Bad credit can be devastating, especially if you are in need of bad credit loans. In today’s faltering economy, many people have bad credit after job losses and layoffs, and the number of hours offered to work has been reduced by employers trying to reduce costs. Or perhaps you have been ill or injured, and have found yourself without a job because of frequent absences.
Whatever has brought on your bad credit standing, no doubt, like the rest of us, you too may need a loan from time to time. There are two best options for people with damaged credit – secured personal loans or guaranteed bad credit personal loans.
secured personal loan
Secured personal loans are short-term loans that allow you to borrow up to $10,000 and repay the lender with monthly payments. Most secured personal loans are written for terms ranging from 12 months to five years, depending on the amount you borrow and other circumstances. To avail a secured personal loan, you will need to pledge collateral to your lender.
Collateral can be in the form of your home, late model automobile, or other property that is worth more than the amount you want to borrow. Secured personal loans will accrue interest on the principal amount you borrow, making it essential that you only borrow the amount you really need to avoid paying additional interest costs.
guaranteed bad credit loans
Another option that is very popular among those with a faltering credit score is a guaranteed bad credit loan. A guaranteed poor credit loan is one of the easiest of all loans to be found in the market. Almost everyone can qualify for a bad credit loan regardless of past credit history, with 99.99% of all applicants approved under most circumstances. It may also be known as a payday loan, cash advance loan, or simply a cash advance.
To get it, you would write a post-dated check for the amount you want to borrow. The lender will hold the check until a specified period has passed, usually coinciding with your next due date to be paid. When that date arrives, you simply return to the payday lender to retrieve your check and pay the money you owed, or you do nothing and the lender sends the check to you for payment. Will deposit in the account.
No credit check is required to get a payday loan, and the only requirements are that you have an active checking account and a job in order to get the money you need.
Payday loans are usually written for no more than $1,000, but the lender will determine the amount you are eligible to borrow based on your take-home pay, or the combined take-home income of you and your spouse. Salary (if you have a joint checking account). Payday loans are slightly higher than other loans in terms of the interest you pay, but can really help bad credit borrowers who find themselves in dire financial straits.