In these strained economic times, most of us are keeping a closer eye on our pocketbook. Even with the best of budgeting, you may find yourself short of cash.
You may need a personal or payday loan for short term needs, financing for a new car, or a refinance loan for your home.
Bad credit loans are still possible, but do your homework before signing on the dotted line.
Unsecured Personal Loans
Many people in these poor economic times end up with more month than money, and the last few days before payday, are running on empty. Personal loans may be secured or unsecured.
With a secured loan, the borrower needs to have some collateral, such as a car, home, or land, and are much more likely to have the loan approved, even with bad credit. Unsecured personal loans are guaranteed with just a signature, and the lender will have more doubts about your ability to pay the loan back.
Be aware that if you miss a few payments, you could be on foot, or out in the street.
Cash Advance and Pay Day Loans
These loans are becoming more popular as people become more desperate for a way to pay the bills. You go to the lending firm, apply for the loan, and you leave a check with them for the amount that you borrowed. A date is set for repayment, and the lending firm deposits the check on that date.
Problems arise when the repayment is due, and you have no money to pay it, so you borrow more money, and a new repayment date is set.
By repeatedly rolling the amount over, your debt and interest rates become so high that it’s next to impossible to pay it.
Bad Credit Auto Loans
With the economy in the tank, lenders are seeing more people with bad credit, and are more willing to work with them. You may be tempted to get your financing with the dealership, but this is not the best idea.
The dealership gets a cut of every approved loan, so by cutting them out of the deal, you end up with lower payments and interest.
Bad auto credit loans are advertised heavily on the internet, but you may pay a higher price, and higher interest.
Bad Credit Mortgage And Home Refinance Loans
Mortgage loans with bad credit were once unheard of, but with widespread unemployment, and a sour economy, some lenders are trying to be more flexible.
Beware of bad credit loan managers who may stick you with a higher interest rate, knowing you’re desperate. Work with a mortgage broker who can negotiate a better deal with the lender.
Refinancing your current mortgage loan may improve your financial situation, and it’s still possible to get mortgage loans with bad credit. Research the internet to find lenders with competing prices. You only have to enter your personal information one time, and wait for the multiple calls back.
You Can Still Qualify For Loans With Bad Credit
Don’t let bad credit keep you from improving your financial situation. Stand up for yourself, and try to negotiate a better interest rate.. Read the fine print on any document, and don’t be afraid to ask questions.