Posts tagged: bad credit loans

Utilizing Secured Loans With Poor Credit

If you have poor credit and are looking for a secured loan, you have your work cut out for you. There are many types of loans out there as you know. For example, mortgage loans to purchase a house, car loans to purchase a car, equity credit lines, home improvement loans and so forth. However, if you have poor credit, be prepared to explain why, especially if you are now in need of credit.

The main downside of secured loans is that you have to put up an asset to share the risk with the investor or lender giving you the loan. Chances are with poor credit, your rate will be higher, you may have to pay fees to get the loan, you will have to put a little more down and your repayment term may be shorter.

It could be that it is not entirely your fault. Maybe you lost your job, had a medical emergency where your insurance did cover all the medical expenses and you couldn’t pay them either, or a divorce situation where you got stuck with the poor credit. Nonetheless poor credit will be with you for around 7-10 years, the time frame it will remain on your credit report. If you have fulfilled this timeframe, you can request to have it  removed by the credit reporting companies. Usually, a lender will use three credit companies so you will have to request the removal from all three. Sometimes, bad debt is sold and the process starts all over again, so you are in for some work. There are some companies that charge a fee to assist you in repairing credit, but do your homework, as some have been reported as scams.

So the word to the wise from the folks at www.125securedloans.com, if you need a loan to purchase something that is needed and not wanted, and you have poor credit but you are looking at secured loans, chances are you will get one at a much higher cost but you will get the money. And remember, if you pay on time, you are also repairing your credit as well.

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categories Private Student Loans | , 27 Mar 10 | comments Comments (0)

Are You Considering Instant Cash Or Logbook Loans?

If you’re staring at a stack of bills and the balance in your checking account and figuring out that it’s just not adding up, then you’re not alone. On top of that the car just died and the mechanics of the repair bill is more than you actually have in your checking account and you have even paid that stack of bills yet. What are you supposed to do?

Well the first thing that you might consider doing is taking out a bad credit instant cash loan. They seem appealing because you need your car to get to work and since it’s broken down it makes sense that fixing it would solve your problem. You also reason to yourself that you’re going to pay for it out of the next paycheck anyway so this just get you the money from your next paycheck a little sooner. However, you’re not thinking about the cost of the payday loan that will also be deducted from your paycheck. The interest rate and charges and extra fees that are tacked onto payday loans are so high that the amount of money you will end up paying back can actually be nearly double what you borrowed. This can put you in a situation where the minute you pay back your payday loan you need to take out another one is to buy groceries until your next payday, and so forth and so on. It’s a short road to complete disaster.

The next thing you might check into are quick logbook loans. These are essentially the same thing as a payday loan except you get a much longer time period to repay them and you have to put your car up as collateral. Although the upfront interest rate is a little over the onto payday loan, they search the payments out over approximately year and a half so you end up paying almost 4 times the amount that you borrowed, and if it anytime you get behind on your payments they repossess your car leaving you with no means of transportation.

A better solution to either of these instant cash loan products is to simply do without. It’s incredible how much cash you can do without when you have to. If you don’t have it, don’t spend it. It may feel painful at first, but it’s actually the road to financial freedom from debt cash emergencies and other financial disasters that are causing is a pain that you are having right now.

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categories Other Loans | , 18 Mar 10 | comments Comments (0)