Get a Low Interest Bad Credit Loan in Four Easy Steps

Many people with bad credit feel that getting a quick bad credit personal loan will help them to stay financially afloat. However, they fail to realize that in the act of taking on this additional financial responsibility they put themselves at extreme risk for the future. Though taking an unsecured loan does not risk your home or car as a secured loan will, it is still a really big decision that should not be taken lightly.

There Are Options Available

The good news is that many private lenders are more than happy to extend credit to those in need regardless of their financial past. The difference between these lenders is in the rates, terms and ultimate amount of money that they will offer. If you want to find a loan at a low APR (annual percentage rate) despite your bad credit, you can do so through a simple four-step procedure.

Step One: Find the Right Lender

With all the options available on the internet today, finding a good lender is harder than a lot of people think. It is extremely important that you do background research into anyone you consider taking money from in order to ensure that they are legitimate and not trying to scam you.

One way to conduct such a search is through the Better Business Bureau (or BBB). There is a search tool located directly on the BBB website that will allow you to do a simple background check and get the basic information for a number of lenders. Consider using the search terms, personal loan or bad credit loan.

Once you have identified a few possibilities, take a note of all pertinent information such as their physical address and telephone numbers.

Step Two: Call Potential Lenders

The next step is to make contact with the lenders you have selected. Sometimes it is better to call them rather than filling out an online form since you protect your information and are able to feel out the business better. Make sure you are upfront about your needs and situation.

There are several items you should be prepared to discuss:

- Ask specifically about bad credit lending options and know and offer your FICO score.

- Ask about the APR that they offer for such bad credit loans and whether or not the rate is fixed (variable rates are big trouble!)

- Ask them about the payment plans they offer and know how much you can afford each month.

- Ask about the benefits in terms of total cost that would occur if you were able to find a cosigner.

Step Three: Get a Quote

After discussing the above issues, you will need to get a quote from the lender. This can be either a verbal offer or they can mail or email you a formal quote. The point is to have a basis upon which to compare the rates and terms offered by each of the lenders you contact.

Step Four: Compare Rates

After all this information gathering lay out all the plans that different lenders have offered you and find the one that best suits your needs. You obviously want a low APR, but it needs to be fixed and the term of the loan has to be long enough that you can reasonable expect to make the payments on time and in full each month.

Benefits of This Approach

Remember what I said in the introduction, taking a loan is serious business. If you have bad credit, you need to do your homework and make sure you get the best deal possible. This systematic approach will get you on the right path to finding the loan that you need at a rate you can afford without risking your credit even further.

Bad Credit Loans – Get the Right Financial Decision Now!

A loan borrower with a bad credit history who is frequently reminded of his delayed loan repayments finds it hard to maintain a smooth flow of income, from salary and other sources, if the income is variable or a financial disaster has hurt him. Most of the leading banks and financial institutions do not offer any more loans to these people and with no financial aid from any quarters, the vicious circle of financial embarrassment continues.

However, in the recent times some of the banks and financial institutions have introduced Bad Credit Loans to these borrowers. The interest rates of these loans may be a bit higher than that of the low rate loans. But, these loans allow a borrower to regain his financial standing and visibility. The information about these Bad Credit Loans can easily be availed on the Internet or from a financial expert. The advice of friends, relatives and colleagues or an ex-borrower who has now came out of the shackles of financial embarrassment is highly recommended.

The bad credit loans can be taken for any legal purpose such as home renovation, car maintenance, wedding or social occasions. A prospective loan borrower, who has a bad credit history, can seek information and take these loans after making an application to the concerned bank or financial institution. After the scrutiny of the documents and claims provided by the borrower has been done, the bank/financial institution allow a borrower to meet his financial ends with a loan. However, one thing to be kept in mind is that a borrower must not limit his options to a few lending institutions as this eventually limit the best-bargained loan deals and low rate loans. The borrower must also analysis his present and expected financial standing, his sources of income and other material/immaterial facts. This will definitely help him to manage his finances and to regain his financial worth.

It is imperative that a borrower struggling to meet his ends must think calmly about his past financial decisions for a while. This must be followed by a possible visit to a legal expert to ascertain what went wrong if the analysis done by him fails to bring the critical points.

If a borrower is looking for the low rate loans then secured bad credit loans can be excellent options for him. These types of loans can be availed by pledging a security such as a house. The ownership rights of the security in question are transferred to the lender and the rights return to the borrower as and when he makes the full loan repayment. Another option is the unsecured bad credit loans, these loans can be availed without the involvement of any kind of security and come at higher interest rates since no security is involved to guard the financial interests of the lender.

To summarize, it can be said that a wrong decision of the past can indeed corrected by a right decision of the present to make a bright future ahead.

How to Get a Bad Credit Loan

I remember years ago when I stepped into our local, hometown bank to get my first loan. I remember sitting in front of the president of the bank who was also the loan officer, giving him all of my information: my date of birth, my telephone number, my address, my social security number, and a host of other information. After giving him a ton of information he was finally able to request a loan from the under-signers.

I sat in front of him for what seemed like an eternity waiting the reply. We sat there and talked about things around town and about what was going on in the area. Finally, a reply came back. I will never forget the words of that loan officer, “Sorry, they won’t give you the loan. You don’t have any credit.” What he was telling me, was not only that I didn’t have any credit, but that meant that my credit was poor.

What is an eighteen year old supposed to do? How are you supposed to get good credit when no one will give you a loan or a credit card because you don’t have sufficient credit?

Thankfully, that day many years ago, my father was sitting in the office with me. He looked at the loan officer and said, “What if I would co-sign for him? Then would they be willing to give him the loan?”

The loan officer seemed to think that was a good idea and began the process once again, this time getting all of the information from my Dad. We sat again waiting and waiting for an answer. Finally, the answer came through, “you have been approved as long as you have a co-signer.”

That day I was able to get my first loan for $1,000 even though I had bad or no credit. But how?

By using the good credit of someone else. This is basically what I did in the story above. I was able to get that $1,000 loan on the good credit of my father. By having a co-signer the bank or the people lending the money were assured that someone would pay. They were able to look at my father’s history of paying loans and credit cards and bills and assure themselves that if I would fault, my father would pay in my stead. My father, the co-signer, was acting as the security for the loan, even though it was an Unsecured Bad Credit Loan.

Many years have passed and times have certainly changed, but having a co-signer is STILL a great way to get a loan if you have bad or no credit. Go on a search for someone who would be willing, your father or mother, your grandfather or father-in-law or an aunt or uncle or maybe just a good friend. Go to them and explain your situation. Explain why you have bad credit and how you got into your present situation. Tell them that you want to straighten your credit out and that this would be the first step.

Rest assured that Banks are in the business of giving Loans. Without this aspect of their business they could not continue doing what they are doing. Even in the midst of a bad economy it is possible to get a loan with poor credit. You just have to go about it in the right way.