In the socio economic cycle worldwide, there are many categories of people. One such category is those people who do not have enough money to meet their requirements and needs. However, what if they have bad credit rating? Yes, they still have several options in hand to get a loan for bad credit at creditpoor. In the following lines, we will learn some ways to get those loans, which can easily be availed.
To make the personal loan proposition much more attractive and lucrative to the lender, you can offer a small asset of value to him or her. This way the lender may actually be buying something from you instead of giving out a loan.
Equity Loan against your house:
This type of loan is not easy to acquire. The pre-requisites of such a loan are very strict and lengthy. Most lenders require you to have held the ownership of the house for atleast 10 or more years. Any person who has resided in the house for less time than this may not have a large enough equity in that residential asset.
No Credit Check Loan:
For people with a poor credit history looking for a loan, this is a good option. This type of loan is offered without undertaking a credit history check on the borrower. Obviously such an attractive loan product is not very common. It is very risky to offer money to someone without completing any checks on his credit track record. With only a few and very far apart, one such type of loan is offered by some car dealers and automobile sellers. It is a secure loan entrusted to you without undertaking a credit check and is to be used for purchasing a motor vehicle. However, as the vehicle acts as the security, you can avail yourself of this type of loan only if you want money to buy a car. Cash borrowing is not an option in this no credit check loan.
Loan in a single day:
If you have a bad credit record and are really in need of money on an urgent basis, getting a loan may not be very easy. For people with a good credit history getting a loan from a bank or a friend is quite simple. But otherwise it is not a piece of cake. For such people there are the loans for bad credit. In most cases these are unsecured loans and can be availed without pledging any asset with the lender. Due to the high risk involved they are highly priced and may cost you a lot. But this is the easiest way to get a loan in just a day even if you have a poor credit history.
Expectations from a Bad Credit Loan:
The following things should be kept in mind while opting for a Bad Credit loan:
- Due to their risky nature, the interest rates on these loans are much higher than regular loans.
- If they are secured with collateral, the interest rate will be comparatively lower but you should expect that an unsecured bad credit loan will attract high interest rates and stringent conditions.
- These types of loans are often called signature loans where a co-signer with a good credit history is needed to fulfill the pre-requisites.