Bad credit unsecured personal loans are a way to get some extra money to make ends meet financially. In a time with very low interest rates now might be as good of a time as ever to pursue the possibility of an unsecured personal loan. If this recession has put you in a bad position when it comes to your finances you will find that there are many companies out there that are willing to loan you money.The money you borrow through a bad credit unsecured personal loan is not going to come without a price. The interest rate that you get on your personal loan will be the cost of this service. Unfortunately, bad credit borrowers are going to find that the interest rate on their personal loans are much higher than the interest rates on personal loans of borrowers who have been smart with their money.
The difference in an interest rate can be as much as 10% or 15% when it comes to prime borrowers and subprime borrowers. If you have a credit score of 650 or below you are going to be considered a bad credit borrower. Somewhere in your past you made bad decisions with your money and you are now going to get punished for those decisions. This does not mean that you can be forgiven of those decisions though.
If you work hard to pay off your date and make sure that you pay all your bills on time and in full you will see your credit score increase. If you have tons of debt and your bills are piling up and going unpaid then you are going to see your credit score decline each and every month that these bills are not being addressed. Trying to hide in a mountain of debt is impossible.
Luckily most borrowers are able to get bad credit unsecured personal loans even if they do have bad credit. Most financial minds will say you should never pay of debt with debt but if you can get a personal loan for a lower interest rate than your other debts then it might be smart to pay off some of your high interest debt with this money. Before making any of these decision make sure to do some in depth research on the topic.
source:http://www.subprimeblogger.com/2009/10/23/bad-credit-unsecured-personal-loans-interest-rates-low/
2 comments:
Getting a loan for urgent cash needs is not bad. It's just that you'll have to really know the important of the loan proceeds. And remember; A payday loan or personal loan is typically a more expensive type of credit because it is for a short-term and there is a higher risk of default. It is not meant to be a solution to long-term money problems, but rather a quick fix for a particular situation. Payday loans are most effectively used by paying them back in full by the specified due date.
you don't need brand new leather furniture with a built-in refrigerator, and you don't need a giant TV. The cheap stuff works just as good. If you have the money to get the big stuff, by all means do it, but don't borrow that money from your credit card company if you don't have it. You'll enter the debt spiral if you do 3 credit scores
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