The Scoop on Bad Credit Personal Loans

by: Nadine Langlois


If you have a situation where you need extra money there is always someone available to assist if you spend some time looking. By the way, having a poor credit score can be a result of your own actions, either accidental or deliberate. It could be that you missed a credit card payment due to an unforeseen situation. Nevertheless, you do have a chance to improve your financial status.

These bad credit loans may be used for other situations and not necessarily debts, so it could be used for an emergency expense that has arisen like medical fees not covered by insurance or a wedding for example. It may be that you would like to improve your credit history and do not actually need the money but taking out a loan and repaying it will help improve your credit status.

There are two options available, secured and unsecured loans, but with the secured option the amount of loan will be greater, up to 150,000 dollars and the repayment period can be extended to a period of twenty five years. Whereas with an unsecured loan, the maximum amount that can be borrowed is fifty thousand dollars and the repayment term reduced to a maximum of ten years.

There will, however, be either a home or car, for example, used as collateral for the loan and this will result in the lender offering the loan at a lower interest rate; albeit, the borrower could lose their possessions if they fail to make their repayments. However, the unsecured loan route offers no protection for the lender and the interest rate is higher so if interest rates are an important aspect, the best course of action is to find a lender with the lowest unsecured rates.

Internet research into bad credit loan companies can even provide certain lenders who will take on applicants who have serious debt problems and previous court judgments against them. It must be said that the number of lenders willing to arrange a loan under these circumstances is far fewer than normal so you may find that to get a loan that fits your pocket; you may need to carry out the application online.

The good thing about bad credit loans is that you will probably still be able to fulfill your financial obligations without the poor credit score getting in the way. If you use an online facility, you will not even have the humiliation of sitting in a bank begging for necessary funds.

This is an ideal opportunity, if you grasp it, to completely rebuild your poor credit history whilst also clearing other debts or paying for something important.