Loans for People with Bad Credit

Archive for August, 2010

No problem.

What? You thought there would be a problem. Well, the loan won’t be very large and the interest rate won’t be very competitive. And it might not be worth the possible outcomes. But it might be worth it. There are three types of loans for bad credit you can get: Payday Loans, Title Loans and Signature Loans.

Payday Loans

You can apply and receive these short-term loans as long as you have a job (and can prove it). They are fast. And they come at a price. The interest rate can be more than 25 percent, and sometimes as high as 50 percent. Not fun … but if you are looking for a 1500 loan, then this might be the solution.

Title Loans

These non credit check loans can be secured by the title of your car (assuming you own your car, tree and clear). You keep the car, but the loan company keeps the title. That means that if you default on the loan, the loan company has the right to sell your car. But, it may be worth it to get a high interest loan for up to 80 percent of the Kelly Bluebook value.

Signature Loans

While the loaning companies do check your credit rating when you apply for these types of loans, if you haven’t damaged your credit in the last several months, it is possible to receive a signature loan. This type of loan can be secured with a simple signature. These are usually shorter loans and – depending on your income – could be more than a thousand dollars. However, the plus side of a signature loan is that the loan can actually improve your credit by giving you a positive credit score. That, alone, might be worth the high interest rate.

No credit for a mortgage

That’s a little more difficult. You are going to have to improve your credit history before you can get a home mortgage. You can have not-so-good credit; but it is now – with the new banking laws in place – impossible to get bad credit loan for a house.

In short, if you need a quick monetary fix, you can get a small, high interest rate loan on bad credit. Do you want the loan? That depends on how bad you need the fix. If you have to go for the loan, use the financial breathing room it will provide to reexamine your spending habits – you didn’t get into this financial quagmire without somehow consenting to it. It is never easy to be up to your eyeballs in debt.

And you thought it would be impossible for you to get a loan. Well, think again. It’s not only possible, but it’s likely that even you can get a loan.

There are a few ways today for you to look into receiving a 3000 personal loan. Meant as a short term financing and obtaining money you need quickly. Knowing how to utilize them the right way will help you stay out of financial trouble and the possibility of jeopardizing your credit.

The four main options that are available to you for a 3000 loan include, but are not limited to the following:

1) Payday Loan (or cash advance loan)
2) Personal Loan from friends or family members
3) Peer to Peer (P2P) personal loan
4) Traditional credit union or bank loan (whether secured or unsecured)

Let’s take a look at the basics of some of them:

Payday Loan (or cash advance loan)

Probably the easiest and most simple way to obtain a 3000 cash advance loan. But since they are short term they carry a larger interest and fees with them. They are quite simple and you can obtain one from the lender’s site or their online website (they are readily available in most towns), they will require two items basically:

1. A valid checking account in good standing
2. A job with a steady paycheck

You can actually find these classified as a “3000 loan with no credit check” loans, which means you can even apply for them if you have no credit, little credit, even bad credit.

The initial cost of this type of loan includes an upfront fee and the interest fees. Your upfront fees can cost you on an average about 17% of your loan principle amount, capped at about $350. The APR for the interest can run you as high as 400% since it is an annualized interest rate. They are not going to be cheap to obtain, but the 3000 loan with bad credit or no credit is beneficial and comes in handy when used properly.

Peer to Peer (P2P) 3000 Dollar Loans

These are a newer type of loan to obtain, they are from sites or lending networks. They allow average people to help you out like a bank would, lending you money, like prosper.com. They are more close to the traditional bank loans than the payday loans. Keep in mind however that these loans are not usually going to be given to you if you have bad credit, if your credit is good than looking into one of the P2P sites would be a great way for you to borrow money.

Personal Loan from Family or Friends

Although a great way to borrow money make sure you planning it right and discuss the options. You don’t want to be saving money and ruining a good relationship over it. Saving money on the fees and interest is not going to be worth it if you ruin ties with friends and family.

Either way you decide to borrow the 3000 loan you need to be aware of the risks and rewards. Make sure you don’t end up in any more financial downfall than you may already be in. Borrowing money should be done responsibly and being educated about it is important. You don’t want to end up ruining your credit scores if they are currently in good standing.