Guaranteed No Fee High Risk Personal Loan
It’s no fun to have bad credit. Sometimes it feels as though no matter what you do, things just get worse. Good people have bad credit. It can happen with a job loss, a medical emergency, or a car accident. It can also happen when good people lose control of their finances.
So what happens when good people with bad credit have an emergency need for money? Maybe a parent is ill, maybe the car needs repair, or maybe they need to see a doctor and don’t have any insurance or money. Whatever the need, whatever the emergency, good people with bad credit have limited options.
What they need is a personal or unsecured loan. One option that many people turn to is “payday loans.” Payday loans are often a double-edged sword. These loans are short term, small amount, high-interest loans. Usually, they are limited to amounts under $500. The borrower writes a post-dated check for the next pay date in the amount of the principal and interest. The interest rate is extraordinary ranging from annual percentage rate of 300% to 1500%.
The major drawback with payday loans, however, is their incredibly short term. Borrowers, who are already stretched thin, have difficulty repaying the loan in a two-week period. This leads to rolling over the loan, which in turn leads to more fees. Too often it becomes a vicious cycle. Fortunately, as word of these predatory lending practices has filtered into the media, other institutions have stepped up to offer short-term personal loans.
Credit unions were the first to rush in and offer short-term loans to their members. Other institutions, such as banks and savings and loans are beginning to offer these loans to their banking clients. There are several advantages to getting a loan from a credit union, bank or savings and loan. First, the interest rates they charge are far less than those offered by payday loan companies. Second, these institutions extend the repayment period from two weeks to usually around 90 days—making it far easier for the borrower to repay the loan without having to take out another loan. Finally, credit unions, banks and savings and loans limit the number of short-term loans their clients can get in a year.
Even in emergency situations, individuals with bad credit do have options. Payday loans are one of them and sometimes they are necessary. But borrowers should look first to credit unions, banks, and savings and loans, to see if they qualify for a short-term loan with lower interest rates and a longer term of repayment.
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