Risky Personal Loans For People With Poor Credit

Nowadays it is possible to get a personal loan if you have poor credit, or no credit. The most important things you must have when you are considering getting a personal loan are a steady full-time job, and an active checking account. Many lenders also ask that you be signed up for direct deposit as well.

If you have no credit at all, some creditors are willing to work with you at reasonable rates for small loan amounts. But, this is only if you have an absolutely clean slate. Usually these opportunities present themselves around the age of 18.

Personal loans for people with poor credit, that do not require a credit check, tend to be shorter term loans and collateral loans. The short term loans are often called payday loans. The reason for this name is that you are expected to pay this loan back on your next agreed upon payday. That payday is usually only 2 weeks to a month away. Most payday loans will not allow you to pay your loan back after that time without extreme penalty.

Collateral loans are a bit different. They also don’t require a credit check at all. The reason the creditor is extending the loan to you is because you are putting up collateral. Your collateral can be anything of value. Many people offer up their car titles as collateral. This is a popular personal loan to have called a title loan. Still others use an old standby. The pawn shop will always offer personal loans on items such as gold, sometimes silver, platinum, diamonds, high end electronics and cars.

Interest rates can be exceptionally high for people with payday loans and even with collateral loans. You must keep in mind that when it comes to a collateral loan, your creditor thinks he will have ownership of your property in the end. He doesn’t believe you’ll be back, so he’ll want to discourage you. Because of this, personal loans can be risky for someone with bad credit. If you can’t repay them, you risk losing something of value or losing a lot of money and further ruining your credit rating.

These are the main ways you can get a loan with a poor credit score, no credit score and without a credit check. It is possible to get the money you need if you have a bad credit score or if you have no credit history. Many creditors want to give you a chance. They are people just like you, and they know that everybody needs a little help sometimes.