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Sunday, February 1, 2009

Taking Out Guaranteed High Risk Personal Loans

By Trinity Manning

People that have really bad credit often believe that they arent going to be able to borrow extra money. When their car breaks down, or when their kids get sick, panic sets in. They dont believe that they have any options.

If you had great credit, you would definitely have plenty of options. Even though your credit may be poor, there are still plenty of ways that you can borrow money.

Guaranteed high risk personal loans are often known as payday loans. There are definitely some positives and negative aspects of these loans, but if youre really in a pinch, they can be a good way to go. Almost anyone can be approved for a loan of this type. Credit history isnt considered with this type of a loan.

These loans are also sometimes referred to as cash advance loans. Usually you can take out an amount up to what you normally get paid. The lender will often want to know exactly how much you make so that he can lessen his risk somewhat.

These loans present a significant risk for the lender, so the interest is generally quite high. Normal rates are ten to fifteen percent of the loan amount. Since the term is normally quite short, this interest is quite extreme if you calculate the APR.

If youre going to take out a loan of this type, you will want to make sure that you only borrow an amount that you can pay back on time. There are usually high fees if you dont meet your due date and since the interest is already extreme, it can put you in over your head very quickly.

The most important things to consider with these loans are as follows. Borrow a small amount and pay the loan back quickly.

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