Common Types of Bad Credit Loans
If you are someone with bad credit, you might think that borrowing money is no longer an option. Maybe you've even been told that you are too risky to lend to. If this is the case, you might be surprised to learn that there are several common types of bad credit loans available.
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.
A secured credit card is another way to get a loan if you have bad credit. Secured credit cards are a little different from regular credit cards in that you have to make a deposit to receive the card. You have to offer a deposit in the amount of the credit limit on the card.
School loans are a good option not only because they are readily available if you have bad credit, but also because they are usually issued with a low interest rate. For people with bad credit, loans with low interest rates are almost impossible to come by. Government guaranteed school loans make loans with low interest rates a possibility.
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.
A secured credit card is another way to get a loan if you have bad credit. Secured credit cards are a little different from regular credit cards in that you have to make a deposit to receive the card. You have to offer a deposit in the amount of the credit limit on the card.
School loans are a good option not only because they are readily available if you have bad credit, but also because they are usually issued with a low interest rate. For people with bad credit, loans with low interest rates are almost impossible to come by. Government guaranteed school loans make loans with low interest rates a possibility.
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 bad credit loans, and more specifically about personal loans for people with bad credit.
posted by Credit Counseling at
12:37 AM
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