Bad Credit Loan: Salvation or Damnation?

Written by dDawg


Here is a useful guide to Bad credit loan. Bad credit loan mean that you are taking out a loan that may depend on your credit history. Your credit history includes county court judgements, and defaults on repayments of previous loanor financial transactions. Torepparttar loan officer in your bank, this may mean that giving you a loan could be a risk because according to your history, you are more likely to have late or defaulted repayments.

However, some institutions may approve bad credit bank loan applications. Keep in mind that they may charge you a higher interest rate. If you have bad credit or poor credit history, you may have trouble convincing lenders to approve your loan.

You may increaserepparttar 149938 chances of getting approved by applying for a secured loan or by reducing your loan amount. Your credit history will be checked when you apply for a loan so lenders can assess your credit rating. This is one ofrepparttar 149939 most important factors for them to consider when deciding whether to offer you a deal. If your loan application is accepted you will be given a sum of money, which you will usually have to pay back in monthly installments over an agreed period of time.

Having a bad credit rating doesn't mean you are a financial disaster, but missing payments on other loan against you is a guaranteed way ontorepparttar 149940 credit blacklist. Other unexpected events such as divorce, or redundancies could also have a negative affect. But evenrepparttar 149941 most unlikely person could have a bad credit rating. You might be too young, or just may not have had any form of credit before.

What do you do if mainstream lenders don't want your business? If this isrepparttar 149942 case and you need a loan you should concentrate on firms that offer bad credit loan. Some lenders specialise in this type of loan, which is designed for people other lenders may not want to deal with because of their poor credit history.

These lenders generally specialise in making bad credit loan that are substandard by normal banking criteria, and thatrepparttar 149943 traditional banking community passes up becauserepparttar 149944 borrowers' previous credit is poor or there is not enough collateral.

Since these lenders make these substandard loan, financial regulators allow them to charge much higher interest rates than regular banks can charge.

Though these lenders make bad credit loan other lenders won't touch, each has its own acceptable criteria. One major advantage of using alternative sources of capital is that they may make you a loan when no one else will. And, of courserepparttar 149945 drawback is that you will pay a very high interest rate forrepparttar 149946 privilege of borrowing.

Interest rates on bad credit loan can be higher than other personal loan because ofrepparttar 149947 perceived risks to lenders, but they are a readily available alternative source of funding for people affected by poor credit ratings.

Home Equity Loan – Still a Better Idea Than a 401(K) Loan

Written by Charles Essmeier


Anyone who borrows money is always looking forrepparttar cheapest source of funding. That makes sense; no one wants to pay more in interest than is absolutely necessary. And anyone with a sizeable amount of debt, such as credit card debt or a student loan, would be wise to consolidate their debt with a lower interest loan. One source of such a loan is a 401(K) account, which many consumers may have through their employer. Sincerepparttar 149937 interest rate on Federal student loans rose on July 1, many students who missed that deadline may be wondering if consolidating through a 401(K) loan is a good alternative. Is it?

In a previous article, we have outlined several reasons why borrowing against a 401(K) account may be less favorable than using a home equity loan instead. The reasons includerepparttar 149938 fact thatrepparttar 149939 interest on a 401(K) loan is not tax deductible, and thatrepparttar 149940 borrower losesrepparttar 149941 ability for his or her investment to compound over time. If you have borrowedrepparttar 149942 money, it can’t earn interest andrepparttar 149943 cost over twenty or thirty years could be dear. In addition to those, there are other reasons why a home equity loan would be a better source of consolidation funds.

The 401(K) loan is tempting. There is no credit check,repparttar 149944 interest rate is usually favorable, and you are paying

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