Finding a personal loan with low interest can be a very difficult task if you have bad credit, but if you dig around enough, are patient, and apply a few simple strategies, you might be able to get the money you need on reasonable terms of repayment.
Online lenders are realizing that many people who have run into bad credit in the past few years need low-interest loans. Such people often are a good risk and have decent financial management skills and at least some income. As a result, interest rates for personal bad credit loans are creeping down as competition for business heats up.
One positive of getting a personal loan is that the money can become available to you quite rapidly, even if you have poor credit. Many lenders will deposit the money in your bank account within 24 hours of approval.
Where to Find Low Interest Bad Credit Loans
Top names in the low-interest field include: Quick Installment Loans Online, First Amerigo Installment Loans, MoneyNow USA and The Cash Store. Some of these lenders allow up to three years for repayment.
The big differences between lenders are often not found in their interest rates, but in their extra and hidden fees. Check out how much the application fee is, the processing fees, any pre-payment penalties that might come into play, etc. Read the fine print more closely than ever when shopping for low-interest loans for bad credit.
If you are able to get a low-interest personal loan while having bad credit, don’t count on securing huge amounts of money to solve all of your financial problems. Most of these types of loans are for small amounts that can be repaid within a year or so. Many of these loans are for $1K or $2K. Plan appropriately.
Even given the smaller amounts awarded in such loan arrangements, they remain a much wiser choice than any of the payday loans available online or in your neighborhood. Do not consider payday loans in the category of low-interest personal loans.
Personal loans should be considered an emergency solution that will be rectified as you rebuild your credit score. They should not be an option that you are constantly tapping into to keep your cash flow going. If that is the case, you need to re-examine your budget and make necessary changes. Get help from a financial counselor if needed.