A Consumer's Guide to Getting a Bad Credit LoanWritten 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 is 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, 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 that loan is of an equal or lesser value to something that you own, and if you default on loan then lender has a legal right to repossess item and sell it), and higher interest rates are usually associated with 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 protect lender against some of risk of lending. These loans allow you to get money that you need without having to pay outrageous fees, and as long as you pay 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 than amount of bad credit loan, 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, but bank or other lender gains a legal claim to title or deed so that if you don't repay bad credit loan (also known as “defaulting”) then they can repossess collateral and sell it to get their money back. Of course, with some types of collateral lender might prefer to hold onto it until loan is repaid; common collateral of this type is jewelry, rare coins, or other small-but-valuable items. This practice helps to insure that property you're using as collateral isn't lost or stolen before time they would have to repossess.