How To Avoid Loans For People With Bad Credit - 3 Good Tips

Having a poor credit rating is no fun at all. Unfortunately, most of us manage to get into that situation by going a little wild with the credit cards and ultimately not being able to pay them off. Some people think that by getting a loan and paying off the balances, all will be well. This is wrong thinking. Here are three simple reasons why you should not take out a loan for people with bad credit - especially if you are one of those people...

First, you are likely to simply get deeper in the hole. While there are people who take out a consolidation loan and pay off all their outstanding debts and keep it that way, they are in the minority. Most of us pay off the credit cards, enjoy a brief season of a month or two of only having the loan payment to make, and then slowly give ourselves permission to start running those cards back up to their limits. Within a year or so, we not only have a mountain of credit card debt, but also a loan to pay off and no way to get any further financial assistance.

Second, if your credit is that bad, you are going to pay through the nose for a loan. You will be considered a high risk, and the interest rates and terms of the loan contract will reflect that. If you look closely, you may find that the rate of interest applied to the loan is higher than the interest rate on any of the credit cards you currently have in your possession. In short, you will end up paying out more money by taking out the loan and paying off the cards. You will come out ahead to cut up the cards and make payment arrangements with your creditors.

Third, taking out a loan when your credit is already in the toilet is only putting a band-aid on a gaping wound. Instead of trying to quickly fix your credit problem by taking out a loan, you need to address the habits that got you into the mess in the first place. Instead of looking for loans, find a credit counseling agency in your city and make an appointment. There you will find help in developing the kind of habits that will allow you to regain your good credit and become financially stable.


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Poor Credit Unsecured Loans - Instant Decision Loan For Those of You Who Are Struggling Financially!

There come's a point when you desperately to borrow money and all you can think about is trying to get an instant decision loan approved. Your debts are steadily increasing every day and you could really do with some financial assistance. You don't own a home, so you can't secure a loan against it or you have poor credit and don't want to risk losing your biggest asset. So you decide to opt for an unsecured loan, meaning that you don't need to provide any collateral to a lender.

However as i have mentioned you have poor credit so is there really any chance of getting a loan? How credit worthy is a potential borrower? That's the main question any lender will be asking themselves when assessing a loan application. Due to your past credit history you won't be viewed that favourably. However there are many financial institutions who would happily consider your situation.

The main obstacle you will face will be high interest rates. The quicker you need the money, the higher you can expect the specific terms to be. Any loans that require an instant decision will always be viewed as the highest risk. Once you do find a decent lender willing to lend to you and at a reasonable interest rate you can start the process of rebuilding your credit.

There should be great improvements in your credit score within 6 months to a year as long as you keep up with all your repayments. By this time your poor credit rating should have improved significantly to allow you to refinance your loan. This is when you should be able to secure a much better deal. Lower interest rates, lower monthly repayments!
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Young and Employed: Go for Loans for Young People

In any consumer product, young people form the majority of buyers. Therefore, to get a pie of such large market, these manufacturers manufacture products which are suitable for such large group of young people. At time, they include only those features which will attract such young people. The basic idea of all these products and features is to target the young people. These young people form such large portion of buyers because they spend the most; their average spending is much higher than older people. For example, a young people will think at least once to buy an expensive racing car but an older person may not think.

There is common psychology of this young buyers market is that they spend more than their earning. So, quite naturally, such young people are always in need. This need being an opportunity for lenders, they have devised loan schemes targeted at this huge market of young people, which is called loans for young people. The basic difference between a normal loan and a loan for young people is that the terms and conditions of loans for young people are easier and flexible compared to terms and conditions of normal loans.

Like any other loan, lenders offer two types of loans to young people-secured and unsecured. In case of secured loan for young people, the borrower has to offer an asset as security against the loan he borrows. This security is called collateral. Whereas, in case of unsecured loans, no collateral is required. It is given on the basis of borrower's profile. However, in case of young people, often such people start their career when they borrow money. At this juncture such young borrowers have usually no asset to offer as collateral. Therefore, in loan market for young people, unsecured loan forms the majority. Infact, young people have the highest level of unsecured debt in the UK, with the average person under 30 owing nearly £8,000, recent figures have revealed.

Purpose of Loan for Young People

Loan for young people can be used for any purpose depending upon the choice of the borrower. It can be used for buying a new bike or a racing car, to pay tuition fee, to buy a home, virtually anything. Some of the common purposes for which people opt for loans for young people are:

1 Debt Consolidation

2 New Car, Motorbike

3 Exotic Holiday

4 Cosmetic Surgery

5 Professional development courses

6 Establishing office at home

Eligibility, Amount and Cost of Loan for Young People

Anybody aged between 18years and 30 years are eligible to apply for loans for young people. At time, age limit does vary from lender to lender. The amount of loan also varies from borrower to borrower, in which different factors are examined. Such as age, educational qualification, full time employment, income level, consistency in employment etc. Similarly, rate of interest to be charged by the lender varies from borrower to borrower. However, since in most of the cases this loan is unsecured which increases risk for lender. So they charge a little higher interest rate to compensate against the increased risk. People aged between 18 and 29 owe about £7,718 each through credit cards, overdrafts and loans, the equivalent of 36% of their total household income, according to Alliance & Leicester.

Key features of loan for young people are:

1 Loan amount depends upon the profile of the borrower

2 Interest rate also depends upon the profile of the borrower and risk involved

3 Various factors which are considered before offering loan are:

-Age

-Full time employment

-Income level

-Consistency in employment

-Type of organization where working

-Any asset

-Any previous record of payment
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Instant Decision Unsecured Loan-Instant Money Without Hitch

If you are one amongst the salaried class of people, and a loan is inevitable for some urgency has cropped up, then surely you wish to have the loan amount instantly in your hands. For this purpose lenders have crafted instant decision unsecured loan, which is known by a more popular name of payday loan. All your smaller bills or other expenses can be instantly be met through instant decision unsecured loan. Instant decision unsecured loan is a short term loan availed for two to four weeks till the borrower gets next paycheque.

A lender is able to take instant decision for approving instant decision unsecured loan due to variety of factors. But foremost amongst them is that the loan is applied on an online application with the borrower filling basic information like loan amount and repayment duration. Instantly the application is with the lender just when you clicked the mouse. The processing takes hardly an hour and the instant decision unsecured loan amount is electronically transferred to the borrower's checking account within 24hours of applying.

Another reason for instant approval of instant decision unsecured loans is that it is unsecured loan, requiring no collateral and so time wasted in valuation is well saved. The lender takes no time in approval as only a smaller amount ranging from £100 to £1000 is usually involved in instant decision unsecured loan. Instant decision unsecured loans are mostly risk free business for the lender. The lender may take a post dated cheque of the lent amount plus fee from the borrower and if no rollover or extension of the loan is asked, then on cashing the cheque the lender gets back the loan safely on due date..

But there is very high interest rate come along with instant decision unsecured loan because the loan is of very short term. So make sure to pay off the loan in time when you get next paycheque. Basic requirements of the loan are you should be at least of 18 years of age, have a checking account and you must be earning a good steady salary per month. Bad credit people are approved instant decision unsecured loan without a hitch.

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Unsecured Loan For Tenant

Are you not able to locate a secured loan just because of your tenancy? No need to worry, as unsecured loan for tenant is here for you to get rid of your financial problems. Unsecured loan for tenant do not involve any collateral or security against its repayment.

You can take unsecured loan for tenant for a number of purposes like:

oConsolidation of debts

oHigher education payments

oHoliday enjoyment

oCar purchase etc...

The difference between any secured loan and an unsecured loan is collateral. Collateral plays an important part in any secured loan. The main contention area within any loan is its interest rate. There is a difference in the interest rate also, as secured loans have relatively lower interest rate than unsecured loans. This difference is due to the risk indulged in an unsecured loan. The loan amount to be borrowed depends on your previous credit score, and duration of the loan amount.
Council tenants, private tenant, housing association tenant, and those people who live with their parents can avail unsecured loan for tenant. As you don't have to pledge anything as collateral, this means that you are not at any risk of losing your property if you fail to repay installments in time.

Your previous bad credit history does not restrict you to go for unsecured loan for tenant. You can avail unsecured loan for tenant irrespective of the following conditions:

oCounty Court Judgements (CCJs)

oArrears

oIVAs

oBankruptcy

oDefaults in repayments

It is the fact that unsecured loans come with higher interest rate as compared to any secured loan. This is the same with unsecured loan for tenant, as interest rates are a bit higher in this loan too. The loan application process is very fast and simple and it requires minimal paper work.
Internet can be used to make your search for unsecured loan for tenant expedient. It will take no time to reach to a number of lenders while you search them online. Time demands that you have complete prior knowledge before you go for any unsecured loan for tenant. Knowledge about unsecured loan for tenant can facilitate you to choose the best option to suit your capabilities and requirements. It's not that difficult a task to apply any unsecured loan for tenant these days.


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Bad Credit Loans Instant Decision - Get Quick Access to Money

With a risky credit history, your efforts of finding out a loan may go in vain. Instead, you should first make some preparations like taking a good look at your repayment capability and other ways to win back the lenders faith in you. Only after such steps you can be successful in locating bad credit loans instant decision.

A lender will take instant decision only when finding that you are borrowing an amount that you can easily repay. For instant, if you borrow an amount against your next paycheque, such a loan is usually approved within hours and you get the loan amount in the same day. This is because the repayment to the lender is assured on the next payday. Similarly, if greater amount of say £25000 or lower amount is at stake, then the lenders will first check your credit report and see if you regularly keep a good amount of savings. Your employment record, residence address, annual income and other parameters will also be verified. So, keep these steps in mind.

Bad credit history of late payments, defaults, arrears and CCJs, can be countered if you have assured the lenders about your right intentions of repaying the loan. A way to instant approval of greater amount of loan is to make some down payment to the lender.

Repayment of bad credit loans instant decision will depend on the borrowed amount. A small amount against paycheque can be repaid on next payday and its approval will come instantly. Repayment schedule of greater amounts can be anywhere from one year to 10 years. You can use the loan for any personal purpose.


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Car Loan For People With Bad Credit

Many people are under the mistaken assumption that it is very difficult to get a car loan for people with bad credit. The reality of this is that there is nothing further from the truth. In today's world, there are many lenders who are willing to look beyond just the raw bad credit scores provided by the credit bureaus to find out exactly why a particular consumer has bad credit.

More often than not, the label of bad credit was applied to the consumer through no fault of his own directly. Perhaps the person was laid off from his job, had some very high unexpected medical expenses that were not covered by health insurance, went through a messy divorce, or a host of other reasons. None of these reasons give a lender cause to believe that the reason the bad credit label was applied was due to financial mismanagement.

But whether or not the label of having bad credit was due to the consumer's own fault or due to circumstances outside of his control, the credit bureau records still show that he has bad credit. That fact in itself is more than enough reason for many traditional lenders to deny a loan request. Many lenders such as traditional banks and credit unions do not allow themselves the time required to find out WHY a person has bad credit, they simply view it as bad credit, deny the loan request, and move on.

So what about the consumer looking for a car loan for people with bad credit? If you fall into that category, you are going to have to look in some non-traditional places for your car loan. Since no lender can totally overlook the fact that you have bad credit, you are likely going to end up paying a higher interest rate than a person with good credit, but getting a car loan approved is entirely possible.
source:ezinearticles.