Personal Loan Guide

When your debts start piling up to the point where making even your minimum payments begins to be a challenge, it can be a worrisome feeling indeed. After all, it can be hard enough to meet one’s regular monthly expense obligations – let alone having to pay interest on your other debts.

But, what are your choices in getting out of this situation? Well, obviously, you can either:

a. make only your minimum payments, thereby having no end to your debt situation in sight

b. default on your payments, which will wreak havoc on your credit score – making it almost impossible to qualify for a loan for years to come

c. find a way to make a higher income to pay your debts down faster

d. get a consolidation loan at a lower interest rate – thereby reducing your monthly debt service payment amounts

If you need help with debt consolidation, here is a guide to getting a secured personal loan:

1. Debt consolidation can save you money:

The reason that you can save money with debt consolidation is simple: you essentially are paying off some of your higher-interest debt – such as credit cards – and replacing it with lower interest debt.

2. A secured loan requires some collateral for the lender:

Most secured loan programs are called “secured” because they require some sort of collateral to be put up on the part of the borrower. One such option is putting up for collateral a CD (certificate of deposit), a savings account, or the title of your completely-paid-off car. Continue Reading

You don’t have the best credit, but you do have the best reason for needing a personal loan right now. There are a million circumstances that could bring you to start searching for a payday loan or some other type of fast loan, and in many cases your bad credit could become a major issue. If you walk into a bank or credit union, the first thing they are going to ask to do is pull your credit. You know that is a losing situation, so what other options do you have available?

The first thing to note is that payday loans are different from other types of personal loans. You can take a payday loan from specialized lenders who do not care about your credit at all. These specialized financial institutions are not designed like banks. They have no interest in keeping your money on a daily basis or giving you a debit card and checkbook to access those funds. The only purpose for these institutions is to extend money to those in need.

Before you think institutions giving these personal loans are saviors or do-gooders, note that they are doing it only to make money. The can advance money to people in need, but they expect to get the money back in a timely manner plus a bit of interest. It is that interest that makes the personal loan worth their time.

When these companies do not get their money plus interest in the time frame expected, they will come after you and drag you into court. This is why you have to give serious thought to taking out a personal loan prior to signing on the bottom line. If you are not sure you will be able to repay the loan, it is best not to take a payday loan at all. That may leave you in a desperate situation, but the trouble you will find yourself in when you cannot repay will be far worse.

Yet, there are many circumstances under which a personal loan is the perfect solutions. If you know you will have the money to repay the loan within the given time frame, and you have a valid reason for needing the loan right now, then there is no reason not to sign on that bottom line and get the money you need right now.

Some payday loans can deliver the money directly to your bank account without twenty-four hours. Some can loan you money for up to a full month. The terms are always different, so make sure to shop around and read the fine print when you find a good deal. Make sure that your credit is not going to come into the picture and you can abide by all of the terms and conditions listed in the fine print.

Ask questions of a human being prior to taking out the personal loan. If you are taking the payday loan out online, there should be a toll free phone number where you can talk to someone about your concerns. Never take out a personal loan without asking those questions!

If you are in need of cash, a personal loan might be just what you need to be able to pay your bills. Many people who need money fast overlook the option of personal loans because they do not understand how they work. Or, they do not think that they will be able to qualify for one of these loans because they have a less-than-impressive credit score.

The truth is, however, that you can find personal loans even if you have a very low credit score of fewer than 600 or even 550. There are several types of personal loans to choose from, including secured loans, unsecured loans, and auto title loans.

Secured loans are where you put up some sort of collateral – something of monetary value that the lender could easily sell in case you fail to pay back the loan principal. Because this type of loan is secured, it means that you can expect to pay slightly lower interest rates. Also, your credit score will not be much of a factor with these loans, since the fact you are putting up collateral helps to reduce the lender’s risk in the deal.

Unsecured loans, on the other hand, do not require that you offer up any collateral to the lender. That’s a good thing if you do not want to put something of value up for possible sale by the lender later on. However, the drawback is that you will have to pay a higher interest rate on your borrowed money.

An auto title loan, meanwhile, is very similar to a secured loan. In fact, it is a form of secured loan. With an auto title loan, you are using your car’s value as loan collateral. In the case of this type of loan, you are risking losing your car. And, interest rates can be pretty high.

If you can, your best bet among these 3 options is to go with an unsecured loan. Surprisingly, even if you have a bad credit score you should be able to find a bad credit lender who will lend you the money you need.

The trick to doing so is this: you do not want to just walk through the front door of any old personal loan lender and ask for a loan. Rather, you will first want to do your homework. Find a notepad and a pen. Then, start searching for personal loan lenders who make it a point to deal directly with people who have low credit (FICO) score. Take good notes so you know whom to call and who is offering you the best deals.

You see, bad credit personal loan lenders will not be nearly as hung up on your credit score as would be most lenders. While most lenders will run away screaming at the sight of a FICO score below 550, a bad credit personal loan lender will automatically see that as a challenge to try to meet or beat. By applying with them directly, you will be setting in motion their wheels, with the goal of finding a way to get you approved.

Final bonus tip: make sure that you do not limit yourself to applying to just one of these lenders. Instead, apply to at least 3-4 of them. That will increase your chances of landing the best rate.