Millions of U.S. citizens are excluded from mainstream borrowing sources due to missed or late payments on past and existing credit agreements. Some adverse credit entries will show on credit reports for as long as 10 years. Finding a bad credit lender who is prepared to offer guaranteed online personal loans can present a challenge when struggling with urgent money problems, but they are available.
Where to Get Bad Credit History Unsecured Loans
Whilst borrowing sources aren’t as well advertised as secured bad credit bank loans for homeowners, it is relatively easy get a bad credit history unsecured loan. The most readily accessible borrowing sources are credit union loans and same day Payday loans. It is important to note that the greater risk posed to the lender means that a higher APR will be charged. Failure to pay this back promptly will mean that personal debt will quickly escalate.
Credit Union Loans
Individuals join a Credit Union on the basis of a shared common interest. Whilst the most common reasons for membership are locality and employment, it is possible to join on the basis of being related to someone who is already a member. For example, being related to a teacher who is a member.
Credit Unions aren’t traditional bad credit lenders in the way that same day Payday loan providers are. Whilst they offer bad credit history unsecured loans, they lend on the basis of a careful assessment of whether it is in the best financial interests of the member. They are a non-profit organization that works for its members.
The interest rate on Credit Union loans is very favorable so it should be someone’s first choice bad credit lender. Whilst it in no way provides a fast loan, it offers an affordable way to borrow money. If someone encounters financial difficulties, a Credit Union will sympathetically work with the debtor to overcome any problems.
Same Day Payday Loans
This can be a guaranteed online personal loan provided that the applicant has access to a FAX machine. However, it is also readily available at many high street outlets. The criteria are as follows:
- A U.S. citizen.
- At least 18 years of age.
- A full-time job.
- 2 forms of identification, including at least one form of photo ID.
- A valid checking account.
Provided that an applicant is able to comply with the above criteria, they are guaranteed to be accepted for a bad credit history unsecured loan. The rate of APR is typically 300-400%, although this can vary considerably between providers.
According to an article in the LA Times: “A $255 loan typically carries a $45 fee from a payday lender; if the same amount were charged to a credit card and paid off a month later, the cost would be about $4.” In short, this is an expensive way to borrow money which is why the term of the loan is just a month.
The borrower will need to provide the same day Payday loan provider with a postdated check for the full amount and a 15% premium. This check will clear to coincide with payday.
Bad credit history unsecured loans are available from same day Payday loan providers and Credit Unions. Whilst the latter will offer a vastly more favorable rate and a longer repayment term, Payday loans are available at far shorter notice. Avoid guaranteed online personal loans for frivolous purchases; they should only be taken out in an absolute emergency, such as paying the rent or mortgage.
Categories: critical finances