Getting a Loan With Bad Credit

While it’s extremely difficult to get a loan with bad credit it isn’t impossible. Applicants with a bad credit history are generally turned down but that’s not the end of the world. There are still ways to secure a loan Never go for loans for the purpose of meeting expenses. You only want to go after loans if you have a way to pay it back. You need to have the means/plan to pay this money back or it will further mess up your credit score and history. With that being said the only time you should take out a loan if…
1. You want to quickly clear off a couple of credit cards.
2. You have a short-term financial obligation.
3. There is an absolute emergency!
Now once you have figured out exactly what you need your loan for the next step would be to layout all your options. Now remember you have bad credit so going to a financial institution for the loan is out of the question! Your alternative options include but are not limited to your friends, employer, family, non- traditional credit unions and last but not least credit unions. I’ve had great experience with credit unions.
Credit Unions
Credit unions don’t care about credit history but they do require collateral, this is not always the case but in most cases they will require it. If you know someone at a credit union you’re already step ahead of the game! This is where networking and being a people person really pays off. Remember credit unions are groups of financially well off individuals who are known for helping out the little guys in the world. Small business, students etc. As stated above collateral is collected at times this insures them that they will get there money back. That or they just keep what you put up for collateral. This is better than just simply being rejected like the financial institutions would.
Pay Day Loans
Ah the perfect solution for those in need of a small amount money in weeks or right on the spot! You are generally given a 2-4 week period to repay these small loans. The interest rate for these loans range from 15%-30%. The loans are limited to $500.00 per loan.
Secured Personal Loan
There are times when financial institutions will extend a personal loan but only if you can provide collateral. Property, stock, bonds, anything of value can serve Finance Tips Articles as collateral. The interest rates of these loans are known to be high so be careful. You don’t want to dig yourself a bigger hole than the one you are already in.
Important Tips
Always make sure you read and understand all documentation before you sign. Never sign simply because you see the dollar signs otherwise you could really screw yourself Personal Finance Tips 2019 up in the end. Also, it is extremely important to consider the rate of interest you will be charged make sure its really something you can afford to pay back.
Note that repairing your credit history is vital so its best to seek out a financial counselor. These services are generally free of charge and are available at just about every bank.

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