Different Types of Bad Credit Loans
Borrowing money becomes increasingly more difficult if you have bad credit. Perhaps you've tried to borrow money, only to be turned down because you were considered to be too big of a risk. If this is happening to you, you might think that any hope of borrowing money now or even in the future is out of the question. It might surprise you to find out that there are actually quite a few different kinds of bad credit loans available for people in your situation.
Personal loans are probably one of the most common types of bad credit loans. Sometimes referred to as payday loans or guaranteed loans, they are quick and easy to receive. One reason they are so quick is that there isn't a lot of information you need to provide to receive the loan. If you are at least 18 years old, are a citizen of the U.S. and can provide proof of your income, you most likely will qualify for a personal loan.
Another kind of bad credit loan is a student loan for school. Most school loans are backed by the government. This means that if the borrower defaults on the loan, the government will continue to make payments to the lender. This makes it a lot less risky for lenders to issue loans to people with bad credit.
If you plan to attend college, but you think you won't be able to get a loan because you have bad credit, a Federal school loan is still an option. These types of loans are considered bad credit loans because you can qualify for them if you have bad credit or even no credit at all. The government backs the loans making it less risky for lenders to loan to people without a good credit history.
Really, the main advantage to a secured credit card is to help you build your credit. By establishing a card in your name and making your monthly payments on time, you will improve your credit score. So even though secured credit cards don't really make any more money available to you, they are helpful for building a positive credit score which in turn will help you qualify for other loans in the future.
It is true that if you have bad credit there are a lot of loans you probably won't be able to qualify for. But borrowing money and improving your credit by paying back in full and on time is not a hopeless cause. There are bad credit loans available to help you accomplish your goals.
Personal loans are probably one of the most common types of bad credit loans. Sometimes referred to as payday loans or guaranteed loans, they are quick and easy to receive. One reason they are so quick is that there isn't a lot of information you need to provide to receive the loan. If you are at least 18 years old, are a citizen of the U.S. and can provide proof of your income, you most likely will qualify for a personal loan.
Another kind of bad credit loan is a student loan for school. Most school loans are backed by the government. This means that if the borrower defaults on the loan, the government will continue to make payments to the lender. This makes it a lot less risky for lenders to issue loans to people with bad credit.
If you plan to attend college, but you think you won't be able to get a loan because you have bad credit, a Federal school loan is still an option. These types of loans are considered bad credit loans because you can qualify for them if you have bad credit or even no credit at all. The government backs the loans making it less risky for lenders to loan to people without a good credit history.
Really, the main advantage to a secured credit card is to help you build your credit. By establishing a card in your name and making your monthly payments on time, you will improve your credit score. So even though secured credit cards don't really make any more money available to you, they are helpful for building a positive credit score which in turn will help you qualify for other loans in the future.
It is true that if you have bad credit there are a lot of loans you probably won't be able to qualify for. But borrowing money and improving your credit by paying back in full and on time is not a hopeless cause. There are bad credit loans available to help you accomplish your goals.
About the Author:
Trinity helps people to learn about loans, how to find a bad credit loan, and more specifically about personal loans for bad credit.
posted by Debt Consolidation Loan at
8:31 AM
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