Bad credit can be devastating, especially if you need a bad credit loan. In today’s struggling economy, many people have poor credit as a result of job loss and layoff, and the reduced number of hours they are allowed to work per employers trying to cut costs. Or maybe you got sick or injured and found yourself out of a job due to frequent absenteeism.
Whatever the cause of your bad credit situation, you will undoubtedly, like all of us, need a loan from time to time. There are two better options for those with bad credit: the secured personal loan or the secured personal loan for bad credit.
Secured personal loan
Secured personal loans are short-term loans that allow you to borrow up to $10,000 and repay the lender in monthly installments. Most secured personal loans are taken out for terms ranging from 12 months to five years, depending on the amount you borrow and other circumstances. To qualify for a secured personal loan, you will need to provide collateral to your lender.
Collateral can be in the form of your home, a late-model car, 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, requiring that you only borrow the amount of money you really need to avoid paying additional interest charges.
Loan for bad credit guaranteed
Another option that is very popular among those with bad credit ratings is the bad credit secured loan. A secured loan for bad credit is the easiest loan to obtain on the market. Almost anyone can qualify for a bad credit loan, regardless of credit history, with 99.99% of all applicants being approved in most circumstances. It can also be called payday loan, cash advance loan or simply cash advance.
To receive it, you will write a post-dated check for the amount you want to borrow. The lender will hold the check until a specified period of time has passed, usually coinciding with your next scheduled payment date. When that date arrives, you simply return to the payday lender to collect your check and pay the money you owe, or you do nothing and the lender will deposit the check into your account for payment.
No credit check is required to receive a payday loan, and the only requirements to get the money you need are that you have an active checking account and a job.
Payday loans are generally no more than $1,000, but the lender will determine the amount you are eligible to borrow based on your homecoming salary or the combined homecoming salary of you and your spouse (if you have a current account spouse). Payday loans are a little higher than other loans in terms of the interest you’ll pay, but they can really help borrowers with bad credit who find themselves in dire financial straits.
By Jess Peterson