Need money but have a poor credit rating?
One truth that you will learn about the world of finance is that someone is almost always willing to lend you money, but the terms might not be what you envisioned. If you have a low credit score and not much collateral to put up, you need to shop around thoroughly for one of the unsecured loans that are available.
Below is an introduction of several unsecured bad credit loans, but further down you can find more detailed information on this particular type of loan.
Common Unsecured Loans
Here are a couple of varieties of unsecured loans for bad credit that are on the market:
- Car loans
Lenders will give you an unsecured loan because they will simply come for the car if you can’t make the payments. If your credit history is bad, aim for a previously owned, less-expensive vehicle. That might, in fact, be the only type of vehicle that you can obtain a loan for, which simplifies your decision.
- Home loans
Lenders are a little slower to dole out the big bucks for people with poor credit scores, but again, they have a lot of leverage if you are not able to make the payments, which makes an unsecured loan easier for them to swallow. If you do fall too far behind, the bank will simply foreclose the home.
As with vehicles, set your sights a little lower than normal so that you can find a home that you can actually afford. The good news is that real estate is a buyer’s market in almost every part of the country.
- Payday loans
For short-term help, payday loans are available, although these unsecured bad credit loans have sky-high interest rates and usually do not involve huge infusions of funds to your account. Avoid these loans if at all possible.
If you have bad credit and nothing to put up to prove to the bank that you are a good risk, you are going to need an unsecured loan. These come with higher-than-normal interest rates, but they can help you to achieve at least some of your dreams if you are willing to downsize your aspirations when it comes to purchasing a home or a vehicle.