Guaranteed Personal Loan Offers
A lot of people automatically assume that they cannot get a loan if they have bad credit. This is no longer the case. There are numerous lenders that have carved a great niche by issuing guaranteed personal loans to people who have bad credit. Although you will be forced to pay a higher interest rate than people who have perfect or even good credit, you are still able to borrow money via guaranteed personal loans.
Instant Approval Personal Loans Comparison
Borrow up to $1000
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- Loan Amount: $1000
- Loan Term: 16-31
- Turnaround Time: Same Day
- Total Cost of Borrowing $100: 24% of loan principle
- Bad credit Ok
- No security needed
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Secured Personal Loans
Basically, there are two types of loans which are secured and unsecured loans. With a secured personal loan, in order to qualify for the loan, you must be willing to put up some type of collateral in case you default on the loan. Mortgages are an example of this type of loan. When a person obtains a mortgage, they are basically putting up the home as an asset just in case they default on their loan. If they default, the bank is able to seize the home and use it in order to get what is owed. Generally, secured personal loans have a much lower interest rate and are easier to get since collateral is provided.
However, these loans are a terrible option for anyone with bad credit. These are guaranteed personal loans that are backed by collateral. Usually only people with excellent credit are willing to put up their homes with the hopes of getting a much lower interest rate than with an unsecured loan. However, it would probably be a very risky and foolish move on your part to do the same thing.
Unsecured Personal Loan
A secured personal loan is the best bet for someone that has bad credit. Collateral is not needed. In order to get a decent interest rate, you must have good credit which is why you will only be able to obtain unsecured personal loans that have a much higher interest rate.
If you have really bad credit, your only option will probably be a payday loan. Basically, payday loans and guaranteed personal loans are considered to be one and the same. There is no credit check and you are guaranteed to have the money in your account within 24 hours.
All in all, people with bad credit can get personal loans but with a much higher interest rate. There are two types of loans but people with bad credit are limited to unsecured personal loans which are usually synonymous with guaranteed personal loans in the form of payday loans.