If you have poor credit, you may think that you have only two options when it comes to borrowing money. You can either get turned down for anything that you apply for or you can get approved but pay exorbitant interest rates.
The truth is that if you look carefully, you will find that there are actually some top rated bad credit loans available. They will allow you to get the money you need without paying ridiculous interest rates.
Searching for a Bad Credit Loan
When it comes to searching for loans for bad credit, the Internet can be a wonderful resource. However, you might also want to visit some in-store lenders in your area. There are several nationwide chains that offer loans for people with all kinds of credit issues.
What makes this a good option is that you can walk in and speak to someone about the products they offer. Some places can loan money as cash advances and others can do payday loans as well as installment loans.
Installment loans can often be obtained in sums that vary from about $2,600 to about $5,000. The actual amount that the lender is willing to loan typically depends on the person’s credit. The lower your score, the less money you will be able to borrow.
In addition to short-term lending locations, there are branches of low-credit lenders that offer installment loans up to $10,000 or more. These lenders may not have a credit score limit but they will need to see more verification regarding your income than traditional in-store payday lenders. You most likely need to submit a copy of your recent tax returns and recent bank statements to apply.
These are good options because most of these in-store or stand-alone lending companies already have good reputations or they would not still be in business. When you go online to search for lenders, the process of finding good top rated bad credit loans can be more difficult.
You will probably find websites for any of the lenders that you visited in person. These will offer you clear, written terms and rates on the available loan products.
As for other lenders, you may be attracted to the terms, but you may never have heard of them. Be sure to research the lender further by looking for their information on the Better Business Bureau website.
A new lender may be perfectly legitimate and may be fully licensed, but you do want to be careful. There are some loans that are offered to people with bad credit that automatically renew, for example. Unless you want a product like this, you must be very careful about applying for and accepting any loan that you get online.
Another aspect of many bad credit loans is that they make borrowers pay bi-monthly. To save money on interest rates, you may also need to have your payments automatically withdrawn from your bank account.
Take time to research loans. You will eventually find a decent loan for yourself no matter how low your credit score is.