In spite of their poor credit histories, many folks are in need of financial assistance in the recessionary and economically troubled times. Advertising is swamping the bad-credit loan markets leaving many consumers confused or uncertain.
Help Determining Status
Before a person with bad credit goes hunting for non-traditional lenders, it is a wise idea to test the waters amongst traditional lenders first. Make an application to a few credit unions or banks. See what they say when and if they reject you. You should probably check your credit score yourself as well to give you some insight on how lenders see you.
Help Finding Non-Traditional Lenders
The growth for bad-credit loans has been lead by the non-bank and non-traditional lenders. If you need to do business with establishments that are not brick and mortar financial institutions, you need some pointers to get you teamed up with a lender who is willing to work with bad-credit borrowers.
Better Business Bureau Files Help
Once you are certain traditional lenders will turn you down, the Better Business Bureau (BBB), old-fashioned as that may sound, is a good place to start your search for an accredited non-traditional lender. By checking a potential lender against BBB directories you will sift out any unsavory lenders. You will find ratings and records of customer complaints or customer satisfaction in their files regarding lenders.
Keep an Eye on the Rates and Terms Offered
Folks with bad credit cannot afford to get themselves into any more hot water. You need to get the best possible rates with the most comfortable repayment terms. Please read all the fine print, undiscovered fees could pop up and throw your repayment schedules into turmoil.
BBB Accredited Credit Unions
Most employee or company credit unions are recognized by the BBB. If you are employed with a company who has such an institution, these would be the best place to start your personal loan search. They may be more willing to cut you some slack rather than another institution where you would just walk in from the street. Just remember, even though you may be affiliated with them, your interest rates will still be high because of your credit scores.
If you do get past the cadre at the door, you will be invited to talk with one of their credit counselors to work out the deals of your loan. Be prepared to offer explanations about any bad marks on your credit reports. At this point, it will be determined whether you should apply for a secured or unsecured loan.
If the credit unions fall through, you might want to approach this lender who is not accredited by the BBB but has received many awards and citations for the excellence of their customer service and safety records. They are based in Orlando, FL and are also well known as providing one of the best online loan application experiences for bad credit borrowers.
Whether you find your loan by applying online or in a more traditional way, be sure you have totally committed yourself to repaying the loan and keeping your part of the bargain. And be sure and use the BBB search tool to find the best lenders.