If you have bad credit and you need cash now for life's little emergencies, chances are you have been searching for a source who will give you a second chance. There are many creditors and lending institutions who offer bad credit loans to those who want to improve their credit score while getting the cash they need for purchases that require their immediate attention.
Payday Loans, No Credit Check
The most common bad credit loan is the payday loan. For a small fee, the payday loan store will hold a post-dated check for you in an amount that can easily be repaid on your next payday. You can borrow as little as $ 100 or as much as $ 1500 with a payday loan, depending upon your income and budget. Payday loans are the easiest type of loan to obtain because they require absolutely no credit check.
Payday loans are also the fastest type of loan to get because they require a minimal amount of paperwork. Online payday loans can be deposited into your checking or savings account in as little as a few hours after your apply. The downside of payday loans is that they do not report to the major credit bureaus, so they can not be used to improve your credit. Non-payment of payday loans, however, can damage your credit tremendously.
Bad Credit Personal Loans – Secured or Unsecured?
If you are looking for a bad credit personal loan, the most common type is the secured personal loan for bad credit. This loan is secured by collateral that you put up against the loan; most commonly, real estate, automobiles, boats, or recreational vehicles make excellent collateral. You can also apply with a cosigner. Your cosigner should have good credit and be willing to stand good for repaying your loan should you fail to repay.
An unsecured personal loan is the hardest to obtain, but there are lenders who specialize in this type of bad credit personal loan. Be prepared to pay a slightly higher interest rate than those with good credit; however, this extra interest is a good investment because having an unsecured personal loan in good standing is a great way to improve the appearance of your credit file.
Bad Credit Automobile Loans
If you are looking for bad credit vehicle financing, there are a multitude of online bad credit auto loan processors. Because the vehicle (car, truck, SUV, motorcycle, or RV) that you purchase is considered collateral, obtaining a bad credit auto loan is typically easy. You may be asked to make a small down payment; even that is not required by all lenders. This type of loan may have a higher interest rate for borrowers with damaged credit, but can be easily financed once you have established a good payment history with your bad credit auto lender.
Bad Credit Student Loans
For students with bad credit, the bad credit student loan can help to pay for things like tuition, books, room and board, clothing, lab fees, or other things that a traditional financial aid package or government-insured student loan does not cover. The bad credit student loan application is approved faster if you have a cosigner on the application with you. There are lenders, however, willing to take a chance on students who want to get past their bad credit history.