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Smart Tips When Acquiring A Bad Credit Personal Loan - Unsecured Loans Now Articles Unsecured Loans Now Articles

Smart Tips When Acquiring A Bad Credit Personal Loan

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Posted on 27th January 2012 by Sandra Thompson in unsecured loan |unsecured loans |Unsecured Personal Loans

Many consumers apply for personal loans for different reasons.  Some people need immediate cash to pay a past due debt, pay college tuition, repair damages in the home, buy medicine, or cover for other emergency expenses.  Whatever your reason is for acquiring a loan, your personal credit score will surely be a big factor.

Many lenders reserve their best deals to customers with good to excellent credit.  If you have a high score, you can easily get approved and qualify for a lower interest rate.  On the other hand, there are lenders that offer loans to people with bad credit but with steep interest rates and fees.  If you plan to apply for a bad credit personal loan, consider these smart tips:

Offer security.  Secured loans for bad credit have better rates than unsecured bad credit loans.  By pledging collateral, your lender can be assured that a resource is readily available in the event of default. In addition, a lender will be more confident to give you a lower rate if repayment is guaranteed.

Know your rights.  Despite having an unimpressive credit history or a poor credit score, you deserve fair treatment from any lender.  Thus, you should not settle for an unfair loan deal just because of you are credit challenged.  If you feel that a lender is trying to take advantage of you, you should not hesitate to look for other lending companies in the market.

Get a co-signer. If you can find someone with good credit history who will be willing to guarantee repayment of your loan, then having a co-signer is a smart way to get your bad credit loan approved and enjoy a lower interest rate.  Take note that co-signing a loan is a serious responsibility and your co-signer should be well aware of the consequences if you fail to keep up with your loan payments.

Compare bad credit loans. Just as it is important to compare prices when shopping for things you need, it is also important to spend time comparing bad credit loan offers.  Different lenders have different repayment terms and the only way you can be sure that you found a good deal is by doing comparison.

Look out for signs of loan scams.  After checking out your options, narrow down your choices to two or three potential lenders.  Avoid being a victim of loan scams by checking the company’s background and reading the fine print.  If the contract contains missing lines or blank spaces, don’t sign up the document since words or clauses can be easily inserted in the blank spaces after you have placed your signature.

Plan your repayment.  Once you have found a legitimate bad credit personal loan lender, borrow only a reasonable amount and make sure that you can afford to submit the monthly loan payments.  It’s important to consider your repayment obligations before signing up for a loan deal to avoid problems later on.  Since loans for bad credit are more expensive than standard loans, borrowers should be a lot  more cautious when considering this option.

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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