Bad credit can be devastating, especially if you are in need of a bad credit loan. In the faltering economy of today, many folks have poor credit following job loss and layoff, and reduced number of hours that they are granted to work by employers who are trying to cut costs. Or perhaps you have become ill or injured, and found yourself without a job due to frequent absenteeism.
Whatever has brought on your bad credit situation, you no doubt, like the rest of us, may need a loan from time to time. There are two best options for those with damaged credit – the secured personal loan or the guaranteed bad credit personal loan.
Secured Personal Loan
Secured Personal Loans are short term loans that allow you to borrow up to $10,000 and repay the lender with monthly payments. Most secured personal loans are written for terms from 12 months up to five years, depending upon the amount that you borrow and other circumstances. To be a recipient of a secured personal loan, you will need to pledge collateral to your lender.
Collateral can be in the form of your home, late model automobile, or other property that is valued higher than the amount that you wish to borrow. Secured personal loans will accrue interest on the principle amount that you borrow, which necessitates that you only borrow the amount of money that you truly need to avoid paying added interest costs.
Guaranteed Bad Credit Loan
Another option that is very popular among those with faltering credit scores is the guaranteed bad credit loan. A guaranteed poor credit loan is the easiest of all loans on the market to get. Nearly everyone can qualify for a poor credit loan regardless of previous credit history, with 99.99% of all applicants approved under most circumstances. It may also be known as a payday loan, a cash advance loan, or simply a cash advance.
To receive it, you will write a post-dated check in the amount that you wish to borrow. The lender will hold the check until a specified period of time has passed, usually coinciding with your next scheduled date to be paid. When that date arrives, you simply return to the payday lender to retrieve your check and pay the money that you owe, or you do nothing and the lender will deposit the check into your account for payment.
There is no credit check required to receive a payday loan, and the only requirements for getting the money you need is that you have an active checking account and a job.
Payday loans are usually written for no more than $1,000, but the lender will determine the amount that you are eligible to borrow based on your bring-home pay, or the combined bring-home pay of you and your spouse (if you have a joint checking account). Payday loans are a bit higher than other loans in the terms of interest that you will pay, but can really help out bad credit borrowers who find themselves in dire financial straits.