Where Can I Get a Loan If I Have Bad Credit?

where can i get a loan i have bad credit

Getting a loan with bad credit may feel like an impossibility, but it's not.

Many people go through financial woes in their lives. Unfortunately, these things have a way of following you, regardless of how your finances have recovered. Obtaining a loan is one of the hardest things to do when you've got bad credit.

If you're one of those people asking, "where can I get a loan with bad credit", then you're in luck. We've compiled a list of viable lending options for those with bad or no credit. You shouldn't be shut out just because of your credit score, try out one of these loans.

"Where Can I Get a Loan With Bad Credit"

Getting a bad credit loan that'll get you the amount of money you need without scamming you or compromising your financial situation is about shopping around. Even in an emergency, you should be considerate of the interest rate and loan terms before deciding.

The first thing you should do is get your credit score checked to see exactly where you stand. You might be surprised at what traditional lenders will hand out if your credit is showing improvement. If you can't get one of those, start looking at different types of loans.

Types of Loans

Basically, there are two types of loans that you'll come across: secured and unsecured.

An unsecured loan is what most personal loans are. When you get a personal loan from a bank or lender under normal circumstances, they're pretty manageable. Unsecured, bad credit loans usually have higher interest rates that are determined by how bad your credit is (APR could range between 5% and 35%).

Secured loans have collateral attached to them. A common example of a secured loan would be a home equity line of credit, which means that if you don't pay the loan back, your home could be repossessed. Because of the terms, they're much easier to get and have much lower interest rates.

What to Avoid

It's almost always better to try and get an unsecured loan, but you have to be careful with how much you borrow. Choose an amount that you can pay back quickly because some of these personal loans are designed to trap you in a debt cycle.

If the lender doesn't perform a credit check at all, that should raise a few red flags. You want to find a lender that reports to one of the big credit bureaus and displays testimonials on their website.

Get a Loan That Makes Sense For You

When you're asking, "where can I get a loan?", try not to rush into anything because that's when you'll get tied up with a lender that doesn't exactly have your financial interest in mind.

Research different lenders and what they can do for you, then make an informed decision that can help you improve your credit score. The better your credit score gets over time, the more qualified you'll be to get loans with better terms and rates. 

Loan Leverage

Did you find this post on getting loans with bad credit helpful? Come back and visit us again for more on personal finance and money management. Visit the Loan section of our site right now!

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