Guaranteed Bad Credit Personal Loans

Scam Artists Do Exist

Though guaranteed, no credit check loans are available and legitimate, not everyone who offers them is. Therefore, when searching for these loans you need to have your guard up and make sure that you look into a few factors before offering any personal information or making any deals.

One way to check out the lender you are considering is to see if their online business is backed by a physical presence and go into their office instead of using the computer. As an alternative, you can call that office and verify its location if it is too far away. Good online lenders will also have affiliations with professional organizations and will provide you with a verifiable business history.

Another option is to use other tools offered online as a means to check in on any lender you consider. State Attorneys General will have websites that list fraudulent companies and those with questionable complaints. Also, there are several online forums and the Better Business Bureau which can provide insight into the lenders you are considering.

Disadvantages of Guaranteed Loans

Even if the lender you find is legitimate, there are still some distinct downsides to choosing to use a guaranteed loan to get the cash you need. These include:

– Total amounts offered – guaranteed loans, or payday loans, are generally only offered in sums up to $1,500 for bad credit borrowers.

– Repayment terms – as the alternate name for these loans (payday loans) implies, the purpose of guaranteed loans is to act as a payday and you are expected to reimburse the lender once you actually do get paid.

– More loans can negatively impact your credit – one of the factors in determining a person’s credit score is their income to debt ratio. The more loans you take out, the smaller that ratio and the lower your credit score.

Understanding Long Term Bad Credit Loans

Bad Credit Lending: Special Circumstances

The idea of a good interest rate is even more complicated for those with bad credit. Basically, your credit is a major factor used to determine the interest rate that a lender will offer. It is important to know going into any lending process that any advertised interest rates for those with good credit will not be available for you. You do have additional options, however.

1. Take Your Time

First, if your need for money is not immediate, you can take steps that will improve your credit over time. This will help with your loan application in two ways. First, your credit will be better. Second, your efforts will reflect well on you as lenders see you as responsible.

2. Compare Options

Another option, for those more pressed for time is to make sure that you contact more than one lender. A general rule is to generate a list of 3-5 potential lenders and compare the rates and terms that they offer. Some may be willing to negotiate if they know what their competition is offering. Either way, you get a better picture of your ability in the lending world by talking to more than one person.

3. Use Collateral

Finally, you have the option of opting for a secured loan as a means to generate a lower interest rate. Secured loans are those that leverage the money that you borrow against real property such as your home or car. This way, if you default on the loan, a lender can fall back upon the value of your collateral. This means that they can repossess your vehicle or home.

Final Thoughts: Lending and the Internet

As I have clearly emphasized throughout this article, the most important tool that you can use in looking for a long term loan is the internet. There are so many lenders available today who will help you out depute bad credit. Use this variety to your advantage and make sure that you get quotes from many different lenders before deciding upon the long term bad credit personal loan right for you.

Personal Loans After Bankruptcy Helping Yourself

If you have filed for a bankruptcy, you are not the only. Due to the global economic crisis, the number of bankruptcy petitions being filed has increased. However, even if you file for bankruptcy, it doesn’t mean that you no longer have financial needs. With the present situation, more and more people are in need of financial backing to stand back on their feet.

But can you get a personal loan after filing for bankruptcy? Fortunately you can. Although a negative mark is placed on your credit rating because you filed for bankruptcy, it does not mean that you are no longer eligible to get a personal loan. It can be quite difficult to get a personal loan from the bank or from other lending firms, but there are lending firms that offer loan services that are tailored for individuals who have filed for bankruptcy.

If you need to get a loan after bankruptcy, then you should help yourself increase your chances of getting it. The things that you need to consider in order to get an approval are as follows:

Verifying your credit score

The first thing that you need to start with is to verify whether or not the lending company offers loan services to people who have previously filed for bankruptcy and what are the minimum credit score rating that they require. You should inquire about this information before filing for the loan.

Dealing with existing debts

After filing for a bankruptcy, it is imperative that you try to minimize having other debts if you plan on getting a loan. If you apply for a personal loan, while having a lot of existing debts can leave a bad impression on the lender. It would seem to them that you are unfit to handle your obligations, thus lowering your chances of getting an approval.

Restoring your credit rating

Through time, you will be able to restore your credit rating, as long as you pay your existing bills on time since your bankruptcy. If you have been paying your bills on time, this can reflect a positive rating on your credit score after two years. If you file for a loan by then, it would surely help you get an approval.

Advantages and Disadvantages of Online

It may feel like an online loan is such a great way to have money fast. However, together with the many advantages, it also has its downsides. So what are the advantages and disadvantages of an online loan?

Advantages

Let us first look at the benefits that you can enjoy when getting this type of loan.

1. Easy approval – Compared to other types of loan, it is much easier to get an approval. Online lenders often have low criteria which you can easily meet in order to get an approval. This can include having a stable source of income, a bank account and being of legal age.

Even if you have bad credit, there are online lenders that offer online loan services that are tailored for your needs. If you apply for a loan from the bank with a negative credit rating, your application will most likely end up rejected.

2. Less hassle – The tiring part when applying for a loan from banks and other institutions are the paper works that you have to submit and fax to them. You will need to submit the right credentials in order to get a loan approval. However, when you apply for an online loan, you don’t have to undergo the same tiring tasks. You will only need to fill up an online form and you’re done.

You no longer have to wait in line or travel personally to the bank or other institutions in order to apply for the loan. This saves you both time and energy, as you can do it comfortably in your own home with your computer.

Disadvantages

Although there are a lot of advantages that may make an online loan application very attractive, it also has its downsides.

1. High fees and interest rates – Professionals would advise you not to get this loan, unless the need is urgent. Online loans have higher interest rates and fees, compared to normal loans.

Aside from the high interest rates and fees that you have to pay as you apply for the online. You will also have to pay a fee if you are late in your payment. Most late repayment fees that are charged by online lenders are quite great that they can reach up to double or triple the amount that you have borrowed.

2. Short repayment course – Normal loans from banks and other institutions can give you a repayment plan that divides your debt payment in a long span of time. Repayment can be done within the span of a year or two when getting a normal loan. An online loan however, requires you to settle your debt within a shorter span of time. it can be within two weeks or a couple of months.

3. Vague terms and condition statement – In some loan services, there may be certain terms and conditions that place you in a high risk situation. This is often intentionally hidden or made unclear, since they don’t want you to know about it.

Bad Credit Personal Loans Are Easier

The Reality of Bad Credit

No matter the reason for your poor credit score, an unexpected emergency, youthful indiscretion, or poor choices overall, the reality of what this means is essentially the same. Basically, where you go looking for a personal loan will dictate how easy it is to get it and what terms will be offered to you, but these terms will not be good.

Basically, people with bad credit who need a personal loan present a risk to many lenders. This is because your poor credit history makes it difficult for them to know whether you will pay them back on time. Therefore, the deals that are offered to those with bad credit are not as good as those with higher scores.

A Cosigner: Your Best Tool to Help You Get a Loan

Because of the risk posed by your poor credit score, finding a cosigner to help you get the loan you need is your best bet in terms of getting enough money at the right terms and interest rates. However, choosing a cosigner can be tough. The person who cosigns your loan needs to have a good or great credit score and be willing and able to step up and make the payments for you, should you default on your loan.

This is why it is important to do your research before approaching someone to cosign a loan for you. Make sure you have a plan of repayment and that you openly discuss your financial past, present and future with this person to make sure that you are on the same page and have a sense of trust.

The Value of a Cosigner

You may be wondering why it is so important to have a guarantor or cosigner for your personal loan. The simple reason is that lenders are much more willing to work with you if you can produce this person for two reasons. First, it reduces their risk. Second, showing them that someone else believes in your ability to pay back this loan and turn your financial life around is a huge incentive for the lender to trust you and think the same.

Ultimately, taking a loan of any amount of money for any reason is a big decision. If you have bad credit and need a personal loan, then it is important that you know your abilities to obtain such a loan and make sure that you look into the options presented by a cosigner in order to ease the interest burden and/or raise the principle amount. With help, it is possible to get a personal loan with bad credit.