Bad credit but need a loan? No problem at all, as the myriad of advertisements testifies. Although you may not appeal to the more reputable and established lenders, there are plenty of other lenders out there willing to advance you a loan. Fancy an instant loan with no need to apply in person and no need to grovel to a bank manager whilst explaining why you ran up your debts? No problem at all. Many lenders today are willing to consider your ability to repay their loan, rather than looking at your credit history, and the quickest and easiest way of applying is on line.
When you have bad credit and need a loan you will need a regular fixed income and a bank account, and be prepared to pay much higher interest rates than the standard ones. Providing you can meet this criterion though you shouldn’t have a problem obtaining an unsecured loan, which will suit better than a loan which requires collateral which you could risk losing.
There are several types of unsecured loans available depending on your needs. If you have bad credit but just need a quick loan which you will repay from your next wages, then you can secure an advance pay day loan at a high fee, instantly. These were designed to help people out of a temporary bind, such as needing instant cash to prevent a utility being disconnected, or to pay for an emergency car repair. You pay the loan back on pay day, plus the fee, and the matter is finished with.
Many people abuse these loans and end up taking out pay day loans to pay off pay day loans, and end up with vast interest fees. However used sensibly they are a quick fix solution for those needing a temporary loan when they have no where else to turn because of their bad credit history.
It is possible too to obtain an unsecured loan with much longer repayment terms, but again a high rate of interest is typically charged. These are most suited to consolidate debts into one fixed loan repayment, and thus reduce several debts and lenders into one basket. Although the interest rates are high they, may well be less than the total interest you already pay to several lenders, so can be beneficial. Again these can be easily obtained on line, and you can choose between different repayment plans. If you do opt for one of these unsecured loans then beware of any unnecessary fees on top of the interest charges.
These unsecured loans for people with bad credit have the advantage of giving you an instant decision, rather than worrying for weeks if you application will be granted. They should only be used for the scenarios outlined above as they are an expensive means of borrowing. Don’t fall into the trap of them increasing your overall debt, but work to pay them off as quickly as you can and try to improve your credit score so that future loans will be available at lower interest rates.