If you are one of the millions of people today that have less than perfect credit, you may feel that you have no option when it comes to borrowing money. You may think that there are no personal loans for bad credit and the only option that you have is to max out your credit cards. This is certainly not the case with many highly reputable lenders now providing safe, secure and reasonable short term loans.
There are several options that you may want to consider before deciding to apply through a company that offers personal loans for bad credit. Each of these options may be something that would work for you, but they also may have their downside or possible issues.
Borrowing from Friends or Family
Friends and family can be a good resource for support, but when it comes to borrowing from friends and family it is often a very risky option. This is because if you miss a payment it can be seen as a slight on the friendship or the relationship. Often this type of issue results in very bad feelings or possibility even legal action through small claims court if the delay of repayment is significant.
Using Credit Cards
Adding emergency expenses on credit cards can be extremely costly. This is because you will continue to pay interest, month after month, at a very high rate. Some credit card interest rates are well in excess of what the fees are for personal loans for bad credit. In addition you repay over months, meaning the interest continues on with the entire balance.
Going to the Bank
While there are some banks that are now offering lower value, short term types of loans this is not a common practice. Even with these types of loans through the bank you will typically be required to provide collateral and go through the full loan application process. This may be based on your credit score even for a small loan amount.
Instead of the above, consider going to a lender that works with personal loans for bad credit and requires no collateral or credit check. Your application can be completed online and you will know within 24 hours or less if you are approved. For more information on personal loans for bad credit be sure to visit our website.
