Bank Loans For People With Bad Credit

There are many available bank loans for bad credit. It is very important that you know what your needs are when it comes to applying for a loan, because you want to make sure that you get the right type of loan. Borrowing with bad credit is a tricky game because you don't want to make your financial situation worse than it already is.

Bad credit can be very embarrassing. No one wants to have to tell others that they have defaulted on a bill in the past. It is however, absolutely necessary that you are completely honest with your lender. This will save everyone a lot of time, and point the lender in the proper direction in seeking the right loan for you. If the lender believes that your credit history is snow white, he won't be too happy when he runs your report to find out that it isn't.

Of course, everyone's top priority is getting as much as they need, while spending the least. There are several factors involved in this. The first is whether or not you have any collateral. The most important piece of collateral that you may own is your home. The entire value of your home will not be considered collateral, but rather the amount of equity that you own. Obtaining a bad credit bank loan while using your assets as collateral is what is known as a secured loan and it's definitely the best type of loan to get for people with bad credit.

Bad credit bank loans are a lot more likely if you have a home. If you don't, there are some other options that you can look at but you probably need to consider looking for a cosigner that can help you out. Most people won't want to cosign but sometimes it's an option that you'll have to consider.

On the other hand, if you don't have any collateral that you can put down for the loan, it's going to be a little more difficult. These loans are called unsecured bank loans, and are also called bank loans for people with bad credit - they can be rather tricky. They can also be quite costly. Because most traditional lending institutions will most often reject an application from an individual with bad credit, these same individuals are forced to go elsewhere.

Private banks (those who are not members of the FDIC) offering loans to individuals with bad credit are not limited to the same interest rate limits as traditional lenders. As a result, the interest rates for people who have poor credit can be very high. At the end of the day, this means that the person with bad credit will pay more to borrow the same amount of money as someone with good credit.

If you are seeking a loan for bill consolidation, this may be a good idea for you. This is an excellent way of repairing your damaged credit because it will in effect zero your revolving credit and the amount of the revolving credit that you're using is one of the major factors that determines your credit score. Just remember to always make your payments on time. Do not be tempted to borrow more than you need. You will have to pay this back with interest.

You may want to seriously consider whether taking a loan at this time is absolutely necessary for you. If you do not have an immediate need for this money, you will want to take the steps to first repair you poor credit. In the long run, this will save you more money than can be imagined. Using bank loans with bad credit honestly is risky business. Bad credit generally equals high interest payments and obviously that's going to get you into a lot more trouble.

Things To Learn About Credit

Overall, your strategy for getting a bank loan for bad credit is going to depend largely on the type of loan that you need to get. Since I really want to help you I have created some additional articles that should really help you to be able to find the right loan.

The first type of loan that people generally look for is the signature loan. Signature loans for people with bad credit aren't exactly the easiest loans to get. Your credit and employment are the only things that matter with these loans. If you have semi-bad credit you can expect to pay about 15% interest for these loans.

Auto loans for bad credit are a lot more common, because the bank has an asset they can take if you don't make your loan payments.

For those with bad credit, commercial mortgage loans generally don't work. This is the case because the loans are generally quite large. You will want to find a business partner if you need to take out this type of loan.

I just published another hub that tells the honest truth about bad credit bank loans. Take a look at it if you want an honest dose of reality.

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Comments 18 comments

coshesera sonier 6 years ago

how do i apply for a bank loan (personal) with my bad credit what is the web site.

Johnyboy profile image

Johnyboy 6 years ago

Pretty interesting. But who would give you attention if you have bad credit already?

HomeBuyerHelp 6 years ago

As the article said, there are still banks who offer loans for those people who had bad credit records on the past. This is considered as one step for them, in order to start repairing their credit score.

shafat tarbera 6 years ago

I waited for 7 months to get a modification which ended up to be a trial modification and was only suppose to last for 3 months and then they said they would modify it permanetly. Well guess what they lied and denied my modification after taking my money and said I did not qualify. That's it no specific reason but just that and wanted me to pay all the back payments and late fees or they would start foreclosure. Four days later as I walked in to work I received a memo from our HR department for financial assistant programs. Now I did put money upfront but it was escrowed and was not relesed until my loan was modified which took about 5 months and they stoped the foreclosure. I am now on a 2.125% for the next 2 years and then 3.675% for the 3rd year and fixed for the remainder of loan at 4.875%. I don't know where the number for the gentlemen who helped me but there main line is (888) 970-7999 think his name was Jon. Hope that's of some help to you folks!

raiz $56 6 years ago

Where can you buy bank repossessed cars? Usually these types of auctions occur in a government city auction or at a car dealership. Many times, you will be able to find the location of these auctions within a local newspaper or free classifieds sections. If you have time, go through the newspaper to find these advertisements. Another option is to actually call the bank itself and ask if they have any bank repossessed cars for sale. This is an unorthodox approach but sometimes you can get useful information from the bank about when and where auctions will be. Craigslist is another website that you should check out for car listings to see whether there are any bank repo cars within your local city. Finally, you can also use online services that specialize in government auction listings. These websites are great because they can provide you up to date information on local auctions and what type of vehicles are being sold. This will save you time and money and possibly save you money on a new used car. However, the last option is not free and typically the website charges a fee to use their information. However, it might be worth taking a look as the information might be able to save you hundreds of dollars on a bank repossessed car.

harrison fuller 5 years ago

motor cycle loan

harrisonfuller 5 years ago

please help me get a loan for a motorcycle thank you

marie 5 years ago

i need 2000.00 for moving how can i get one.

monicamelendez profile image

monicamelendez 4 years ago from Salt Lake City Author

Where do you bank coshesara? That's where I would start.

monicamelendez profile image

monicamelendez 4 years ago from Salt Lake City Author

In that situation Johnyboy you just have to get started in the right direction. I got a loan for a car from a bank a few years ago and my credit wasn't good. I simply established a solid six months of good credit first. Even though my score was horrible, I still was approved because I could show a turn around. My interest rate wasn't the greatest but it was decent. That said, I paid cash for my last car and that was obviously way smarter.

monicamelendez profile image

monicamelendez 4 years ago from Salt Lake City Author

Yes absolutely homebuyerhelp. Thanks for backing me up!

monicamelendez profile image

monicamelendez 4 years ago from Salt Lake City Author

My guess on shafat's comment is that he isn't telling the truth. People often post comments like that to try to sell their own services unfortunately.

monicamelendez profile image

monicamelendez 4 years ago from Salt Lake City Author

Usually banks have their own auctions and you can often find them posted on their sites. I would watch the sites of credit unions in your local area. There are a few that do auctions where I live. Where do you live raiz?

monicamelendez profile image

monicamelendez 4 years ago from Salt Lake City Author

motor cycle loan :) well thought out harrison hahahaha

monicamelendez profile image

monicamelendez 4 years ago from Salt Lake City Author

That's a lot of money to move marie! Where do you live?

dwachira profile image

dwachira 4 years ago from Nairobi, Kenya

Reading this article and others from your profile, i can tell you have massive knowledge in Banking and Credit. You have provided here vital information that can benefit many and not only people with bad Credit. Voted up and useful.

nirmal 4 years ago

Bad credit loan is difficult to get. Try to check the rate of interest and then go for one. Good article on Bad Credit Loans.

robert mitchell 4 years ago

I have had 2 kidney transplants and my credit is shot to hell due to my medical bills.I need a loan for 35000 dollars and which bank would asist me?Rob Mitchell

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