It can be hard to get a loan approved sometimes. If you've moved and changed jobs a lot, are self-employed, or have a bad credit history, our team of top lenders will look at each application individually and take everything into account. Poor credit loans could give you the money you need to fix up your house, take a much-needed vacation, or pay off credit card and store card debts that are getting out of hand.
With bad credit loans, you have a few choices. If you own your own home, you might want to look into a secured loan. This means that you will use your home as security for the loan. Because the lender is taking less risk, you will get a lower interest rate. This is probably the least expensive thing you can do. You should know, though, that if you can't make the payments on poor credit loans and don't pay back the loan, your home could be taken away. Unsecured loans don't need any collateral or security to back them up, but because the lender is taking on a lot more risk, the interest rates are usually higher than for secured loans. Before you agree to the loan, it's very important to make sure you can pay back the money.
If you're looking into poor credit loans because it's hard to pay all your creditors every month, a debt consolidation loan might help you get things under control. You might find that your monthly payments are less than what you're paying now, and that the new loan will relieve some of the pressure from your other creditors. You will pay for it over a longer time, though. The first step is to figure out how much you owe right now. You can do this by asking each of your creditors for a settlement amount. Some creditors will charge you extra fees if you pay off your debt before the agreed-upon date. These fees won't show up in your balance. Once you have the total, you'll know how much you need to borrow to pay off the lot. Make a list of your income and expenses to make sure you can afford the payments on a new loan.
Loans for people with bad credit are paid back every month, and the lender will charge interest. This is called the Annual Percentage Rate (APR), and the exact interest rate you are given will depend on how much money you want to borrow, how long it will take you to pay it back, and how the lending company thinks you will be able to pay back the loan as agreed. APRs are a good way to compare loans for people with bad credit from different lenders. The average interest rate only gives you an idea of what most successful applicants have been given in the past, but it will show you how competitive the different lenders are. Lenders will also talk about fixed and variable interest rates. If you know what these terms mean, it could help you choose the best loan. A variable interest rate is tied to the bank base rate. This means that the monthly payment on a loan could go up or down depending on what happens to the base rate. On the other hand, a fixed rate means that your monthly payments won't change no matter what happens to the bank base rate.
