Personal Loans for People with Bad Credit
If you have good credit, you don’t have to worry about getting a personal loan. All manner of loans are open to you, from any lender imaginable. You’ll be able to have loans for your car, your home, for anything you need to pay for or just want. However, a lot of people in America and all around the world don’t have the best credit, which makes getting a loan extremely difficult. Personal loans for people with bad credit can be had — but you are going to have to spend some time trying to get one.
If you have bad credit, banks won’t want to chance losing money they have loaning it to you, so you could have a hard time finding a personal loan. Obviously, people with bad credit got that way for not paying bills on time for one reason or another, and so are not trusted. It’s entirely possible that you have legitimate reasons for this, be it bad financial circumstances that were unforeseen or just an inability to make payments.
In order to get a bad credit personal loan, you have to make it less risky for the bank to accept you, and there are several ways in which to accomplish this, which are outline below. While this may take a bit of effort, you’ll be well rewarded with the chance to take out a loan from a bank.
Before you do anything, get a cosigner to get the loan with you. Basically, a cosigner is also responsible to pay back the loan. They will take the responsibility if it were to default. Banks will appreciate this because they will have someone else (with, preferably, good credit) to take over the loan in the event you can’t pay it, so they know that either way they can get the money back.
Though this could be hard to get someone to put their credit at risk, it may have to happen. You can often guilt friends and members of your family to do this for you. If not, there could be some sort of deal you can make with them.
There is also putting up collateral as a way to get a personal loan for bad credit. Without assets, this could be difficult to do, but if it’s possible, a loan could result from you putting it up for collateral. This way, if your loan is defaulted, they can at least take that asset and recoup some of their losses. The borrower may not like this, but it could be their only option if their credit is bad enough.
A lot of times, some innovative financial wizardry could help you get a bad credit personal loan. Let’s hypothesize a situation where you want a $200,000 mortgage loan for your home. If your credit is bad, and that amount is as much as your house is worth, you probably won’t get any help from the bank. On the other hand, the person selling the home might be able to lend you ten grand, bringing that total owed to the bank to $190,000. The bank would then have less to risk on you. It may sound small, but $10,000 in equity is a lot to the bank, and will help your case.
Recently, there have been a lot of inquiries regarding free bad credit personal loans, and whether they exist or not. To be perfectly truthful, it’s difficult to see how that idea makes any sort of rational sense, so it would be hard to find any sort of deal like that. Unless you’re getting a loan from family, you won’t find a free loan.
One option for you is a bad credit personal signature loans, which might help your situation. If you have a cosigner, you could potentially get one, otherwise you might have some trouble getting the loan if you have any sort of bad credit, particularly in this hesitant loan market. You’ll find a lot of these bad credit personal loans, but due to the fact the bank is taking a huge risk on you, you’ll likely need that cosigner we discussed earlier.
Payday loans are probably the single kind of bad credit personal loan you’re guaranteed to get in this climate. You are going to find it difficult to find any other kind of guaranteed loan, so you should likely stop looking.