Two Best Alternatives for Bad Credit score Loans

May 11th, 2012 by admin Leave a reply »

Incurring bad credit score is often a downer, specially if you are in need of money and could use a bad credit personal loan. It could happen because of several reasons. Although mostly, it’s very poor planning and lack of self-discipline to pay on time that lead people to be drowned in bad credit, sometimes it’s just that life has brought unfortunate events. Lots of people suddenly find themselves jobless because their company closed down. Or there had been health-related emergencies in the family. These events can seriously affect your finances.

Which is why you will need a loan in order for you to get out of your poor credit situation. However you feel that no one will lend you money due to your record. Now, please know that you still have hope because of bad credit personal loans. And there are actually two kinds which you can make an application for: the secured personal loan and the guaranteed bad credit personal loan.

Secured Personal Loan – a secured personal loan is really a short term loan. You’re allowed to borrow up to $10,000 but you are tied to making payments within a certain period, like 12 months. But the payment schedule could also be as much as five years based on the amount of the loan.
But in order for that loan to be granted, you need to have collateral, like your house or car. Loan providers require that the value of your collateral will need to be higher than the amount you’re going to borrow. So long as you pay your installments dutifully, you will not have a problem with your home being transferred to the lender’s name.

Guaranteed Bad Credit Loan – is also referred to as fast payday loan. This is a different kind of loan that’s popular among those with bad credit score. Practically everyone who applies for this loan gets accepted, irrespective of  their credit background. It doesn’t require collateral; however, you’ll need to issue postdated checks for your scheduled month-to-month payments. The only requirement for this loan is that you possess a regular job and a valid checking account.

Now you know that you can still have hope of securing a loan even if you have bad credit. Use the money wisely to ensure that you can  get out of debt.

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