Tips on Getting Personal Unsecured Loans With Bad Credit

There are many reasons why an individual may have a low credit score. Apart from the obvious mismanagement of their finances, there are many other reasons why somebody may have poor credit, an illness in the family or a divorce are just two examples. Now if you have bad credit and you need some cash for an emergency it can be tough. However this does not mean that you cannot qualify for personal unsecured loans with bad credit.

If you find yourself in this situation and your credit score does not meet the minimum requirements of you local bank, this does not mean that you will not be able to qualify for a bad credit loan. There are still lenders who will work with you, but you will have to pay a higher interest rate than what would be available to you if you had good credit.

How difficult it will be for you to qualify for this type of loan will depend on the loan amount and the loan term. If you are applying for a secured loan you will need to provide collateral such as your home or another asset you may own. Now you need to be aware that if you default on this type of loan, the lender may foreclose on your home. Before you take on a secured loan be sure you can afford the repayments.

The majority of people applying for a bad credit personal loan will be looking for an unsecured loan. If the loan is for $1500 or less, then you should have no problem. The payday loan lenders will provide you with a short term unsecured loan. This type of loan can be very expensive and should be avoided unless it's a dire emergency. It is much better to try and borrow what you need from a family member of friend for the short time needed.

Before you apply for any type of bad credit loan you should consider all the other options available to you. Do you really need the loan right now? Would it be possible to borrow from family or friends? Would your employer be willing to give you a cash advance against future pay checks? All the aforementioned loan options would be much cheaper than getting an unsecured personal loan. Bad credit loans are designed as a short term financial solution only.

You should also work on improving your credit score by making all your payments on time and this will make it easier to qualify for a loan in the future. Get a copy of your credit score and check it for mistakes and get them corrected as this will also help raise your credit rating.

As with any type of financial transaction, you should avoid making a hasty decision when it comes to applying for or accepting a bad credit loan. Loan application can be completed very quickly online and approval takes just a few hours or days at most. Therefore you need to take the time to compare loan offers to get the best terms. Do not be rushed into making a decision and shop around for the best deal.

If you believe that a bad credit personal loan is the preferred solution for your current financial needs, be sure that you can afford the monthly payments. Remember, if you fail to make repayments when due you will create more credit problems for the future.

Noel Hynes is an online researcher on the subject of Personal Unsecured Loans With Bad Credit. You can find further information on Bad Credit Loans Here.




7 Pros and Cons of Unsecured Loans - Avoid These Traps!

Unsecured loans are loans that have no collateral, like a home or a car or stock, backing up the loan and available to the lender if the loan goes bad. These loans are issued solely on the promise of the borrower to pay it back according to agreed upon terms. A document, usually a loan contract is signed and the money is issued. These loans are also known as signature loans.

Usually unsecured loans are for one time expenses like a medical bill or help in meeting a down payment on a home or expensive auto or perhaps taking advantage of a lower interest rate to pay off other, high interest rate debts. They can be a useful financial tool for the borrower but they can also be fraught with danger. Here are a few of the pros and cons of unsecured loans that you should be aware of.

1. IOUs

Perhaps the simplest of unsecured loans is the old IOU where the borrower gets funds from a friend or family member. These loans should be entered into, particularly by the lender, very carefully. There's usually a reason why the borrower is going to a family member rather than a financial institution. If the loan goes bad, it's not just bad debt it could be bad blood and a family relationship ruined.

2. Credit Cards

The most popular form of unsecured loans is by far and away the billions in credit card debt that consumers rack up each year. You may not think of a credit card transaction as a loan but it is. You purchase an item with what is essentially a loan or credit and you sign a form promising to pay it back. While the credit card company is paying the merchant for your purchase, you are obligated to pay the card company according to the terms and conditions you agreed to when you got the card. In the past, if your credit rating slipped, the card company could arbitrarily increase the interest rate you pay some going as high as 30%. Thanks to a recently passed law, that practice is now banned.

3. Banks and Credit Unions

Some banks still offer signature loans but they are more likely to offer a personal line of credit. How much you qualify for and at what interest rate depends on your credit worthiness. Credit unions typically have lower rates for unsecured loans and if you have good credit, getting the loan should be no problem.

4. Astronomical interest rates

Lending institutions argue that because no collateral is offered to secure a loan there is a greater risk and that justifies a greater interest rate. If you have bad credit and you go for one of the short term loans you could be paying as much as 400% APR. Consumers don't really see it that way because those loans are usually so small (less than $1000) all they are really concerned with is what the payment is. For example a $250 loan for 2 weeks will require a total payback of $234. $34 doesn't sound like much to a consumer who needs cash now but it is a huge profit for the lender.

5. Unsecured loans can be discharged in bankruptcy

If you have to file bankruptcy, chances are your unpaid unsecured loans will be totally discharged as they have the least rights to assets in a bankruptcy. Any loan that has collateral securing it, like an auto loan or mortgage is treated differently.

6. Unsecured consumer loans fall under the Fair Debt Collection Practices Act

Unsecured consumer loans like credit cards are covered under the FDCPA and the consumer is offered some protection from the behavior of collection agencies should the loan default. For example collectors can not make harassing calls, call you at work, threaten law suits when they have no intention to sue and a host of other restrictions. The law also allows to sue collectors who violate the act and the consumer can receive up to $1000 plus attorney's fees.

7. Know your numbers

Because the only thing backing unsecured loans is your promise to pay it back, lenders will obviously want to see your credit report and FICO score when considering your application. The better the credit history and the better the FICO score the better position you are in to negotiate a lower interest rate. Federal law allows you to get a copy of your credit report free once a year. Download it from the free site and review it for accuracy. If there are errors, resolve those with the reporting agency before applying for a loan. The better financial profile you can present the less the loan will cost you.

Unsecured loans have their place but it is imperative you understand the terms and conditions before you sign. Always deal with a reputable lender when seeking out these types of loans. Selecting the wrong lender could end up costing you thousands.

As an expert in consumer credit, Mark Polan knows the traps that people can fall into when they borrow unsecured loans from less than reputable lenders. If you find yourself in that position Mark advises that you check out solutions at Dallas Debt Consolidation.


Auto Financing Tips

If you are looking to buy a new automobile no doubt you have already started doing your homework. Comparing vehicles and models, accessories and mileage and checking out an abundance of dealerships to see who has the best price for the exact vehicle you want to drive.

You need to do the same thing when it comes to getting financing for your new vehicle. Financing options abound, and everyone has a slightly different rate with slightly different terms. It is up to you, the consumer, to find the deal that is right for you.

The process of finding a financing option which is best for you can seem daunting but there are at least a few things you can do to make the process a lot less painful and lot more effective in the long run.

Dealer financing

In many cases the dealership will work to help you find an option that you can handle. Remember, they want to sell you a car, so it is in their best interest to help you buy it, but there is only so much they can do. The rest is usually up to you.

Start by comparing financing options available at institutions other than the one your dealer recommends. Don't be afraid to search online, visit your bank, the neighborhood credit union or anyone who makes new auto loans. Everyone will have different interest rates, terms and options. The more options you have the better the deal you can secure for yourself.

Leasing might be better for you

You might also want to consider a leasing option rather than a straight purchase. With leasing you can often get a much lower monthly payment and also not have to worry about maintaining the car month after month because dealer provided maintenance is part of the agreement. Of course at the end of the least the car belongs to the dealer, not you, so be sure you understand how that will impact you in the long run if you decide to go with that option.

Your credit report

If you do decide to purchase you vehicle there are a few simple steps you can take to make certain you get the financing options that you need.

First, get a copy of your current credit score and credit report and start checking it for errors. It is not uncommon for credit reporting companies to use outdated or completely wrong information. It is up to you as the consumer to make certain the information in your credit report is accurate.

Every lender is going to use your credit report and credit score to determine whether or not to loan you money and what terms to offer you. Making certain this information is correct will go a long was to getting you the deal you need.

Compare lenders

Don't just settle for the financing option offered by the dealer. Start comparing rates of as many lenders as you can. Visit your bank, local credit unions and even internet lending agencies. Collect a list of the top five deals offered then revisit them and start negotiating. Don't be afraid to haggle for the best possible deal. Lenders, if they want your business, will be willing to fight for it and will adjust the terms of their loan to better suits your needs in order to get you to deal with them.

Don't be late with your payments

Once you get the loan you want, make your payments on time and pay off the loan in full so you can further improve your credit and get an even better deal the next time you buy a new car.


Mike McTigue is an Automotive Journalist and former Car Dealer with a unique insight into the auto financing industry, and special financing.

Looking to buy a new or used car? Learn more about Auto Financing from the experts, and get a car loan today!



Tips to Pay Your Car Loan on Time

Because the world we live in now has become very fast-paced, cars have become more of a necessity than a luxury. A car would make it easier for you to get around the city. Commuting to work can be taxing and even dangerous at times. Cars are great for families as they do not only provide security for each family member they are also very convenient for them. Having your own car would also come in handy during emergency situations.

However, a car doesn't come cheap and most people aren't lucky enough to buy their own brand new car. Though people have their reasons, most of the time it's because of financial problems. In such situations, applying for a car loan is a great solution.

Of course you can't just get a car loan and go. Getting a car loan would require certain responsibilities. The most important responsibility would be to pay your debt on time. You don't want to risk lowering your credit score. It's not always easy to pay back a car loan. To help you out, here are some friendly tips you can use:

· Choose the Right Car Loan Financing Company

The key to paying back on time doesn't start when you have your car. It starts before you even get the loan to buy one. This is the first and probably the most important step to take. A good way to search for one is by searching the internet. If it doesn't have a website, then it's probably not worth your time.

Take advantage of the information given on their websites and browse through important and useful stuff like their policies and services. You can also find out certain requirements you need to accomplish, learn about their rates and payment options. Knowing all these can help you better prepare for paying back your loan and can even save you from unexpected situations.

· Pay Attention to Interest Rates

This is particularly important to you as interest rates basically determine the extra money you pay the company apart from the actual principal you owe.

It would be wise to know the interest rates of different companies so you can compare them and find the best one for you-the one you can pay with no trouble.

· Choose a Practical and Realistic Car

Yes, car loans can help you get the car of your dreams quick and easy. However, it would be a wise decision to go for a car that is practical and realistic-one that meets all your needs in a car yet is also easy to pay back. If you live on a shoestring budget, it's unpractical to go for a Mercedes Benz. You will most probably regret it later on.

· Set your Priorities Straight

Remember that a car loan is a responsibility. You have to be serious about it. Learn how to budget your money wisely so you will always have enough money to pay. Do not take it for granted just because you are given a lot of time to pay back. Most people make the mistake of not preparing for their payments in advance because they think that they still have tons of time to pay. They spend on unnecessary things and when the time comes for them to pay, they aren't ready and they panic.

· Get Help from a Loan Calculator

If you're bad with dates and deadlines, you can use a loan calculator to help you keep track of everything. This device can help you remember due dates and other important payment details. This allows you to know how much you have to pay ahead of time. It's better to be prepared.

Buyacar specializes in selling brand new and used cars. And we all know that cars are quite the necessity for people nowadays. Without them, it would be hard to get around town. Not everyone can afford one, though. For those who are in dire need of a car yet do not have the financial resources to get one, they can opt to apply for a car loan from reliable financing companies like Capitalife.


How Fast Cash Personal Loans Are the Solution to Financial Problems

The great advantage of fast cash personal loans is that financial emergencies can be dealt with as expediently as possible. Of course, as with all loans, it is necessary to qualify for approval before being able to access them, but they can alleviate the financial pressures of life.

The attraction from borrowers is understandably strong, but it is worth keeping in mind that there are serious aspects to. So, while there is fast approval, there is also fast repayment required. It is a matter of working out whether this kind of loan is the right one for the particular situation.

Fast Cash Means A Fast Solution

There is no doubt that the existence of fast cash personal loans means that millions of people have a chance to improve their financial status. And the harsh realities have it that access to a source of relief funds is considerable.

There are plenty of types of financial emergencies, like a family member being hospitalized, prompting huge medical bills. So, when it is possible to get a fast approval, an avenue opens up that those who are in a tight spot are only too happy to get onto.

Also known as payday loans, these loans offer cash advances on paychecks, thus provide funds at the time that they are most needed. The loan is then repaid when the next paycheck is deposited into the bank account of the borrower, with the necessary sum usually automatically withdrawn.

Limited Loans Available

While there is an obvious attraction to fast cash personal loans, there are some points that need to be taken to mind before the true benefit can be assessed. For example, those who are in need of large sums of money - perhaps as much as $50,000 - would not be able to benefit. The fact is that loans of this type are for smaller sums, with lenders usually setting a maximum of $1,500.

The reality is that fast approvals will only be given on applications that have only a small risk associated with it. The smaller the sum, the smaller the risk, as far as a lender is concerned. And as regards the perceived level of risk, the fact that the loan is set to repaid in full within a matter of weeks of the transaction, there was a genuine confidence that the borrower will not default.

The fact that these are payday loans mean that repayment is made as soon as the next paycheck is received. For this reason, the principal criteria for lenders is income and not credit history.

Where to Find a Lender

When it comes to finding a lender who is willing to approve a fast cash personal loan, there are a number of places to look. Many independent loan companies specialize in this type of loan, but they are rarely found alongside the traditional lending institutions. They are more easily found online.

Online lending firms have developed a highly competitive loan products, that allow them to compete with the larger banks. Part of their advantage is that they ignore credit ratings, and as such they are also able to offer fast approvals. With lower overheads, they are also able to charge lower interest rates.

The great advantage of online lenders is that the best options can be quickly identified, thanks mainly to the comparison sites that exist. Once the right loan is identified, and the key criteria of gainful employment and working bank account are provided, approval is almost certain.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com



Best Fixed Home Equity Loan Rate - 3 Hints for Finding the Best Rate

A home equity loan allows a homeowner to use the equity they have built up over several years living in their home as collateral for a second mortgage. Homeowners can essentially inject liquidity into their asset holdings, freeing up cash for investments or to cover expenses. This can be a great way for homeowners to cover unexpected costs such as medical bills, or help put their children through college. Many people are unsure how to find the best fixed home equity loan rate. Here are three hints to help you find the best rate to suit your long-term financial plans.

Loan rates are determined by many factors

The rate equity loan rate that your mortgage broker will quote you is based on a number of different factors. Banks and lenders use a variety of methods to calculate their own interest rates, understanding their processes allow you to better negotiate your loan terms to get the best deal for you. Typically, the lender will begin with the prime rate of interest set by the Federal Reserve. This prime rate is the benchmark, or the rate that the bank would charge to customers with perfect credit. The bank will then consider their own risk in lending, given the current economic climate and make adjustments to protect their bottom line.

Finally, the bank will take a look at your credit profile to see how great a risk you will pose as a loan borrower. Depending on your current ratio of assets and liabilities, your history of making payments on time, and your credit score, the bank will then determine the risk that your loan would impose on them, and offer you the effective interest rate that will be signed into contract. Luckily, you can choose different loan options and terms to negotiate a lower rate to some degree.

Fixed vs. Variable Rate Interest Loans

Fixed rate mortgages are fairly simple. The effective rate of interest listed on the loan contract is the rate you pay for the duration of the loan. It never changes, unless you take on another mortgage. A variable rate, on the other hand, fluctuates with the market, and allows the banks to stay profitable in bad times by raising your interest rate. Usually and adjustable rate mortgage or ARM has a cheaper interest rate than its fixed counterpart.

Furthermore, an ARM can modified to limit the amount it can be adjusted in a given time period, or even grant you the ability to convert it to a fixed rate after a few years, to help you mitigate the risks of a volatile economy. In general, all ARMs adjust in an upward trend over time, whereas a fixed rate mortgage holds far less risk. If you plan to have more money in the future, you can often take advantage of an ARM to pay a lower rate in the first few years of the loan.

Get Multiple Quotes

Finally, you can often get lower rates and better terms simply by shopping around. If you are comfortable doing so, you can often find, apply for, and receive your equity loan entirely online. Online lenders have lower overhead costs than traditional banks, so they can usually offer better terms and lower rates. Get several quotes from both online and traditional lenders. If you are not confident navigating loan terms and rates, you might consider speaking with a mortgage broker who can educate you and shop from many different lenders to find the best rates and terms to meet your needs.

To find out how to get the best interest rate on your home equity loan visit BadCredityEquityLoanApproval.com today!

Before Buying a New Car, Why Not Rent It First?

Buying a new car can be a difficult and worrisome event. Trying to decide what model and style car you want, what options you need, and how much you want to spend can take a significant amount of time and effort. Then once you decide on all those factors, now it's time to go to the car dealership lots and talk to the salesperson and take a test drive. Once around the block and you have to try and make up your mind if this is the car for you. Why not try renting a few models first and give them a more complete test drive? A car is something you are going to have to drive for a few years, so it should be the one that fits you best, not necessarily the one the salesman is trying to sell you.

Rental Strategy 

Wouldn't it be nice to try out your normal commute to work as a test drive? If you rent the car for a few days, you can certainly do this. It's a good way to get a feel as to the gas mileage associated with your new car and commute. Since most people spend a significant amount of time in their car commuting to work, now is also a good time to determine if you can be comfortable in the car. Is the road noise too much while on the highway? Is the ride too rough or stiff for you to be comfortable? Does the seat and steering wheel adjust properly to your height and weight? These are all factors that should be considered when test driving your potential new car. This is the advantage of renting for a few days first.

Model Selection 

In the past, most US based car rental companies would only have US model cars. So, if you were looking to rent a foreign model, you wouldn't be able to. More recently, the US car manufacturers have reduced the number of cars they sell to fleets. This means that the rental agencies have to supplement their fleet vehicles with foreign models. So you are more likely to find Toyotas, Nissans and Hondas on the rental lot than ever before. Most rental agencies also try to keep their fleet up to date, so your chance of finding the car you are looking to buy available for rent is very high.

The easiest way to find the model you are looking for is to call your local agent. Ask if they have the year model you are looking for on the lot today. If they do, be prepared to make a trip to the rental lot. Once you are in the car, you can compare the features of the car you are driving versus the car that you are looking to buy. There may be some minor cosmetic differences between the two models. Minor differences such as cloth versus leather seating can be a factor you can overlook in the rental. However, there is a significant difference between a 4 cylinder and a 6 cylinder and it should be a deciding factor that you can experience firsthand while renting.

If you can, you should definitely rent a variety of vehicles before purchasing anything. You may determine that a particular style of vehicle, while it may look good on paper and have all the features you want, might not fit into your daily driving needs.

Ashley Lena is a Business Consultant, Philanthropist and she runs a Think Tank, as well as do a lot of Traveling, Writing, Cycling, Flying, Volunteering & enjoy life to the fullest. Have dabbled in local and regional politics.