Poor Credit Loans
If you have poor credit and are in need of a loan you may think that borrowing money is out of your reach due to poor credit. Well, there is good news for you: Poor credit loans are available and there are lenders eager to help you out. Do you have poor credit? Do you need money? If so, a poor credit loan could be an attractive option for you.
Let's face it: you need to borrow money but your credit stinks. Who on earth would want to lend money to you? Your bank thinks that you are a deadbeat and your credit score is about as low as it gets. Fortunately, not all financial institutions have a bad attitude and some are willing to work with you in the form of a poor credit loan.
A poor credit loan is advantageous in that it opens up an option not available everywhere. Quite frankly, someone is willing to lend you some money, but with a few strings attached:
You may have to pay an application fee which could be later applied to your poor credit loan should be approved for your loan and decide to go with it.
Your annual percentage rate will be several points above the industry average. For example, if the going rate for personal loans is 12% figure you'll pay 16 to 18 percent for your loan.
Your poor credit loan may not encompass all of your debt if that is the reason you are financing. A poor credit loan may be available only to cover certain debts or for a specific purpose such as a loan to purchase furniture. Make certain that you understand the parameters of the loan before agreeing to the terms.
Also be aware of a default rate kicking in should you be late even just one time. You may have to pay a one time penalty for being late and you could find that 18 percent interest rate jacked up to 24 percent or more if you are late.
When shopping for a poor credit loan compare rates and offers as no two offers are the same. Some lenders will want to have access to your checking account for automatic deductions which would mean that you must keep enough money on hand to avoid overdrawing your checking account.
Finally, a poor credit loan could do something that nothing else can do: restore your credit rating. Yes, by successfully paying off your debt on time you could see your once tattered credit rating improve.
Let's face it: you need to borrow money but your credit stinks. Who on earth would want to lend money to you? Your bank thinks that you are a deadbeat and your credit score is about as low as it gets. Fortunately, not all financial institutions have a bad attitude and some are willing to work with you in the form of a poor credit loan.
A poor credit loan is advantageous in that it opens up an option not available everywhere. Quite frankly, someone is willing to lend you some money, but with a few strings attached:
You may have to pay an application fee which could be later applied to your poor credit loan should be approved for your loan and decide to go with it.
Your annual percentage rate will be several points above the industry average. For example, if the going rate for personal loans is 12% figure you'll pay 16 to 18 percent for your loan.
Your poor credit loan may not encompass all of your debt if that is the reason you are financing. A poor credit loan may be available only to cover certain debts or for a specific purpose such as a loan to purchase furniture. Make certain that you understand the parameters of the loan before agreeing to the terms.
Also be aware of a default rate kicking in should you be late even just one time. You may have to pay a one time penalty for being late and you could find that 18 percent interest rate jacked up to 24 percent or more if you are late.
When shopping for a poor credit loan compare rates and offers as no two offers are the same. Some lenders will want to have access to your checking account for automatic deductions which would mean that you must keep enough money on hand to avoid overdrawing your checking account.
Finally, a poor credit loan could do something that nothing else can do: restore your credit rating. Yes, by successfully paying off your debt on time you could see your once tattered credit rating improve.