What You Need to Know about Bad Credit Personal Loans

July 31st, 2017 | Author:

[G]etting a personal loan is an option when you need money for an unexpected expense, to make a purchase or for other expenses. Some people use it to finance a vacation, wedding or other event. However, if you have bad credit, it can be difficult to qualify for one of these loans.

Luckily, there are lenders that offer bad credit personal loans for those with less than perfect credit. The question is – are you really lucky if you qualify for one of these loans?

Bad Credit

If you have bad credit, you are limited on what loans you can get approved for. Lenders who specialize in loans for people with poor credit take on extra risk. To compensate, they must charge a higher interest rate in case you don’t pay back the loan. However, some lenders charge a ridiculous amount of interest because they know you need the money and can’t go anywhere else.

Some lenders will charge 30 percent or more for personal loans. While it is a lower interest rate and more flexible terms than what you get with a payday lender, it isn’t always the smartest choice.

Not everyone with bad credit will be approved. Most lenders say that almost everyone will be approved or that everyone who meets certain criteria will receive a loan. However, there are those who will not qualify, especially if they have had a bankruptcy or other major derogatory information on their credit report.

Should You Get a Bad Credit Personal Loan?

If you can avoid it, the answer is no. Work on your credit, so you can qualify for a traditional loan with better interest rates. If you have an expense that you absolutely have to pay, shop around for lenders who specialize in bad credit loans. Not all of them are alike. Some will charge a slightly lower interest rate or offer lower payments.

Be careful when choosing a lender for bad credit. Make sure you can afford the loan before you agree to anything.

Newest Answers

Big Changes Coming to Credit Reports

August 18th, 2017 | Author:

[I]f you have a bad credit score, you may benefit from the changes coming to credit reports soon. If you’re one of the lucky ones, you’ll see your credit score improve. In fact, it is expected that up to seven percent of those who have credit histories could see a benefit. What Changes Most civil […]

Continue Reading »

Be Realistic When Budgeting to Get Out of Debt

August 17th, 2017 | Author:

[Y]ou’re deep in debt and you want to pay it off to improve your credit score and to make life simpler. You want to pay it off as quickly as possible, which means making some major changes in your finances and life. Many experts tell you to stop spending any more money than you have […]

Continue Reading »

3 Ways You Can Waste Your Money

August 11th, 2017 | Author:

[I]f you’re trying to become more financially stable and improve your credit rating, you must be careful with how you spend your money. While you don’t want to give up everything fun in life in order to be frugal, you also want to avoid wasting your money on unnecessary expenses. Here are three ways people […]

Continue Reading »

Starting Over from Bad Credit

August 9th, 2017 | Author:

[Y]ou hit rock bottom with your credit. All of your accounts went to collections and your car was repossessed. You don’t even want to check your credit score because you know it’s bad. While the situation might seem hopeless, you can turn it around. Once you’ve lost any credit worthiness, you are ready to work […]

Continue Reading »

How to Talk to a Boyfriend/Girlfriend about Their Credit Rating

August 7th, 2017 | Author:

[I]f you’ve been dating someone for a while, you may be getting serious. Before you start dreaming about the perfect wedding day or what life will be like with 2.5 kids and a dog, you need to know you’re on the same page about important issues. While many people think nothing of talking about how […]

Continue Reading »

3 Ways Credit Matters to Everyone

August 4th, 2017 | Author:

[Y]ou pay everything with cash. Your motto is “If I can’t pay cash, I can’t afford it.” That means no credit ever. You may assume that you don’t need to worry about your credit score if you don’t plan to use credit to buy anything. Unfortunately, credit isn’t just about loans and credit cards. A […]

Continue Reading »

3 Tips to Help Your Kids When They Have Summer Jobs

August 2nd, 2017 | Author:

[I]f your kids are old enough to take on a summer job, now is a golden opportunity to teach them about money and finances. If you start them out right, they will know how to handle money and financial responsibility for when they are earning a full-time income. Here are three tips to use this […]

Continue Reading »