Have you noticed the stock market lately? It’s hard not to. Every day you look at the news and there is another story about a Wall Street meltdown. Meanwhile, here on Main Street, the need for money has never been greater. Many people these days are finding themselves in situations that require a personal loan of some caliber. For those with bad credit, personal loans are even harder to come by, if not impossible. Yet, there are still options out there. Even in today’s rusty, crazy market, bad credit is not an end. You may even qualify for $10,000. You just never know until you look.
Understanding Bad Credit
Bad credit, technically speaking, is any FICO score that rates below 600. Only those with scores above 720 are considered “excellent,” however, which means there is a lot of wiggle room in the middle. Bad credit is usually generated from a few main factors. The first is stretching what credit you do have to its limit. That is, maxing out your credit cards and only making the minimum payments each month. The other big issue in the credit rating game is habitual late payments on accounts and delinquent accounts. One or two late payments are no big deal, but if it is a habit, then your credit score will suffer.
One great way to combat all of these credit killer problems is through debt consolidation. That is, rather than hold all your debt on several unsecured (credit card) accounts, you get one big loan of up to $10,000 and pay them all off. Then, you only have one payment to remember each month and you are also guaranteed to pay the debt off over time – since you cannot make new charges on a personal loan.
Finding Lenders to Help You
If you know you have bad credit because of the problems that I outline above, there are lenders out there who specialize in helping people like you consolidate their debt and improve bad credit through personal loans. These lenders are called non-traditional or private lenders and often they operate online, rather than at a traditional bank or credit union.
One way to find these lenders is through a basic internet search. You simply need to look for “bad credit personal loans” on a Google or Yahoo search and you will be given dozens of choices to look through at your leisure.
The Application Process
Though you have bad credit, personal loans in your situation are given in much the same way as in any other situation. Therefore, there will be an application process which looks at a number of factors, including credit, in order to establish your creditworthiness and extend you an offer on a loan. Generally, these lenders will also be highly concerned with your income and job history. The more money you make and the longer you have held your job, the better a candidate you become. Also, they will look into any secured lending options available – that is, using your home, land, or vehicle as collateral against your new loan. If you can find a secured lending option, you are far likely to get a favorable interest rate and higher principle amount.
There Is Hope for You
As you can see, finding the lending answers you seek is not as hard as you initially thought. You can borrow up to $10,000 through a personal loan, even if you have bad credit. The key is just knowing where to look.