The short answer is yes. A less than favourable credit history does not necessarily mean that you cannot get a loan. Modern life is impossible to imagine without loans. Without their help it is difficult to make major purchases, they are necessary for business development and in case of personal emergencies. Unfortunately, there are situations where you may have a problem to repay the debt on time, and this creates a history of bad credit.
With the on-line availability of these types of financing options you can avoid the hustle and bustle of going to different lenders when comparing personal loans. It's pretty easy using the Internet, you can safely apply online to literally 100's of lender websites. The interest rate provided by personal loan lenders can vary depending on the type of bad credit personal loan you choose.
Secured Personal Loans For People With Bad Credit
Secured bad credit personal loans are probably the best choice because they can be taken over an amount (depending on your collateral) and their approval is usually pretty fast. Two choices for personal loans for bad credit are: one offers you fixed interest rates and the other, variable rate. Secured bad credit personal loans are usually easier to obtain than unsecured, if you have bad credit. The market for secured personal loans is getting bigger every day. The rates of interest on guaranteed loans are getting lower and lower due to the increase in the number of lenders and if you shop around you will find some incredible deals.
Unsecured Personal Loans
The unsecured form of bad credit personal loans usually come with a much higher interest rate (APR) than what you can get with secured bad credit loan. The best part of a bad credit unsecured personal loans is that you do not need to set up collateral (your home or car etc...) and risk to be repossessed if something happens and you default on the loan. The better your credit rating is, the better (lower) the interest you get on the loan. But despite a more favorable interest rate, the cost is consistently higher when compared to a loan backed by collateral. This is also the case for unemployed short term loans. People in this group unfortunately will pay a higher interest rate as well.
Checking Your Own Credit Score
Make sure that you have checked your data with a credit refernce agency for errors before making an application for bad credit personal loans. Also, you should take price quotes from sevaral lenders if you want to lower your costs. Some lenders do charge less than others. One of the many places you can do this is at Expirian.
People who have overdue payments or defaults on paper in their credit history or even if you have a CCJ are qualified for this loan. Many lenders support personal loans for people with bad credit usually to earn a high interest. So, if you are ok with forking out interest at a high price, these loans will work for you. One thing to keep in mind though is that even if the lender may not directly ask for collateral, they will still asses you on your ability to repay the debt. Checking your own credit score can help you find out that your credit rating may not be as bad as you thought.