Bad credit loans

Bad credit loans can be used to secure financing even if you have a questionable credit history. When you need access to financing, you may have to look in some unorthodox places to get the money you need. When you have made some poor financial decisions in life, your credit history can take a beating. At that point, you may have to consider bad credit loans when you need access to financing for big purchases. Depending on your situation, these loans may be found in several different places.

Payday Loans

One way to get access to bad credit loans is to work with a payday lender. These types of loans allow you to borrow against future earnings and they do not depend on your credit. As with all bad credit loans, these typically come with high interest rates. You usually get somewhere between two and four weeks to pay back the money that you owe. If you can’t repay the loan, you may get an extension.

Hard Money Lenders

If you need to make a big purchase, another source of bad credit loans is hard money lenders. Hard money loans are typically based on the value of collateral such as real estate and do not take into effect your credit history. Hard money lenders are typically individuals who have extra money to lend and are not afraid to work with people who have bad credit. These bad credit loans typically involve low loan-to-value ratios as well.

Regular Lenders

In some cases, you may be able to get back credit loans from regular lenders. Some regular lenders are willing to work with equal who have bad credit as long as they are open to pay higher interest rate than normal. Because of this, you should check with all the lenders in your area when you are looking for financing. In some cases, one lender may turn you down for a loan, while another one is willing to finance you. If you are willing to shop around and you do not give up after the first refusal, you will have a good shot at getting approved for bad credit loans with another lender.