How can you go about crossing the financial minefield to get a secured personal loan. According to your bank and all the online advertising, it sounds really easy.
Having security gives you a better chance as the bank can take away your asset that was pledged. A lot of people have no assets or do not want to risk it so they would rather pay higher interest because they have bad credit.
You need urgent cash to pay down some expense. In life your car breaks down or you have a sudden bill come in. The amount of cash is in the hundreds or even $1000.
If we all could have some back up money then life would be great but most Americans have very little put aside. To compound to the misery many also have bad credit. This is defined by a FICO score of 610 or less. So if you need a personal loan where can you look? The answer could be a personal loan for bad credit
These types of loans come in a few forms. Examples are installment loans, credit cards, bank loans, titles loans and some could say a payday loan is also a type of personal loan. The bad credit part is usually dictated by a higher interest rate
A bad credit score, less than 610, is not an obstacle to obtaining a personal loan. Our online personal lenders are used to issuing loans to people with bad credit. These lenders view your credit scores and past credit score history when making a decision to lend you cash. These lenders are a lot more approachable as they charge additional interest to mitigate the risk of bad credit.
You’re already very aware a secured personal loan no credit check (no hard check) will be tied more often than not to your property or other such collateral (things you own). So in this case you need to be completely certain, you can meet the payments comfortably. If you don’t you could run the risk of losing your property!
The difference between a direct no credit check personal loan lender and a broker is that the direct lender is assumed to have better rates. That could be so but when it comes to bad credit all interest is a lot higher than a bank. The ultimate factor is in the terms and conditions of your loan and on the lenders website. Check in the footer to see the APR charged before deciding on a lender.
You need to be very clear on your objectives so:
You can use real estate and even a car or a boat. You might also have financial investments you could possibly use. Banks in general like hard assets like a car or home. The more immovable for them the better.
You will need at the ready proof of your monthly income. Any documents you have will help, and of course, your employment situation needs to be secure for the foreseeable future. It is possible to get a bad credit loan, but a good score will help considerably in your quest to cross the finish line first! But you want no credit checks (i.e. hard checks) right?
‘The most sensible place to start would be at your own personal bank – you’ll probably get the best terms here as a regular customer. Having a no obligation chat won’t do any harm. Take a look at the various other options available to you as your ban’s terms may not be to your liking – in short it pays to shop around.’
It may sound obvious but the most important thing is the annual percentage rate or APR. The shorter the term you can get the better it will be in the long run. What you must do is ensure you understand all of the terms and the small print. There could be fees attached for things like late or missed payments.
In certain cases, you may be able to use the item you purchase from the proceeds of the loan – but be aware you could get into even deeper trouble if it all goes wrong. It’s called ‘Double Jeopardy’
There are many lenders who will take investments such as stocks and bonds as collateral. This can work well as you can still continue to earn money on them while the lender holds them as collateral.
Good luck with your secured loan. If you are looking for an unsecured payday loan for bad credit then look here.