- Personal Finance»
- Mortgages & Loans
Have Bad Credit But Need A Loan, No Problem!
Get Loans Even With Horrible Credit
We've all felt helpless when hearing "I have bad credit but need a loan" but it is not all hopeless! Yes, it is a lot more difficult to acquire a loan especially personal loans if you have poor credit.
Most have to resort to loan sharks who charge exceptional premiums for the additional risks they face of lending a loan to borrowers with bad credit and is very easy to fall into their traps if you are not careful.
Getting loans with a bad credit leaves us with a very limited option and it is much expected that large commercial banks will deny our applications unless there is a guarantor or we offer collateral is be do not repay our loans; but thankfully there are certain different options left such as specialized mortgage companies for people with bad credit and concentrate on mortgages for poor credit borrowers.
Find the best rates
You may instantly accept the first lend you get and not care about the absurd interest rates. Do not do this as there is bound to be better offers worth checking out. Read the small print and compare between at least 2 or 3 other accept applications for your loan. Go into detail about the repayments they demand and the interest rates you'll have to pay. Ask about any transactional or hidden fees they charge or early termination penalties.
There is no point wasting time on large commercial banks as they will turn down your loan as soon as they find out about you bad credit rating. Save the time on finding very specialized and specific lenders that expertise on your situation. For example, if you need a home loan, you would try a specialized bad credit mortgage broker and not bad credit auto refinancing. This is also vice versa, if you are looking for a secured personal loan with bad credit, you would not go to your bad credit mortgage broker as in example 1.
It is worth noting that credit unions take into account more than just your credit rating so are also worth looking into. They check your current equity and income so there is still a possibility to get the much needed loan even with bad credit.
Make Yourself Look More Worthy
It is a lot easier and reasonable to provide and offer collateral if you need a loan but have bad credit. Collateral is the act of offering an item that the lender has the right to take if you end up not being able to pay back the loan. As a result, lenders often overlook your bad credit rating and accept your loan as there is very little residual risk since they can possess your pledged item.