So you in need some cash fast for an emergency but have been turned down for a personal loan from your bank or credit union because your credit scores were too low. And it feels like a solid brick wall is stopping you moving forward. What do you do now? Well the first thing is not to panic and rush into making a decision that you will regret later. There are many other option available to you one of which is to approach the many institutions that offer personal loans to people with bad credit, most even offering online application processes with guarantees to deposit funds into your bank account within 24 hours of approval. The following information will help you decide if this is the best option for you.
How do you go about finding a legitimate lender.
If you do have a not so good credit rating / history then finding some one to lend you the cash that you need can seem like swimming in custard. Bankruptcy, foreclosures, late payments, missed payments etc. all negatively impact your credit score, making you less than desirable for the main banks to do business with. However there are many institutions that are willing to help and the internet is full of advertisements for these companies, the problem is not getting bogged down trying to decide which are legitimate and those that are not. The following should help you decide which are legitimate companies offering loans to people with bad credit, such as you.
Having said that you are unlikely to get a loan from a main bank, it is always worth checking with you own bank / credit union first as they may still be able to help. There are some banks that do offer loans to people with bad credit, do some research first, visit the banks website and look to see if they do this before approaching them. The reason for this is that each time a bank makes an enquiry into your credit rating it can have a negative effect as will being turned down for the loan. Visit several banks as each will have different criteria for lending and will have different charges.
On the internet there are many companies that offer 24 hour approval processes and over night bank deposits. Many of these are legitimate companies but unfortunately there are some that are out to either make a quick buck at your expense or are scams. Before doing any business with an online lender, check with the FTC, and better business bureau, or in the UK the FSA and trading standards. These bodies will be able to give you the good the bad and the ugly on any company you are thinking of doing business with. Also there are many websites where consumers can leave reviews about companies and it is always worth checking on these as well.
Before you enter into any agreement make sure you fully understand the terms of repayment, all legitimate companies will provide this information up front before you sign the agreement, avoid any that do not do this as they have something to hide. If you are unclear about something ask for clarification, again legitimate companies will be able to answer your questions without trouble and with out pressurising you to sign first.
We have all heard about identity theft and the problems that it causing the victims, given the situation you are in this is the last thing that you need to happen. So remember that if you are going to apply for a loan over the internet, that you will be sending a lot of sensitive personal information out, which if the wrong eyes where to see it could lead to identity theft. So always use a company that has a secure website, where any information is encrypted before it is sent over the internet.
Also if you are going to do business with an internet company, check out there actual physical business address and telephone number before you go ahead with the deal. Again legitimate companies will make it easy for you to do this.
Before you apply for a loan make sure you know how much you need and do not borrow more than this as doing so will lead to greater charges and fees. You also need to be aware that even though these companies may advertise that you can borrow thousands, in reality the figure will be a lot lower than this for first time customers.
And the best bit of advice, for those wanting to have loans for people with bad credit, before you act sleep on it and review everything the next day.