When looking for a personal loan for bad credit, it is important you know what your borrowing options are, the fees the lender will charge, as well as the payment terms and interest rates. Here are some tips for finding signature loans when you don’t have perfect credit.
Types of unsecured loans include:
- personal loan
- signature loan or note (short term, usually 3 months)
- credit cards
- payday loan* (Up to $1,000, payable at next payday with postdated check from your account, approximately 8-15% fee.)
These unsecured loans are listed in order of the interest rate charged. Personal loans usually have lower interest rates than the other three. Often payday loans charge a processing fee (usually between $15-$50) for what is basically a one or 2 week loan.
The amount of money, and high interest rates, really make credit cards and payday loans the worst way to consolidate debts with borrowed money.
Finding The Right Loan
We recommend you apply to standard lenders, local and online, to obtain your personal loan for bad credit risks. Don’t pay a fee to apply, or join a membership promising a list of lenders who will loan you money. You will only be throwing good money away!
Debt Consolidation Loans
One of the most important things to remember, when considering borrowing money, is to NOT get a loan that will put you in a worse situation than you are already in. Look at the annual interest rate, how the loan interest is calculated, and what penalties and fees would be applied for late payments, application, etc.
If the debt you are paying off has a lower interest rate, lower payments, etc., then it is NOT worth it to borrow on a personal loan for bad credit to pay that debt off. Remember, only borrow if you will benefit from the new loan.
Consider refinancing your car, truck, or recreational vehicle to lower your payments. Refinanced auto loans can save your budget in hard times.
If you are unsure, or find the benefit of the loan does not make it worth your while, then consider getting a mortgage or home equity loan instead.
Also, if you have a lot of debt, you might want to consider a debt relief service instead of a loan.
Get out of debt and plan ahead for emergencies so you don’t end up like Kyle did:
His money being denied, Kyle had to struggle without a vehicle for multiple months until he had received enough money for the repairs. He did so by taking a second job.
The second job helped him earn the money he needed but in return he lost precious time away from his family. He also did not like his second job and became very stressed, which in return caused problems at home.”
Get The Best Personal Loan For Bad Credit Risks
We recommend you use the loan services for credit and debt management loans so you are not throwing good money after bad. Keep track of your loans and payments, get the best interest rates you can, and also look to minimize the out of pocket fees for incurring a personal loan for bad credit risks. Yes, you can get good rates on personal loans if you do your homework.
Want to lower your monthly car payment? Refinance your car and save. Consider refinancing your existing vehicle loan at the best rates, you will be surprised at how much you can save. Refinance with our new lower rates!
Out of Cash? Get an advance and get cash wired to you!
What are the Loan Alternatives?
Debt Consolidation Service or Consumer Credit Counseling Services are very similar and the number one recommended way to obtain immediate debt relief. Knowing how to take advantage of debt consolidation really isn’t that hard.
We highly recommend you check out credit counseling, especially if you aren’t sure which way to turn. Click here for help.
Also, you may want to consider debt settlement as an alternative … you can negotiate what you can afford then as you payoff each negotiated debt, it won’t be long and you will find your debt is eliminated with debt settlement, plus you benefit with more options:
- Negotiate settlements of up to 70% of your debt,
- Reduce your interest up to 90% and create a single payment for all bills.