answersLogoWhite

0

The economic downturn has left many consumers with damaged credit. Naturally, obtaining a loan with damaged credit is more difficult, but it is possible, especially if you are willing to make some sacrifices and take a lower interest rate.

First option: personal loan from a local bank

Before researching any other options, head to your bank and ask to speak with a representative. A bank loan usually offers an excellent interest rate relative to other loans available to consumers with the same credit score. If the bank offers you a secured loan, it is often in your best interest to take it, but make sure the collateral is something you can afford to lose should you default.

Second options: credit cards and home equity lines of credit

If the bank wants nothing to do with you, your next best option is to use credit cards or a home equity line of credit. Credit card interest rates can exceed 30 percent, but even with the new mandates of the CARD act, they have generous minimum payments compared to other credit products. Once you are back on your feet, you can pay more than the minimum to avoid amassing large amounts of debt. Home equity lines of credit may prove useful as well, but exercise caution. Defaulting on this type of credit means foreclosure.

Third options: payday loans, title loans, pawn shops

There are a few credit products designed for those with bad credit that may work for you as a last resort. Payday loans loan money until the next payday, but the fees make their effective APR extremely high. Title loans are a loan secured against a car title, but like payday loans, the interest rates are poor, and using a car as collateral means that defaulting may make it impossible to get to work to earn more income. Pawn shops provide better APR and allow the borrower to choose his collateral to an extent, but many pawn shops have minimal regulation.

The subprime credit market is full of scammers and charlatans, so do not enter into a loan contract until you have done thorough research and exhausted all other options, such as borrowing from friends, family or the local bank.

User Avatar

Wiki User

14y ago

What else can I help you with?

Related Questions

Where can one compare unsecured bad credit loans online?

One can compare unsecured bad credit loans online by looking for the website Personal Loans For Bad Credit. There are other sites out there, but this site can do the comparisons of bad credit loans.


Are there any legitimate personal loans in North Carolina for people with bad credit?

There are many legitimate personal loans in North Carolina for people with bad credit. Most of them are referred to as payday loans and they do not consider your credit rating.


Where can one get a home mortgage loan when one has bad credit?

There are many companies that can be found online that specialize in bad credit loans. One could use Kiana Bad Credit Loans, EZ Bad Credit Loans, Bad Credit Mihouse, Bad Credit Personal Loans and Money Supermarket.


What companies offer personal auto loans to consumers with bad credit?

Some companies that offer personal auto loans to people with bad credit are EasyAutoLenders, CarsDirect, and AutoCreditExpress. All of these companies have highly trained staff that can help anyone with bad credit.


What are some businesses that give unsecured personal loans to people with bad credit?

Simplified Bad Credit Loans, and Unsecured Personal Loans for Bad Credit are two of such businesses. The loan cap is usually as low as $1,000. These institutions operate by creating a forum for many lenders to compete with each other to win applicants.


Where can one who has bad credit get personal loans?

One who has bad credit may get a personal loan from the lender "Chron". They do not perform a credit check and try to help people who are struggling get ahead.


Where can a person find information on personal loans for people with bad credit?

The PR News website has information on bad credit loans with links to those companies that provide them. One can find information and rates for bad credit loans on the comparison website Go Compare.


Where can one obtain personal loans for bad credit?

Several companies specialize in offering personal loans on bad credit. Alpine Credits, Car Title Loans as well as Capital One offer these services. Beware, often it is very costly to have such a loan.


What loan lenders offer deals to consumers with bad credit?

BAD CREDIT LOANS DEALS Bad Credit LoansBadCreditLoans provides an easy and convenient way for people to be matched with a personal loan from up to $5,000. i really liked and here is your link cutt.ly/9jgX1VZ


Where can someone fill out an online credit card application for bad credit?

One can fill out an online credit card application for bad credit at DKB Germany website, Credit Net website and Loans for Poor Credit. Other good places are Barclay Card and Personal Loans for Bad Credit.


What reputable companies offer loans to people with poor credit?

eLoan Personal offers loans to people with bad credit and is fairly reputable. Also reputable is Citifinancial and they too offer loans to those with poor credit.


Where can you get a unsecured personal loan with bad credit?

Yes, you can get Bad Credit Loan. A bad credit history is like having contracted an infectious disease. At least this is what most lenders perceive. Any requests for personal loans by people with a bad credit history are generally declined.