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I Need A Personal Loan Not A Payday Loan To Consolidate My Credit Card Debt But I Have Bad Credit

By Edited Apr 27, 2016 0 0

Bad Credit Personal Loans To Help You Pay Your Credit Card Debt

Getting a personal loan to consolidate your credit card bills when you have bad credit may be difficult, but certainly not impossible.  There are lenders who will service the bad credit personal loan market, money that you can use to consolidate your credit card bills.  These lenders realize that there may be greater risk involved when lending to someone with less than perfect credit but they usually hedge their risks by asking for automatic withdrawal from your bank account or paycheck and the interest rate is usually higher than a personal  loan for prime borrowers. 

 

Why Do I Have To Pay Higher Interest Just Because My Credit is Not Prime Credit?

Those lenders who lend personal loans to high risk borrowers have to ensure that they will get their money back somehow.  Let's face it, you have a history of bad credit because you have a history of non-payment or slow payment of bills that were placed on your credit report.  The lenders are not really concerned that you have this because you lost your job and could not pay or that you got out of a messy divorce that destroyed you financially. All they know is that you have a history of non-payment of debt. 

Many of the high risk lenders who will lend you a personal loan with bad credit to consolidate your credit card bills will do so but only with certain stipulation. Each company has different stipulations but non-the-less, you will have to comply with them in order to get the money you need to consolidate your debt. The good thing about it is that sometimes the interest rate isn't too high and paying off your debt can actually help improve your credit.  Just like those who use buy now pay later catalogs to improve their credit profile, you can use personal loans to do the same thing.

Nearly 20 percent of the American population have bad credit or a credit score under 600.  That is a very large amount of people to ignore and exclude out of the lending process.  So instead of excluding you from the lending process, they just design certain stipulations that will help hedge them against loss in case you decide to skip out on your debt.

A word of caution though.  Many creditors and personal loan lenders are starting to sue for debt, thus if you don't have a job or a way to pay your loan back, it is better to find another option to consolidate your credit card debt.

 

What Are Other Options Other Than Taking Out A Personal Loan To Consolidate Credit Card Debt?

There are other ways to pay off your credit card debt without taking out a personal loan.  Although a personal loan is the fastest way, it may not necessarily be the best way depending on the person and the circumstances.  Only you can decide whether a personal loan is better for you or whether your credit card debt can be paid down using another option. Some other options include:

 

Debt Consolidation Company

Reputable debt consolidation companies like CareOne can help you contact all your creditors, consolidate your debt and lower your interest rates.  The reason I say reputable debt consolidations companies is that not all debt consolidation companies are the same.  CareOne has an established reputation for help people pay their bills and thus cleaning up their credit. 

 

Friends and Family

If you fully intend on paying your friends and family back, they may actually be the best source of stress-free emergency cash to help consolidate your credit card bills.  However, you HAVE to  make sure that you are willing and able to pay them back.  Not paying them back can cause irreparable damage to their trust and your relationship.

 

Home Equity Line Of Credit

If you have a home, banks like HSBC are a good place to try and get a home equity line of credit.  Their credit requirement are usually more relaxed, especially since there is collateral.  HSBC has branches throughout American.  You can also try to get a home equity line of credit from a local bank or your local credit union.

Title Car Loan

For small credit card bills, you can try to get a title loan to get money you need to pay off your credit card debt or at least consolidate them into one big bill.  You have to own the title of the car in order to get a loan against it. 

Accumulation or Snowball Method

The snowball method is a good way to pay off your bills.  It may take longer, but you don't have to take out a personal loan or go through a bill consolidation company.  Call all of your creditors and try to get your interest rates lowered.  At the same time, see if they can lower your monthly payments.  If they can't lower the monthly payment, that's not a problem.  The snowball method works by paying off your highest debt first while paying just the minimum on the other bills.  Try to add some more money to your highest debt to pay it off faster.  Thus, if your highest credit card debt is $100 per month, then pay $120 or more to pay it down faster, while just paying the minimum on all of your other credit card debt.  When that bill is paid off (it may take months-that's ok), use the $120 or more you were using to pay that credit card debt and roll it over to the next hight credit card debt.  So if you are paying $50 on your next credit card debt, you will still pay that $50 plus the extra $120 or more you were paying on your highest debt.  The second debt will be paid off faster.  Then roll over that $170 plus to the third highest debt and so forth.  The only extra money you will pay is anything that you add to your original highest debt. Continue this until all your credit cards are paid off. 

 

What Company Will Give Me A High Risk Personal Loan With Guaranteed Approval That Is NOT A Payday Loan?

 

Credit Sources

CreditSources.org approves bad credit personal loans to people who need it when they need it.  They claim they approve personal loans up to $1,500


Western Sky Financial

If you have seen the commercials on television, you know that Western Sky offers high risk personal loans for up to $5, 000.  They tell you up from that it is not a payday loan but the money is expensive (and it is!).  However, if you need a high risk personal loan fast, Western Sky Financial may be a good option.

You can read more about Western Sky Financial: PRESS HERE and for the review of Western Sky Financial: PRESS HERE

 

Spring Leaf Financial

Springleaf Financial  has branches all over the United States.  They say they lend up to $25, 000 in unsecured personal loans even to those who have bad credit.  They also claim that their application process if quick and simple so it doesn't take long. These loans can be good for consolidating your credit card debt or even if you just need money for car repairs, groceries and rent,  or even personal cash to plan your wedding or a funeral.

You can read more about Springleaf Financial Lending: PRESS HERE

Books To Help You Get Loans Even If You Have Bad Credit

You can get these books on obtaining a personal, auto, business loan even with bad credit from Amazon. Many of them available immediately on Kindle.

How To Buy a Car: When You Have Bad Credit or No Credit At All
How to Get a Business Loan With Bad Credit
Get Credit Help For Bad Credit Repair Plus Tips on How To Get Loans With Bad Credit So You Can Rebuild
Home Loans For People With Bad Credit
NO CREDIT CHECK LOANS: And other Options for People with Bad Credit
Quick Payday Loans - How-To Series (Part 4) - "Payday Loans: Why They Are Bad and How-To Make The Best of Them!"

 

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