If you have a bad credit history, or are considered a high risk borrower, getting a loan without any hassle may be next to impossible. People who have a poor credit history may simply get rejected by lenders, or if they do get accepted, the lender usually asks for so many documents, that it becomes next to impossible for the borrower to arrange them in a short period of time, like in the case of an emergency. Other lenders will ask for your home as collateral, and the high interest rates may be so difficult to pay off that you might end up losing your home in the end.
Before you look for a lender who will be willing to give you a loan despite your bad credit history, your first priority should be to look to those you know. If you have a friend or family member who can provide you with cash up front, that is your best option. Loans taken from a friend or family member usually have little or no interest rate and you can pay them flexibly at your own ease. Your friend or relative will also understand any personal problems which led to your bad credit history such as an illness, or sudden loss of job. But before you borrow money from a friend or relative, you should also consider the fact that it can lead to feuds, especially if you are not able to pay back on time.
If you have a history of bad credit, but are in urgent need of money, there is still hope for you. There are a number of companies that offer high risk loans, especially to borrowers who have a poor credit history. Whether you are planning for a vacation, need money for an emergency, want to pay another debt, or have to pay for a wedding, education or any other kind of unexpected expense, you can avail high risk loans with flexible terms and conditions.
High risk loan lenders also have some conditions which have to be met for the application to be processed and approved. The criterion to get a high risk loan includes the individual to be at least 18 years old with a regular minimum income of $1,000 per month. High risk lenders also require that the borrower hold a valid bank account. These high risk lenders understand that a history of bad credit may not entirely be your fault. Moreover, your financial condition could have improved now, but your bad credit history will still prevent banks and other lenders to lend you money. If that is the case, then high risk loans are the right option to go for.
There are two types of loans available to high risk borrowers: unsecured loans and bad credit loans. Unsecured loans are collateral free and any borrower who is employed can take up an unsecured loan without pledging any assets. These unsecured loans make it possible for non-homeowners and tenants to borrow money easily which can range up to $1000-$25000. High risk personal loans can be paid back in a period of 6 months to 10 years.
Photo by: Philip Taylor