If you are looking for a personal loan with bad credit, then you likely have had trouble getting credit in the past and need a loan for various reasons. Today, there are many people with credit problems and the number is growing. As a result, companies have been springing up that work with people that have credit problems, and people can get personal loans with bad credit easier than ever. We’ll go over some of the options that you have to get an unsecured personal loan with bad credit so that you can find one that works for you and gets you the credit that you need.
Getting a personal loan for people with bad credit used to be nearly impossible. But today, with the advent of payday loan companies, short term signature loans and a variety of options for securing a loan, it is pretty easy. Your first option, or at least the option that I recommend looking into first, is a signature loan.
Signature loans are for small amounts, usually less than $1000, and are short term for periods from six months to eighteen months. The reason that I recommend them is that they will work with someone with no or borderline credit, and they will report your good payments to your credit history.
Another option is to get a secured personal loan with bad credit, such as with loans that you put up something of value to secure the loan. Sometimes banks will take collateral to secure a loan and this can include anything from computers, electronics or furniture, or even bicycles or other items that are valuable and that the bank or finance company can sell to recoup the cost of the loan. This is one option that you can think about when trying to get personal loans for people with bad credit. There are a few other options as well.
Another common type of short term loan that people with poor credit can get is a payday loan. How a payday loan works, is by writing the finance company a check in the amount of the loan plus the interest, and then paying the loan back on your next payday. These types of loans are extremely high interest, so you could end up paying as much as fifty dollars on just a few hundred in just two weeks. These type of loans charge the highest interest rates allowable by law and so they are a poor choice unless you are in an emergency situation.
Another type of loan that you can get is the title loan. Title loans require that you put up your car title against the loan, and they charge massive interest rates as well. The difference with these loans, and payday loans, is that you can usually get them for larger amounts, such as several thousand dollars, and can be paid back over a longer term. If you don’t pay the loan off, then the company can repossess your car and then attempt to sell is to get back the amount of the loan, or to hold, to coerce you into paying the loan plus interest.