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Bad Credit Personal Loan Tips for People with Low Score - Unsecured Loans Now Articles Unsecured Loans Now Articles

Bad Credit Personal Loan Tips for People with Low Score

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Posted on 16th January 2012 by Sandra Thompson in unsecured loan |unsecured loans |Unsecured Personal Loans

For people who need bad credit personal loans, finding a good deal can be difficult considering their poor score.  It is no secret that lenders offer interest rates based upon the borrower’s credit rating.  A higher score will surely win you lower interest rate while a low score would mean a steeper rate.

Nevertheless, borrowers should never settle with an unfair deal just because their credit score needs improvement.  By doing your research and carefully evaluating your options, you will be able to find a bad credit personal loan lender that offers a good deal.

Take a look at the following tips on how to find a good bad credit loan deal:

Check your credit score.  Check your latest credit report and credit score before negotiating with a prospective bad credit loan lender.  If you have not yet received your free report this year, you can request for a free copy of your credit report from www.annualcreditreport.com.  You can order all your three reports from the three major credit bureaus – Experian, Equifax, TransUnion at once, or you can order one copy from each bureau throughout the year.

Borrow only the amount you need. It can be tempting to borrow more than what you need but it’s important to remember that bad credit loans may carry higher interest rates than regular loans.  If you need immediate cash, a bad credit loan can be a viable solution. However, you must make sure that the fund will be spent wisely because of its high cost.

Plan repayment.  Before signing up for a bad credit loan, it’s important to carefully plan repayment.  Remember that if you fail to submit your monthly payments on time, you will incur high penalty fees which can make repayment a burden.

Compare bad credit loan deals.  Different lending companies offer varying loan rates. You can get loan quotes online for free simply by providing a few details such as the amount of loan you need, your preferred term of repayment, etc. Comparing loans and gathering loan quotes may involve more time but it’s the only way you can be sure that you have found a good deal.

Check the lender’s reputation.  Not all lending companies that offer bad credit loans in the market are legitimate and fair.  You may encounter predatory lenders that impose excessive interest rates and fees.  If you will not take the time to check the company’s reputation, you can be victimized by bad credit loan scams.  One way to be sure is to visit the Better Business Bureau’s website to see the lending company’s rating and track record.  If there were complaints or lawsuits filed against a company, you will be able to find out about it from the BBB.

Negotiate the terms of repayment.  The loan quote you will receive is merely an estimate of your monthly loan payments.  It’s important to ask the prospective lender for a lower interest rate or a more flexible repayment term.  Even if your credit score needs improvement, negotiating the repayment terms is still worth the try.

About the Author

Sandra Thompson is a loan consultant with http://www.unsecuredloansnow.com and has been providing consumers and business owners with Unsecured Loan since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Student Credit Cards and Unsecured Credit Cards. Copyright 2012.

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