be a lot less than the sum of all our other payments combined. And this could be a good way to avoid bankruptcy in the first place.

Other Post-Bankruptcy Personal Loan Options

After bankruptcy, you may want to approach a local jewelry store, appliance store, or other mom-and-pop store you may be willing to give you a purchase on a monthly payment plan. Go for it but keep your payments on time and on amount. After you have successfully retired such a loan, ask the small-time lender to give you a letter of creditworthiness. This too can help you re-establish your credit.

Loans after Bankruptcy

As noted earlier, you do not fall into a dark hole never to come back after bankruptcy. Taking little steps and minding payments and making them on time, can go a long way to putting yourself into a place where creditors will once again be willing to offer your a loan. Many ways exist to find a personal loan after bankruptcy.