With the economy in it's current state, more and more people are realizing; I need a personal loan quick, but I have bad credit. If this sounds like the predicament you're in, then you should know that you have some options out there. No matter how poor your score, you can get a check fast, which may come in very handy in times of crisis. With the banking industry on it's heels, you should know you have some options when you say to yourself â€“ I need a personal loan quick but I have bad credit.
Where to look:
When your FICO score just isn't up to par, you will most likely need to forget about using the more traditional banks down the road. Instead, you'll need to focus on other avenues, like the online banking industry. If I needed a personal loan quick, but I had bad credit, I'd do most of my looking from my computer. There are many online high risk lenders available for those with a poor score. Of course, there are plenty of other places to look as well when you need a personal loan quick, but have bad credit.
For fast, short term money needs you may want to consider a payday advance lender. This is really most effective for very short term needs, when you know things will be better in less than two weeks. If you find that this type of arrangement will work for your needs, you should know that there are many online payday lenders. Those that prefer to visit a live person will likely have a lender close to their neighborhood. If I needed a personal loan quick, but I had bad credit, I would consider one of these lenders if I knew I would have no problem paying the amount back quickly.
If you have built a relationship with your current bank, and have kept all of your accounts in good standing, they may be willing to overlook your poor score if you only need a fairly small amount of money. Generally speaking, you should only use this method if you've used a particular bank for many years and have kept all accounts current at all times. Still, if you fit into this mold, you may be able to get a personal loan quick even with bad credit.
What to watch for:
High risk lenders charge a much higher interest rate when you have a poor FICO score, so simply go into the process expecting it. Still, you should make sure you compare interest rates so you get the best deal. Some interest rates will be bordering on obscene and illegal, so try to keep your options open.
If you know you need a personal loan quick, but have bad credit you will want to make sure you use a reputable lender. Be sure to verify that the lender isn't going to take you for a ride. You can check the Better Business Bureau to see if there are many complaints about the lender. In addition, you should simply do an internet search to see what you can find out about them.
What type of collateral are you required to put up? If you need a personal loan quick, but have bad credit you will need to read what you stand to lose if you don't fulfill your obligation to the lender. Car title loans, while appealing to some, can have steep consequences if you fall behind on your payments. Still, for some the shear speed of the transaction and lack of need for a FICO score check is appealing. Exercise caution.
Be very careful when you apply for a personal loan quick with bad credit, it may hurt your score even more. When you apply to borrow money it shows up on your report. You can have a negative impact on your score by applying and being turned down. This will only make it even more difficult to borrow money when you need it.
Increasing the odds:
Having someone cosign for you will greatly improve the chances of an approval. So, if you know you need a personal loan quick, but have bad credit, I would suggest asking a loved one with a good score to cosign for you. Use caution, if you don't pay off your loan, the lender can go after the cosigner, ruining their score in the process.
Collateral will improve your chances of getting approved. Use caution, as noted above, but realize that something you have of value that can be used as collateral will only help your cause. If you own a vehicle, atv, or even property without any liens, you could use them as collateral. If you need a personal loan quick, but have bad credit, this could be just the thing to get an approval.
Put money down, if possible. I know this may sound funny, but it will increase the odds. For example, if you are looking to purchase a car, and can put up some form of down payment, the bank is more likely to borrow you the money.
A few alternatives:
Do you have anything you can sell of value? If you have some big "toys" you may be able to get by without the loan. You may be saying â€“ I need a personal loan quick, but I have bad credit, but have you thought about the alternatives? You can sell many large ticket items with online auctions and have your money in a matter days. Raising some quick cash may not be as difficult as you think.
Have you considered going through your attic for antiques? You hear the stories all the time about people having an old junky lamp that turned out to be worth thousands of dollars. It's worth a shot.
Would a family member or close friend borrow you some money? This is a slippery slope indeed, but it may be a viable option for you, depending on your situation. Keep in mind that relationships can be ruined with these types of arrangements, so make sure you are in a position to pay the money back. Simply tell them, I need a personal loan quick, but I have bad credit!