A Consumer's Guide to Getting a Bad Credit Loan

Written by John Mussi

Here is a useful guide to getting a bad credit loan. If you're like countless others, then you may be struggling to get a bad credit loan. You may not know where to turn, or what options are available… or even what “bad credit” actually means or how it's determined. Below are tips on how to deal with bad credit, as well as how to get a bad credit loan.

What is bad credit, anyway? Obviously, if you fall behind on payments or make all of your payments late then it's going to reflect badly upon you. New lenders aren't going to want to offer you lines of credit or financing for purchases, and will instead try to make you pay up front for everything that you buy. This isrepparttar scourge of bad credit… which means that your past late payments or non-payments have been reported to a credit agency, and they have lowered your credit score as a result. The lower your credit score is,repparttar 149767 more of a risk lenders view you as… which is why it's so hard to get new credit lines once your credit is bad. Unfortunately, this also can make it much more difficult to improve your credit rating… after all, if you can't get credit then how can you show that you're much better with payments these days?

Getting a bad credit loan Luckily, there are lenders that will give you a bad credit loan. Often there is some sort of collateral required (meaning thatrepparttar 149768 loan is of an equal or lesser value to something that you own, and if you default onrepparttar 149769 loan thenrepparttar 149770 lender has a legal right to repossessrepparttar 149771 item and sell it), and higher interest rates are usually associated withrepparttar 149772 loan as well (meaning that you have to pay back more in interest than you would with a loan that has lower interest rates.)

A Beginner's Guide to Bad Credit Secured Loans

Written by John Mussi

Here is a useful beginner's guide to bad credit secured loans. If your credit is less than perfect but you find yourself needing money now, you might want to look into bad credit secured loans. If you're not sure what these are, bad credit secured loans are loans designed for people who are considered credit risks by many institutions. They're called “secured” loans because they require some sort of security deposit (also known as “collateral”), which helps to protectrepparttar lender against some ofrepparttar 149766 risk of lending. These loans allow you to getrepparttar 149767 money that you need without having to pay outrageous fees, and as long as you payrepparttar 149768 bad credit secured loan back on time then there's no real risk to your collateral.

Common types of collateral While collateral can be pretty much anything with a value equal to or greater thanrepparttar 149769 amount ofrepparttar 149770 bad credit loan,repparttar 149771 most common types of collateral are automobiles and real estate. With most bad credit secured loans, you don't even have to give up your collateral… you get to keep driving your car and can still live in your house, butrepparttar 149772 bank or other lender gains a legal claim torepparttar 149773 title orrepparttar 149774 deed so that if you don't repayrepparttar 149775 bad credit loan (also known as “defaulting”) then they can repossessrepparttar 149776 collateral and sell it to get their money back. Of course, with some types of collateralrepparttar 149777 lender might prefer to hold onto it untilrepparttar 149778 loan is repaid; common collateral of this type is jewelry, rare coins, or other small-but-valuable items. This practice helps to insure thatrepparttar 149779 property you're using as collateral isn't lost or stolen beforerepparttar 149780 time they would have to repossess.

Cont'd on page 2 ==>
ImproveHomeLife.com © 2005
Terms of Use