[flag]

Personal Loans for People with No Credit

theking | Jul 3, 2009 | Views: 224 |

0 Comments | Rating: 0 You must be signed in to vote

E-mail

Personal loans for people with no credit can be had, if you know how to get them. The brutal truth is that with bad credit, getting credit or loans is a pain. Your credit history is your reputation and if you don’t have good credit, lenders won’t lend to you. But, lucky for you, there are a few things you can do to still get personal loans with no credit.

You first need to decide whether you want to get unsecured personal loans with no credit or secured personal loans with no credit. There is a pretty big difference between an unsecured loan and a secured loan. Secured loans will require you to put down some collateral like a house against the loan. If you fail to repay the loan, the lender will seize the asset used as collateral to recoup their losses.

The advantage of a secured personal loan is that you can qualify for one through a conventional lender like a bank with bad credit history. The disadvantage is obvious – you will lose your house if something happens to your finances so that you can’t repay your personal secured loan.

Unsecured personal loans with very bad credit are MUCH harder to get. These loans don’t require any sort of collateral to be put down. This means that lenders have to look much more closely at your credit history instead. As you may guess, this means getting personal unsecured loans with no credit will be much harder to get.

If you want a secured loan with no credit, then putting down valuable collateral will probably be all you need to get it. If you don’t have collateral, then getting this type of loan may be out of the question. Business loans for people with bad credit are often secured loans because of the risky nature of businesses. You may want to seek out home equity loans for people with bad credit as a secured personal loan. This type of loan is traditionally very safe -- if you have a house with equity and need a quick, lower risk personal loan.

One way to get an unsecured loan with no credit is to seek out one of the bad credit lenders you find online. These no credit lenders are willing to take the risk of lending to people with bad or no credit for very high interest rates. Now, as stated, the disadvantage with getting a poor credit loan is that you will pay higher interest over conventional loans.

Typically, depending on how bad your credit score is, you may bay between 2% to 10% more interest over a conventional loan. But, the advantage here is that you can get a needed personal loan with poor credit rating. You have to decide if you can afford this type of loan.

You can minimize the sting of the high interest somewhat by doing some comprehensive bad credit personal loan comparisons online. There are many bad credit lenders out there and by comparing a dozen or so of them you can find the best interest rates. Remember, not all bad credit personal loan interest rates will be the same from company to company. So it’s essential that you look at as many bad credit loan offers as possible to compare. After 6 or so comparisons, you will have a pretty good idea what the average bad credit loan interest rate.

Personal loans for people with no credit can be had, it’s just a matter of how much money you are willing to spend to get one. It’s important to note that if you have bad credit, you will never get the same deal as someone with good credit. You should make every effort possible to get better credit so you can get better loans. But if you need a fast personal loan with bad credit and you don’t have collateral for a bad credit secured personal loan, then getting an unsecured bad credit personal loan from an online poor credit lender is your best bet.

Bad credit sucks. But there are solutions -- check out these related bad credit guides: