Many of us have been there; struggling to make ends meet, bills piled high, many of which just can’t be paid, credit cards with balances that can’t seem to be met. These things accumulate and turn the credit report on its head – making good credit not so good credit. Once this has occurred, even if you’ve managed to get things back on track, it can take time to rebuild credit. If you’re looking for a loan in the interim, you may be finding it harder than you initially thought.
Bad credit loans are the loans given to those with not so stellar credit. It’s pretty straightforward. The problem is, when credit is bad, you, as a borrower, represent a greater risk to lenders than someone who has good credit. As a result, these loans can be harder to get and often lenders will take advantage of your strained circumstances. Just remember, not all lenders are out to gouge you.
Who offers bad credit loans? Obviously the bank is not going to make this list, but there are a few others – and not all are created equal.
- Payday loan companies. Payday loans are honestly the worst type of credit product. Not only do these not report to the credit report, thereby making any positive credit behaviour worthless as far as rebuilding credit, they also come with sky high fees. Not only are the fees astronomical, they are so expensive that they are, for most, so difficult to pay off on your next pay period that you’ll end up turning the loan over and incurring even more fees. This quickly become a vicious cycle. Stay away, far way.
- Cheque cashing companies. Some will offer personal loans, but at high APRs. They are also far less likely to help a previous bankrupt, and most won’t help an undischarged bankrupt at all.
- Finance companies. Here is where the most diversity exists. While many will offer personal loans, the fees may be high, and many won’t touch bankrupts – whether undischarged or not. It is important to find the one that will help you out, without taking advantage.
How do you know? The terms matter – what is important is dealing with a company that cares about your financial health:
- Accessibility – Your cash is available fast
- Short repayment terms – to see you get out of debt
- Reports to the credit report – positive payments help you rebuild credit
- Flexibility – looks at all of your application criteria, not just the credit report
At Prudent Financial, we are committed to helping you rebuild your finances, without taking advantage. We help many individuals with bad credit loans, even undischarged bankrupts.
Call us today to find out more: 1-888-852-7647.