Types of Bad Credit Loans
If you have bad credit, you might think that the options for borrowing money are pretty much non-existent. It's true that people with bad credit are considered risky to lend to, but it doesn't mean that there aren't options for borrowing money and rebuilding your credit. There are actually a few common types of bad credit loans that will let you borrow money and start building a better credit score.
If you want to know the most common type of bad credit loan, it is probably the personal loan. Personal loans are usually issued in smaller amounts and on a short-term basis. They are sometimes referred to as payday loans because they help get you money before your payday, but you usually need to pay it back by the next paycheck.
Personal loans are also called guaranteed loans sometimes. This term probably comes from the fact that they are really fast and easy to get. Almost anyone can qualify, including people with bad credit. The loans usually have a high interest rate since the people borrowing the money are usually considered high risk, but if you need money fast, personal loans can help. In order to qualify, you usually need to be at least 18 years old, provide proof of your steady income, and be a citizen of the United States.
Most lenders don't check your credit history if you are applying for a government student loan. If you plan to attend school and need to borrow money, a government school loan is the best way to go not only because they will issue it to you even if you have poor credit, but also because the interest rate will probably be lower than you could find from a private loan.
School loans are a good option not only because they are readily available if you have bad credit, but also because they are usually issued with a low interest rate. For people with bad credit, loans with low interest rates are almost impossible to come by. Government guaranteed school loans make loans with low interest rates a possibility.
For people with bad credit, opportunities to borrow money might decrease. However, there are still ways for you to be able to borrow money and improve your credit rating. Some of these common bad credit loans might be the answer to your financial struggles.
If you want to know the most common type of bad credit loan, it is probably the personal loan. Personal loans are usually issued in smaller amounts and on a short-term basis. They are sometimes referred to as payday loans because they help get you money before your payday, but you usually need to pay it back by the next paycheck.
Personal loans are also called guaranteed loans sometimes. This term probably comes from the fact that they are really fast and easy to get. Almost anyone can qualify, including people with bad credit. The loans usually have a high interest rate since the people borrowing the money are usually considered high risk, but if you need money fast, personal loans can help. In order to qualify, you usually need to be at least 18 years old, provide proof of your steady income, and be a citizen of the United States.
Most lenders don't check your credit history if you are applying for a government student loan. If you plan to attend school and need to borrow money, a government school loan is the best way to go not only because they will issue it to you even if you have poor credit, but also because the interest rate will probably be lower than you could find from a private loan.
School loans are a good option not only because they are readily available if you have bad credit, but also because they are usually issued with a low interest rate. For people with bad credit, loans with low interest rates are almost impossible to come by. Government guaranteed school loans make loans with low interest rates a possibility.
For people with bad credit, opportunities to borrow money might decrease. However, there are still ways for you to be able to borrow money and improve your credit rating. Some of these common bad credit loans might be the answer to your financial struggles.
About the Author:
Trinity helps people to learn about loans, how to find a loan for bad credit, and more specifically about personal loans with bad credit.
posted by Credit Counseling at
4:46 AM
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