Bad Credit Loans, What are the Options

Here are some of the ways to get a personal loan if you have a bad credit rating. Just to clarify a personal loan is simply a loan which is not secured against a house or a property, so it is an unsecured type of loan.

Bad Credit Credit-Card

These works in a very similar way to a conventional credit card but interest rates are typically a bit higher. They are around 35 to 40 percent and you can get a loan up to $2000. The approval usually takes about 2 weeks or less to process and you will know if you are successful or not. There are also conditions that need to be met before this card can be given to an applicant; for instance, your last missed payment needs to be at least 6 months or in some cases a year ago. This is a good option for anyone that has bad credit and it is a good idea to apply for this card to see if you can qualify.

Guaranteed Loan

A guaranteed loan is typically available from $50 all the way up to $10,000. The $50 to $500 option for a guaranteed loan is a short-term loan and they can have interest rates as high as 700% annual percentage rate (APR). This interest rate is far cheaper than what you can get from a payday loan which can be up 5000% APR. Guaranteed loan are approved very fast and you can have the loan on the day that you apply, in some instances, approval is within an hour. You need a family or a friend that have a clean credit history to stand as your guarantor. With this, you can get a lot cheaper loan than if you go with a payday loan. The longer-term guaranteed loans which are typically from $500 up to $10,000 and repayment will typically be spread over a year to five years. The interest rate on this type of guaranteed loan is around 50% depending on the lender you choose to go with. Again you will need someone to guarantee your loan, so again a friend, a colleague, or a family member who has a clean credit history will be backing up your loan. Check here!

Doorstep Loan

In this type bad credit loan option, you can borrow typically from $100 to $500 and they can be quite quick to be approved so you can get the loans very quickly. The interest rates are typically about 275 to about 550 percent APR and these type of loan’s repayment are typically spread over a year. In terms of your repayments, the difference with these types of loans is that the lender’s agents will actually come round to your house and will pick up the loan repayments. It is just that they are a slightly different version of short-term lending but the payments are spread out.

Payday Loans

There are lots of adverts on television about payday loans, especially during daytime television. You can borrow up to $500 for 2 to 3 weeks before your next payday but they can be very expensive. They are designed for short-term lending, so if you need money for a couple of weeks before your payday, they can be a good option but if it is for a longer time they can be extremely expensive. For more information visit: https://www.chron.com/business/moneytips/article/Personal-Loans-For-People-With-Poor-Credit-11226818.php

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