Bad Credit Personal Loans
Bad credit personal loans can be difficult to source for many people. If your credit report shows a history of defaults, missed payments or other negative listings, most lenders will make it difficult for you to qualify for any kind of credit at all.
Bad Credit Personal Loans ComparisonRates last updated August 23rd, 2014.
In fact, you may find that the only option available to you is to ask a friend or family member to co-sign your personal loan application. Effectively, they're signing as a guarantor for you.
While this might sound like a convenient way for you to get the money you want, it can be extremely risky for the person co-signing your application. If you can no longer afford your repayments, the person who went guarantor for you becomes liable to keep up with your repayments for you. This can put a lot of strain on relationships and friendships.
Qualifying for Bad Credit Personal Loans on Your Own
Despite most personal loan finance brokers wanting to tell you that there's no other way to qualify for bad credit personal loans unless you have a guarantor, there are options available to you.
The main reason banks won't consider you as a good candidate to borrow money is because you already show a history of missing payments or defaulting on other debts you may have had.
In order to change their minds about your credit-worthiness, you will need to take some responsibility for getting your finances back on the right track.
Most personal loan assessors may decide to reconsider rejecting your application if you can provide them with a strong enough reason to approve you. This means spending a little bit of time building up a savings pattern in a dedicated savings account. It also means catching up any late payments on other debts you have outstanding. It may also mean finding a secure job and hanging onto it so you can show a regular pattern of income.
Keep your statements and your payslips every time you receive them. Your bank will want to know why your history was so bad but they will also be interested in the steps you've taken to get yourself back on the right track again.
If you can show that you've worked hard to change your spending patterns and your savings habits, you might just find that being approved for bad credit personal loans on your own could happen.
Another alternative would be to consider payday loan options otherwise known as short term loans which offer short term credit options. Be aware thought that the interest rates on these loans are quite high.