In today’s world of mass consumerism, being in debt and having poor credit as a result, is as common as owning a car! While bad credit continues to be a battle for many loan borrowers, you should also know that there are several different loans out there that specifically cater to individuals who are dealing with poor credit. Therefore, if you qualify as a bad credit borrower, you can still obtain personal loans for your immediate financial needs.
Bad Credit Personal Loans – How they can help you
In the earlier days, borrowers often found it difficult to obtain a personal loan when their credit score was less than perfect. However today, bad credit personal loans are making it possible for even people with poor credit to get the money they need. A poor credit personal loan can be used to finance a multitude of different things. The following are just some of the financial needs for which you can consider availing a bad credit personal loan:
- Home mortgage
- Home renovations
- Medical costs
- College tuition
- Travel expenses
- Car loan
- Debt consolidation
Secured vs. Unsecured Bad Credit Loans
Fortunately, your bad credit status does not always have to be an issue that can automatically disqualify you from being able to obtain personal loans. That being said, there are several different types of personal loan options that are also based on other factors such as the amount requested, your income, the purpose of the loan and who the lender is. As for bad credit personal loans in specific, there are generally two basic types of loans you can opt for, secured and unsecured.
These two types of poor credit personal loans can be easily distinguished from one another as each is significantly different. An unsecured bad credit loan is when you apply for the loan without putting up any collateral. On the other hand, a secured loan is when you apply for a personal loan with bad credit but use one of your tangible assets as security against the loan. There are also some additional characteristics that serve to separate these two bad credit personal loans from each other. For example, interest rates tend to be higher on unsecured bad credit loans because lenders lack any form of security or collateral should you for any reason default on your repayments. The lower interest rates are generally reserved for secured bad credit loans and borrowers who own their own home or property are typically the ones that most often apply for them.
No Credit Payday Loans
When financial emergencies come up, a no credit payday loan or cash advance can be a really good option for you to consider. Because credit checks are never required for approval purposes, you can obtain the loan absolutely hassle-free, which makes it really convenient! A no credit payday loan is typically availed on a short-term basis, for a period of 1-2 weeks and is required to be paid back when you receive your next paycheck from work.
There are only a few basic requirements you must satisfy in order to qualify for a no credit payday loan. In addition to being a US citizen, you also need to have reached the age of 18 or older, have a stable source of monthly income and have a valid checking or savings account in which the loan amount can be deposited. These eligibility requirements serve as the “standard” in the payday loan/cash advance industry, however keep in mind that they may also vary depending on the specific lender you ultimately choose to work with.