If you are facing a short term cash bind, and have less than perfect credit that you do not need to resort to expensive payday loans to meet that cash obligation? Personal loans are still an option for you, even with bad credit. While it is true that you will not be able to apply to every personal loan lender on the market, many personal loan lenders today are more than willing to work with those with poor credit. We feature reviews of several personal loan lenders on this very website who work with people with credit scores as low as 580!
These lenders examine a number of factors other than your credit score, when it comes down to deciding on whether or not to extend a loan to you or not. Many of these same lenders once upon a time only loaned to those with perfect credit, but this results in a lower profit margin. Many of these lenders have learned that people are more than the sum of their credit score, and that good people have made some credit mistakes, and desire a second chance.
Finding the best personal loan for those with bad credit means finding a reputable lender. You want a lender who has a good reputation, a good standing in the financial community. Finding a lender that is transparent about their fees, rates and terms is also very important when it comes down to selecting the right lender. Some lenders will try and obscure the true cost of a loan through expensive and high fees for example, while giving out a low teaser interest rate, which does not reflect the overall APR due to the hidden fees. Of course any personal loan for those with bad credit will carry a higher interest rate and a higher APR than the same loan made to someone with perfect credit, you will still have many options when it comes to personal loans.
You should avoid predatory lenders, such as payday loan lenders if you are in a bind. Payday loan lenders can have interest rates upwards of 700% or higher. Such interest rates can just send you into a worse financial problem then the one you are addressing via a payday loan. Even with the higher interest rates offered on a personal loan for those with bad credit, the interest will be no where as near high as what a payday loan lender charges. It is very common to see interest rates on personal loans for those with bad credit higher than 24%, but this is much less than 400%, 500% or higher than 700% that payday loan lenders charge. You want to escape and get out of a debt cycle, not get sucked into another bad debt cycle. Personal loans carry a fair and fixed interest rate, with manageable payment amounts.
If you are in need of cash today, take a moment and review some of the personal loan lenders featured on this website. You can not only address the financial needs you have, but also save money on interest when compared to credit cards or payday loans. You can even help boost your credit with the responsible repayment of a personal loan.
