Even if you've been turned down for a loan somewhere else, our top lenders may still let you get one of our bad credit loans. We have a wide range of products, loan amounts, and terms for paying them back, and our team of experts will do their best to find you the best product with the lowest interest rate.
There are two main kinds of loans: secured loans and unsecured loans. Most people who get secured loans are homeowners because they use their home as security or collateral for the loan. Since the lender is protected if the borrower can't pay back the loan, this is a relatively low risk for the lender. As a result, interest rates are lower for secured adverse credit loans. Unsecured loans don't need collateral to be paid back, but the interest rates are higher because the lending company is taking on more risk.
You might be looking at loans for people with bad credit because you want to combine debts from credit cards, store cards, and other loans. If you can't make your monthly payments to your creditors, you might be able to get a debt consolidation loan. You might be able to lower your monthly payments so that they are less than the total amount of your debts, but you will have to pay for a lot longer. These loans also make it so you only have to deal with one creditor instead of all of your current ones, which may be putting you under a lot of stress. Before you can find out how much bad credit loans will cost you, you need to know how much you already owe. Ask your creditors for settlement numbers instead of balances, because the total must include any fees for paying off your debt early (an amount charged by some creditors if you settle your debt before the initially agreed due date of the loan).
If you want to get a loan with bad credit, you need to make sure you can afford the payments. If you can't, you could lose your home because you can't pay back the loan. A simple list of your monthly income and expenses will also help you get a clear picture of your finances. Don't forget to set aside money for emergencies and other unexpected costs.
If you know the different ways that lenders talk about interest rates, you'll be able to choose the right bad credit loan. The APR, or Annual Percentage Rate, is the percentage that the lending company charges you each month. Even though lenders give typical rates, these are just guides. The APR you get will depend on whether you get a secured or unsecured loan, how much you borrow, how long you borrow it for, and how the lender evaluates your situation and your ability to pay back the loan as agreed. You will also see interest rates that are fixed and those that change. Fixed rates mean that your monthly payments are set at the beginning and won't change no matter what happens to the bank base rate. If you have bad credit and get a loan with a variable interest rate, your monthly payments could go up and down as the bank base rate changes. This could make it hard to stick to a budget, but if interest rates go down, you'll be better off. If they go up, you might have to pay a lot more for your loan.
