Types of Bad Credit Loans
If you have bad credit, you might think that the options for borrowing money are pretty much non-existent. It's true that people with bad credit are considered risky to lend to, but it doesn't mean that there aren't options for borrowing money and rebuilding your credit. There are actually a few common types of bad credit loans that will let you borrow money and start building a better credit score.
Personal loans are probably one of the most common types of bad credit loans. Sometimes referred to as payday loans or guaranteed loans, they are quick and easy to receive. One reason they are so quick is that there isn't a lot of information you need to provide to receive the loan. If you are at least 18 years old, are a citizen of the U.S. and can provide proof of your income, you most likely will qualify for a personal loan.
Personal loans are also called guaranteed loans sometimes. This term probably comes from the fact that they are really fast and easy to get. Almost anyone can qualify, including people with bad credit. The loans usually have a high interest rate since the people borrowing the money are usually considered high risk, but if you need money fast, personal loans can help. In order to qualify, you usually need to be at least 18 years old, provide proof of your steady income, and be a citizen of the United States.
If you plan to attend college, but you think you won't be able to get a loan because you have bad credit, a Federal school loan is still an option. These types of loans are considered bad credit loans because you can qualify for them if you have bad credit or even no credit at all. The government backs the loans making it less risky for lenders to loan to people without a good credit history.
Really, the main advantage to a secured credit card is to help you build your credit. By establishing a card in your name and making your monthly payments on time, you will improve your credit score. So even though secured credit cards don't really make any more money available to you, they are helpful for building a positive credit score which in turn will help you qualify for other loans in the future.
Finally, you might be able to borrow a large amount of money, even if you have bad credit, if you have something you can offer as collateral. Secured loans are issued to people with bad credit because you are required to put up something like your house or car as collateral. So even if you have bad credit, there are still options for you to borrow money and rebuild your credit score.
Personal loans are probably one of the most common types of bad credit loans. Sometimes referred to as payday loans or guaranteed loans, they are quick and easy to receive. One reason they are so quick is that there isn't a lot of information you need to provide to receive the loan. If you are at least 18 years old, are a citizen of the U.S. and can provide proof of your income, you most likely will qualify for a personal loan.
Personal loans are also called guaranteed loans sometimes. This term probably comes from the fact that they are really fast and easy to get. Almost anyone can qualify, including people with bad credit. The loans usually have a high interest rate since the people borrowing the money are usually considered high risk, but if you need money fast, personal loans can help. In order to qualify, you usually need to be at least 18 years old, provide proof of your steady income, and be a citizen of the United States.
If you plan to attend college, but you think you won't be able to get a loan because you have bad credit, a Federal school loan is still an option. These types of loans are considered bad credit loans because you can qualify for them if you have bad credit or even no credit at all. The government backs the loans making it less risky for lenders to loan to people without a good credit history.
Really, the main advantage to a secured credit card is to help you build your credit. By establishing a card in your name and making your monthly payments on time, you will improve your credit score. So even though secured credit cards don't really make any more money available to you, they are helpful for building a positive credit score which in turn will help you qualify for other loans in the future.
Finally, you might be able to borrow a large amount of money, even if you have bad credit, if you have something you can offer as collateral. Secured loans are issued to people with bad credit because you are required to put up something like your house or car as collateral. So even if you have bad credit, there are still options for you to borrow money and rebuild your credit score.
About the Author:
Trinity helps people to learn about loans, how to find a bad credit loan, and more specifically about personal loans for bad credit.
posted by Credit Counseling at
8:25 AM
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