Skip to content

Bad credit history loans provide a means of borrowing money when an individual has failed to comply with the T&C’s of a credit agreement. This could be as little as a late payment to filing for chapter 7 bankruptcy. The more serious the credit transgression, the more expensive it will be to borrow money. However, there are a number of bad credit lenders who are prepared to take on this risk.

Bad Credit History Loans

Finding loans for people with poor credit is more difficult, but it needn’t be an insurmountable obstacle. Whilst poor credit secured loans are an option for a homeowner, there are also a number of adverse credit unsecured loans available for tenants. It is possible to borrow money from, Credit Unions, pawnbrokers or a same day payday loan lender. Some lenders don’t perform credit checks.

Loans for People with Poor Credit

  • Pawnbroker loans. Adverse credit history isn’t an issue when borrowing money from a pawnbroker because there is no credit check. The borrower provides collateral, such as gold or jewelry, to get a poor credit secured loan. The amount that can be borrowed will depend upon the value of the asset, but some loans are for upwards of $10,000. The larger the sum of money borrowed, the lower the APR. Interest rates vary considerably between lender, but 70% is about average.
  • Prosper loans. Rather than borrowing money from a bank, it is possible to get a bad credit history loan from a peer-to-peer lender. A credit check determines the category the borrower falls into. Whilst Prosper no longer assists those with very poor credit, they can assist those with a credit score rating that is below average.
  • Same day payday loans. Given that the APR is over 1000%, it is normally only feasible to borrow money over a month or less. Payday loan providers will lend as much as $1,000 without the need for a credit check. Applicants will need to be U.S. citizens, in full-time employment and be in a position to provide photo identification.
  • Credit Union loans. It is necessary to join a Credit Union on the basis of a common interest, such as locality or employment. Once a member, it is possible to get a bad credit history loan, provided that the borrower is able to demonstrate affordability. Unlike private lenders, they exist purely to serve the interests of their members and not to make a profit.

Poor Credit Secured Loans

Provided that a homeowner has sufficient home equity, it is possible to get a loan for people with poor credit. The provision of collateral reduces the lending risk as the lender is able to sell the asset to recover any money they have lent. Other secured loan criteria include a stable employment history and affordability. Always think carefully before taking out a loan that is secured on the family home.

Whilst there are a number of bad credit history loans available, the cost of borrowing will be higher. This means that it is important to establish affordability prior to signing up, particularly if considering a poor credit secured loan.

May 31, 2017 / admin

Lenders report to credit reference agencies with respect to whether a payment has been made punctually each month. Missed and late payments make borrowing money far more difficult. However, there are several providers of small cash loans for people with poor credit that don’t make lending decisions on the basis of credit scoring. Whilst no credit check finance vastly increases the likelihood of approval, it also means that the lender faces a greater risk of default. Bad credit history loans cost more, but can provide a potential lifeline in the event of a financial emergency.

Small Cash Loans for People with Poor Credit

It is possible to get a credit union, pawnbroker or quick cash payday loans UK to help with unexpected bills. The high rate of interest means it should only be considered a short term loan. There are no restrictions in terms of what the money can be used for, but paying back the principal and any interest that has accrued will leave less money to pay the bills the month after. Never take out a bad credit history loan for an impulse purchase, only use it to cover essential bills when personal finances are a little tight.

Same Day Unsecured Loans from a Payday Lender

In order to qualify for a quick cash payday loan, the borrower will need to pass a set of eligibility criteria. He/she must be an American citizen, at least 18 years old, have a full-time income, have their own valid checking account and be able to provide 2 forms of identification. Those who are able to comply will be eligible for a small cash loan of up to $1,000. The monthly rate of interest is approximately 20-25%. The lender requires a postdated check for the balance plus any interest that is set to clear on payday.

Bad Credit History Loans from Credit Unions

In order to become eligible for a credit union loan, it is necessary to become a member. People join on the basis of a shared interest, such as working for the same company or living in a certain area. The high administrative costs, relative to the length and value of a small cash loan, means that the APR is almost identical to a quick cash payday loan. The advantage of borrowing money from a credit union is that they don’t operate for the purpose of profit and will show greater understanding in the event of money worries. They will also take greater time to assess whether this type of loan is affordable.

Pawn Shop Loans for People with Poor Credit

Unlike a quick cash payday loan, the customer will be expected to provide the lender with a source of collateral (gold, jewelry, electrical equipment or even a whole life insurance policy). Once the agent has assessed the value of the collateral, they will advise how much money can be borrowed. The APR on a pawnbroker loan is roughly the same as others, but the lending criteria are more relaxed. Failing to redeem the item will result in it being sold to recover any money that was borrowed.

March 1, 2017 / admin

As most people already know, credit problems and poor credit scores can cause a lot of difficulty to someone. You could be rejected for credit and if you are lucky enough to get approved, then you have higher interest rates and bigger deposits you have to pay. All this kind of stuff can cause a lot of chaos in someone’s life. For those of you who are wondering, there are some ways to repair your credit, but no magic wand.

Of course, the first thing you would want to do is get a credit report to see what you are working with. You should get three credit reports. Each of the reports will come separately from the three major credit-reporting agencies, which are Experian, TransUnion, and Equifax. Each year you are an entitled a free report, or you could choose to have them come in a combined report for a fee.

After you get the credit report back, make sure that everything it contains is accurate, since over 70% of credit reports have unrelated information. These may ultimately be the cause of your problem. Accuracy is not a quality of credit reports.

Many are not aware of the fact that credit-reporting agencies put together information and sell it. Whether the information is accurate remains irrelevant to them, since their payment depends on the information they provide and not accuracy. Really, the only person who cares about the accuracy of the information on credit reports is you.

This is where the Fair Credit Reporting Act comes in. Originally, they established as a way to help you to know what is on your credit report and gives you the right to dispute information within it. Legally, the only information that can stay on your report if you dispute it is not what they consider accurate, but the information that they prove as accurate.

The law gives you the right to dispute any of the information on your credit report. This process simply asks them to prove the information as accurate on your report. Any proof for information on there that they cannot prove, they must remove.

This gives you an advantage, if you decide to dispute information on your credit report. Essentially, disputes cost money to the credit bureaus and collection agencies, regardless to how it turns out and they cannot recover this money. This is part of doing business, but for the most part are geared less in their favor. They do not like handling disputes, due to loss and gives the smart consumer an advantage.

Despite the accuracy of your credit report, there is no one that cares other than you. You have the choice to repair you credit by the help of a credit-repairing agency or on your own. Take the initiative to repair as much as you can on your credit report, rather than having to deal with the problems.

/ admin