I Need A Loan But I Have Bad Credit – What Are My Options?

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Are you looking for a loan to buy a house? Are your bills piling up and giving you sleepless nights? Are there too many small debts that are becoming difficult to track and pay for and you would prefer one single bigger loan to pay them all off? Do you need a personal loan but have bad credit, which is stopping you from handling these situations effectively? We will share with you some small pointers that may help you get out of this jam and manage your finances better.

Check your credit report

When was the last time you procured and analyzed your free credit report? Yes, it is free, available annually and can be procured online, within minutes, from http://www.annualcreditreport.com. So, first step is to get yours and analyze it in detail for any mistakes or oversights by the credit reporting company. Report the eventual mistakes to credit bureau on their web site to help you to eliminate some negatives from your credit report, immediately improving your credit rating. This may help you to get that loan you so badly need. But what do you do if there are no mistakes?

Secure the loan

A secured loan is the answer to your money problems if you need a loan but have bad credit. This is a loan that is linked to something you already own or procure with your new loan, whether it is property, vehicle or jewelry. Why would a lender offer you this loan in spite of your bad credit history? It is because of the assurance that comes with the collateral that you offer. The collateral, by the way, needs to be of higher value than the loan you are taking. The lender knows he can get back his money by claiming and disposing it off, in case you are unable to pay in the future.

Though it is a safe option, not every lender or lending institution may be offering such a product. You will need to put in some work and research to find out the ones that do have such products on offer and to discover the product best suited to your requirement, whether it is for a mortgage or a personal loan. Check for the interest rates before you leap in and take up an offer that ends up costing you more. Preferably, go in for a fixed rate secured loan. Taking on a mortgage also gives you an opportunity to demonstrate your ability to make regular payments on time and improve your credit rating. So next time you won’t be caught saying “I need a loan but I have bad credit.”

Finding an unsecured loan for bad credit requires time and work

Unsecured loans are also available for those that need a personal loan and have bad credit, but don’t own a valuable collateral. But a lot of research needs to go into finding a lender with a lucrative and safe option. As long as you are willing and able to pay off what you borrow, there are several lenders who are ready to help people who need a loan but have bad credit.

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