If you have a job, checking account, and / or vehicle title but have bad credit, payday advance companies or car title loan companies may target you. Some of the companies that offer personal loans for bad credit have been investigated by the Federal Trade Commission. The fees that businesses charge for these small bad credit loans are much higher than the fees that banks and other lenders charge for standard loans. These personal loans for bad credit cases have been called debt trap. Before taking one of these small bad credit loans, consider your options.
If you have a job and a checking account, talk to your bank first. Just because you have bad credit doesn’t mean they won’t approve a small loan. If you have a clear title to a vehicle, your chances of getting approved are even better. Many people think that because they have bad credit, they will automatically be turned down by a commercial bank or lending institution. They think they will only qualify with companies that advertise “no credit check”, personal loans for bad credit or small loans for bad credit risks. The truth is, lenders consider different factors when approving loans. If your application is approved and you make your loan payments on time, you will also be building good credit. Payday advances and other small bad credit loans do not report to credit reporting agencies. They will not help you improve your credit score.
If the bank does not approve your application, consider asking a friend or family member for a loan. You can draft a promissory note that will be legally binding. If you need money quickly to pay your mortgage, rent, utilities, or another creditor, talk to them first. If you just need a little more time to pay, they will usually work with you. A late payment fee will be less than the fees charged by a company that offers personal loans for bad credit.
If you are on active duty or retired military, there are emergency funds available. Check with your commanding officer. In fact, companies that offer payday advances and other small loans for bad credit risks must inform military personnel that they have other options.
If you must take out one of the personal bad credit loans, borrow only what you must have to overcome this emergency situation. Borrow only what you can afford on your next payday. Companies that offer payday advances and other small loans for bad credit risks charge rollover fees if you can’t pay on your next payday. Because of these rollover fees, people have paid up to $ 60 to borrow $ 100. The rollover fee does not apply to their balance. You cannot make partial payments on these bad credit personal loans. They must be paid in full.
If you are looking for small loans for bad credit risks, then your real problem is bad credit. Once you get over this emergency situation, consider making efforts to repair your credit score. There are do-it-yourself teams and companies that offer bad credit repairs. It is possible to improve negative credit scores. It takes time, patience, and a little knowledge, but it’s worth the effort. Credit repair will likely cost less than the rates charged by companies that offer bad credit personal loans and will save you money in the long run. For more information, visit Credit Fix Solutions.
