Personal loans have made our loves easier and more convenient in terms of financial problems during emergencies and other important needs. Getting a loan approved is easy. First off, it is essential that you gain the lender’s trust so as to be given a chance to loan the amount you need. After you’ve gained that trust, a continuous step you must take is to maintain that trust. Establish good ties with your lender and you’ll go a long way. One way to gain his/her trust is to give the feeling of confidence in you.
Knowing that you will be able to pay him/her gives your lender the feeling of security which will gain you his trust. So don’t apply for multiple loans at once. One of the easiest ways to get a cheap personal loan is to maintain a good credit rating. This may help you in future loan applications. Otherwise, you’ll end up looking for a bad credit personal loan with an adverse rating.
Bad credit ratings affect almost all transactions you make. You are more likely to get a higher APR and less likely to get a credit card. Also, this will cause mortgage repayments to be higher and leave you with a restricted range of deals. If you’re planning to rent a house or an apartment, this is also unlikely to be approved. Letting agencies do a thorough credit background check on those who are interested in renting houses from them. A bad credit would mean disapproval. You’ll probably get better chances renting directly from landlords. Another one is regarding mobile contracts. Of course it would be more difficult to get a mobile contract which means you’ll be facing a credit check and will be be charged with higher call rates.
It is worth knowing though, that all bad credit ratings are dropped after six years, giving you a chance to start over. But what do you do in case of emergencies and those six years haven’t gone yet? Here’s how to find a bad credit personal loan to answer your financial needs.
Though it is really difficult to get a loan with a bad credit rating, a bad credit secured loan might do the trick. This lets the borrower put all debts under one roof and spread payment over a longer term. The rate of interest is also lower here. Aside from finding a bad credit personal loan that could actually work for you, you could also get a prepaid credit card which doesn’t require any credit check. A regular credit card application could still be granted but for a higher APR.
If you are looking for more options, here are some tips on finding bad credit personal loans:
● Look into short term loans. These loans give you a chance to pay back the debt quickly before defaulting. However, these types of loans often charge a higher interest rate on people with bad credit than other with good credit ratings.
● Try Payday loans. Another short term loan which must be paid within a span of about two weeks.
● Consider Collateral loans. This is a type of loan wherein the borrower offers something for the lender to take in case a debt is unpaid. The borrower’s property offered to the lender is usually of high value, enough to pay for the debt left unpaid.
● Debt Consolidation loans. Debt consolidation companies allow borrowers indebted with a large sum of money to pay off the rest of their debts by lending them the amount needed and letting the borrower pay them back slowly with an interest rate, of course.
Of course there is nothing better than preventing such things from happen. It’s easier to avoid getting a bad credit rating than fixing one. It would be best to think twice and thrice over before applying for a loan. If you don’t really need it, then might as well save the opportunity to borrow money, hassle-free, when you really need it.