What You Should Know About Bad Credit Personal Loans If you have a job, a checking account and/or a clear title to a vehicle, but you have bad credit, you may be targeted by payday advance companies or car title loan companies. Some of the companies that offer bad credit personal loans have been investigated by the Federal Trade Commission. The fees charged by companies for these small loans for bad credit risks are much higher than the fees charged by banks and other lending institutions for standard loans. These bad credit personal loans have been called a debt trap. Before you take one of these small loans for bad credit, consider your options.
http://www.badcreditresources.com/bad-credit-personal-loans.html If you have a job and a checking account, talk to your bank first. Just because you have bad credit does not mean that they will not approve a small loan. If you have a clear title to a vehicle, then the chances of your being approved are even better. Many people think that because they have bad credit, they will automatically be rejected by a commercial bank or lending institution. They think that they will only qualify with companies that advertise "no credit check", bad credit personal loans or small loans for bad credit risks. The truth is that lenders consider different factors when approving loans. If they do approve your application and you make your loan payments on time, then you will also be building a good credit history. Payday advance and other small loans for bad credit risks do not report to the credit bureaus. They will not help you improve your credit score. If the bank will not approve your application, consider borrowing from a friend or family member. You can write up a promissory note that will be legally binding. If you need money quickly to pay mortgage, rent, utilities or another creditor, talk to them first. If you just need a little extra time to pay, then they will usually work with you. A late fee will be less than the fees charged by a company offering bad credit personal loans. If you are active duty or retired military, there are emergency funds available. Check with your commanding officer. In fact, companies that offer payday advance and other small loans for bad credit risks are required to inform military personnel that they have other options. If you must take one of the bad credit personal loans, borrow only what you must have to get through this emergency situation. Borrow only what you can afford to pay back on your next payday. Companies