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Bad credit can be devastating, especially if you are in need of a bad credit loan. In today’s faltering economy, many people suffer from poor credit after job losses, layoffs, and reduced hours given to them by employers trying to cut costs. Or maybe you became sick or injured, and found yourself without a job due to frequent absenteeism.
Whatever is causing your bad credit standing, you undoubtedly, like us, may need a loan from time to time. There are two better options for those with bad credit – secured personal loan or bad credit secured personal loan.
Secured personal loan
Secured personal loans are short-term loans that allow you to borrow up to $10,000 and pay off the lender in monthly payments. Most secured personal loans are written for terms ranging from 12 months to five years, depending on the amount you’re borrowing and other circumstances. In order to be the recipient of a secured personal loan, you will need to pledge collateral to your lender.
Collateral can be in the form of your home, late model car, or other property worth more than the amount you wish to borrow. The interest on secured personal loans will accrue on the principal amount that you borrow necessitating that you only borrow the amount of money that you really need to avoid paying additional interest costs.
Secured bad credit loan
Another option that is very popular among those with troubled credit scores is the secured bad credit loan. A secured weak credit loan is the easiest loan in the market to get. Almost everyone can qualify for a weak credit loan regardless of past credit history, with 99.99% of all applicants being approved in most circumstances. It may also be known as a payday loan, cash advance loan, or simply cash advance.
To receive it, you will write a post-dated check for the amount you wish to borrow. The lender will hold the check until a specified period of time has elapsed, which usually coincides with the next specified date for payment. When that date comes, you simply return to the payday lender to retrieve your check and pay the money you owe, or do nothing and the lender will credit the check to your account for payment.
There is no credit check required to get a payday loan, the only requirements to get the money you need is to have an active checking account and a job.
Payday loans are usually written for no more than $1,000, but the lender will determine how much you’re entitled to borrow based on your paycheck back, or the amount pooled for you and your spouse (if you have a joint checking account). Payday loans are slightly higher than other loans in terms of the interest you will pay, but they can really help borrowers with bad credit who find themselves in dire financial straits.
