If you have an expense that needs to be paid off immediately, or just want to treat yourself to a vacation or other big purchase, don’t let bad credit stop you. This article will go over the ways you can get a personal loan, even if you don’t have a sparkling credit score. Keep reading below to see how you can make the most of your situation.
Installment Loans
Personal loans are usually structured as installment loans, which means you must repay the amount borrowed plus interest within a time frame. Personal loans also exist for people with a low to average credit score, called a bad credit personal loan. While these loans aren’t the ideal financial move to make, in some cases it’s the only choice people have. Let’s take a look at the two types of personal loans.
Secured
A secured personal loan is money you borrow based on the value of one of your assets. This asset is now the collateral for the loan if you can’t pay it back on the terms agreed upon.
Unsecured
An unsecured personal loan is money you borrow that is not secured with any assets. The lender can’t take your property if you default on the loan.
Assets
An asset is any item of economic value that you use to secure a loan. Common examples are a vehicle or house. But it’s important to always consider the potential loss of this asset and how it will affect your life should you lose it. Secured loans are easier to get however since the lender is taking on less risk.
Where To Find Bad Credit Personal Loans
Don’t stress too much if you can’t find a loan from traditional lenders. National and community banks have strict standards when it comes to lending financial services. Credit Unions are a good alternative because they aren’t as strict in their loan qualification process and cater to people with low credit scores.
Money Mutual is a popular online lender that secures loans for people with lower credit scores. Online Lenders similar to Money Mutual provide funding fast and offer flexible payment plans as well. So when you’re doing research on the best place to get a personal loan, keep online lenders in mind.
Overcome The Obstacles
We all have situations in life where we need to get financing as quickly as possible. Things happen that we can’t predict, so it’s important to know where you can turn for financial support. If you’re someone that has trouble getting loans through traditional lenders like banks, consider one of the personal loans described above. It could help you out in the long run.
But remember, you have to pay back any loan that you take out. And there is often a high interest rate attached to personal loans. Make sure to do your research to ensure you are getting a competitive rate. If you aren’t satisfied with the company’s rates, look into other providers until you find the best deal for you.
