Personal Loan
Personal Loan - Don't assume that just because you have bad credit you
can't get a personal loan. However, you will likely have to pay a higher
rate of interest. Look at this though as an opportunity for you to
rebuilt your credit. If you make all of those payments on time, your
credit report will reflect that positive information. It can be your
beginning to a fresh start financially.
Payday Loan - You can also pay extra on the personal loan so that you
will pay less in interest. Even paying an extra $25 per payment can
slash those fees significantly by the time the loan is all paid for. If
that is a plan you wish to follow, make sure you don't work with any
lender that is going to charge you fees for paying the personal loan off
early.
If you have circumstances such as a divorce, death in the family,
medical problems, or loss of a job due to no fault of your own that
could have a substantial impact on your credit. Explaining this
information to the lender is a good idea. They may be able to give you a
better rate once you are able to explain everything that has occurred.
You may be required to verify the information you offer them in order
for them to work with you.
Do you have a friend or family member with excellent credit that can
help you out? They can co-sign on your personal loan. This means that if
you aren't able to pay your account according to the terms and
conditions, they will have to pay it for you. This can be hard on them
so you have to make sure you are able to keep up those payments. With a
co-signer though you can often get the credit you need and start to
rebuild your own credit history for the future.
Even though you know you have bad credit, find out what it looks like.
There could be some discreprencies on your credit report. They can make
you look irresponsible and not show a true reflection of your situation.
If you see such problems on your credit report you need to get them
taken care of.
Even a few extra points on your credit score can make a difference about
you getting approved for the personal loan or not. They can also
influence how much you will pay for interest. Typically, the lower your
credit score is the more you will pay. This is because the lender is
taking an increased risk with you.
Payday loans are an option if you have bad credit as no credit check is
conducted. Instead, the lender is looking to see if you have the means
to repay what you borrow at this point in time. You will have to verify
you have income, show a photo ID, and have a valid checking account.
Keep in mind that a payday loan though will have much higher interest
than other personal loan options.