Personal loans with bad credit can be very useful when you need money quickly but don’t have a good credit score. Although these loans have higher interest rates and are harder to get, they are still viable. Fortunately, there are a number of options available, and you shouldn’t wait until you are in a financial crisis to apply for one.
Personal loans for people with bad credit are viable
Personal loans for people with bad credit can be a great option for emergency expenses. While getting a loan with bad credit is more difficult than getting one with good credit, they are still possible. There are a number of lenders who specialize in bad credit loans. However, if you have ongoing credit problems, you may need to fix these before applying for a personal loan. One option is credit counseling.
They have higher interest rates
When borrowing money with bad credit, you should compare the terms and interest rates offered by different lenders. There are many major banks that offer loans to prime and subprime customers. You can also find specialized companies that offer loans to people with bad credit. These companies may offer “pay day loans,” car title pawns, and debt consolidation loans. Be aware of predatory lending practices, which can leave you even deeper in debt. To find a good deal, shop around for a loan with a good interest rate and payment schedule.
They are secured
If your credit score is low, you can find a secured loan with low interest rates. The First Progress Platinum Prestige Mastercard(r) Secured Credit Card, for example, offers a low interest rate of just under 10%. However, the lender will charge an additional nine percentage points for cash advances.
They are unsecured
If your credit is in poor shape, you may want to look into unsecured credit cards with a low interest rate. These types of cards typically carry a 25 percent to thirty-six percent annual percentage rate (APR), which makes them a better option for people with less-than-perfect credit. However, be aware that unsecured credit cards have a lot of fees and aren’t as valuable as those with good credit.
They are short term
If your credit history is less than stellar, you can still get a short-term loan. This type of loan will require a small upfront fee. These loans are best for emergencies.