Personal loans for people with bad credit are becoming more and more common. The story is a familiar one in this economy; due to a variety of circumstances you’ve fallen on hard times, and need to get a loan to offer some relief. Unfortunately, these very same circumstances may have hurt your credit score, and now you’re wondering what to do.
Whi
le it is true that you have to be extra vigilant, fear not as all is not lost. You do have a number of options, but the question is which one is going to be best for your situation, with the best personal loan rates and least risk. With the right preparation and a little research you should be able to find that answer. Here are some options that you may want to consider:
• First Things First. A wise first move is to get a free copy of your credit report and look it over to make sure your impression of your credit is correct, as it’s possible that it’s not as bad as you think. Regardless, it’s a smart move to do this if only to be certain that all information is up to date and correct.
• Family or Friends. Maybe the best place to start, despite the discomfort of having to ask. The benefit is obvious in that the cost of the loan is typically just that—the amount of the loan.
• Credit Unions. Another good initial choice, as credit unions are typically a little more understanding than some of the other lenders, and there is an advantage to meeting someone in person instead of just being a faceless set of numbers.
• Online Lenders. One great benefit of going this route is that you are able to get a much wider selection of possible lenders to find personal loans, and the competition is fairly fierce, making the possibility of getting a better deal a little more likely.
• Payday Loan. This should absolutely be your last choice, and the option that springs to mind in connection with the “borrower beware” of the title. If you have absolutely no other choice, a payday loan can help in extreme circumstances if the loan needed is very short term, and is saving you from a catastrophe, like losing your home.
Before accepting any personal loan offer, you’ll want to be sure that your credit report is accurate and that you have shopped around, as not all loans are created equal. By taking the time to research and understand the situation thoroughly, you may well be putting more of that much needed money into your pocket.