If you are having a hard time financially, you are not alone in wanting to turn to bad credit loans. With so many Americans out of a job, with at an all time high, with people's incomes being slashed, and daily expenses like heat, groceries and gas going up, it's discouraging and tough to make ends meet.
A year ago, it was possible even for people with poor credit scores to get approved for unsecured loans. Wall Street was looking for any and every way to lend money, and sell the loan balances immediately. Yet the risk had been built into the products.
That risk was that debtors with bad credit would be unlikely to pay on time for the life of the loan. Today, banks have figured out the reality, and won't take a chance that people with a poor credit score are less likely to pay off a loan. So in today' economy, if you are trying to find bad credit loans to borrow money with a bad score, expect to find far fewer lenders willing to make these loans any longer.
This does not mean that all hope is lost! There are lending companies out there, but you need to know that the terms you'll face for these types of loans are expensive.
The truth is, some people who borrow and have low credit will be likely to pay their debts on time. So, some creditors will take a chance, but the interest rates and fees they bill you for will be high so they can get back some money for other loans they will not get repaid. Your interest rates will be ridiculously high, in double digits at least; a variety of other fees such as application fees, credit report fees, even annual fees, will also be expensive. If you really don't need this loan product, you should definitely abandon it.
However, if you are out of options, as so many people are, and you need the money right away, at least borrow the money with your eyes open. Consider these fees and costs as the cost of doing business when you have bad credit. But make a vow to change your bad credit! Use this loan to continually make your payment on time. Obtain a way to get more money, and use extra money to pay down the loan faster.
By at least making sure this new loan is paid by the due date and according to the terms, it will be a check in the "good credit" column when you start to rebuild your credit.
A year ago, it was possible even for people with poor credit scores to get approved for unsecured loans. Wall Street was looking for any and every way to lend money, and sell the loan balances immediately. Yet the risk had been built into the products.
That risk was that debtors with bad credit would be unlikely to pay on time for the life of the loan. Today, banks have figured out the reality, and won't take a chance that people with a poor credit score are less likely to pay off a loan. So in today' economy, if you are trying to find bad credit loans to borrow money with a bad score, expect to find far fewer lenders willing to make these loans any longer.
This does not mean that all hope is lost! There are lending companies out there, but you need to know that the terms you'll face for these types of loans are expensive.
The truth is, some people who borrow and have low credit will be likely to pay their debts on time. So, some creditors will take a chance, but the interest rates and fees they bill you for will be high so they can get back some money for other loans they will not get repaid. Your interest rates will be ridiculously high, in double digits at least; a variety of other fees such as application fees, credit report fees, even annual fees, will also be expensive. If you really don't need this loan product, you should definitely abandon it.
However, if you are out of options, as so many people are, and you need the money right away, at least borrow the money with your eyes open. Consider these fees and costs as the cost of doing business when you have bad credit. But make a vow to change your bad credit! Use this loan to continually make your payment on time. Obtain a way to get more money, and use extra money to pay down the loan faster.
By at least making sure this new loan is paid by the due date and according to the terms, it will be a check in the "good credit" column when you start to rebuild your credit.