We are living in a very tumultuous time. Our economy is getting worse and unemployment is getting higher. These last few years many people have acquired significant smudges on their credit histories. Facing another recession promises more bad credit scores in the future. Many folks are in need of loans despite their credit scores.
Facts and Figures
Though it seems improbable for folks with bad credit to get a personal loan, especially from a traditional lender, there are solutions to meet the demand, especially since traditional lenders, banks and credit unions, have severely tightened their credit qualifications due to the poor economy. The increasing numbers of people with bad credit, the need for loans by these people, and the higher benchmarks imposed for traditional loans, has led to an interesting phenomenon.
Many private lenders have stepped into the lucrative and demanding market and competition is sometimes fierce. Of course, whenever there is competition the consumer benefits. In the lending market it tends to keep interest rates and fees to a minimum. The bad credit personal loan market allows those with bad credit to really shop for the best rates, fees and repayment terms. The bad credit consumer now has options.
Help Needed and Needs Met
As noted, the lending marketplace has filled up and it is quite diverse. How do you avail yourself of this dynamic loan shopping center? Sign on to the Internet. Simply point your browser to Personal Loan and you will rewarded with scores of lenders who will probably grant a bad credit personal loan to you. You may be able to land a loan from a traditional lender, but chances are slim unless you have been an account holder for some time or have had successful loans with them in the past.
From the comfort of your own home or office, you can shop this lending supermarket. Having all prospective lenders in one place, your computer screen, makes shopping and comparing so easy. You will have the time to do the research and think about the deals that are presented to you. You will be able to round up three to five lenders and solicit bids from each for a bad credit personal loan. You will be looking for the lowest interest rates, low or no fees and repayment terms that are easy on your budget and your pocket book.
Web Lenders and Lender Checks
Never deal with a lender who wants an upfront fee – they tend to disappear after they are paid. And upfront fees are even illegal in most states. While the three to five lenders mentioned above are preparing their bids, you should be checking their reputations. A good starting place would be to access the online listings of the Better Business Bureau. You will find lenders graded and you will find feedback from their past customers. You may also want to check online personal finance forums to see if any posters have had bad experiences with the lenders you are considering.
Online applications are easy to fill out and what little documentation you need can be scanned or faxed. Documentation needed consists of bona fide government picture identification, proof of job retention and salary received, proof of an active checking account, and proof of residence. Once you have made your application, provided your documentation, and settled on interest rates and repayment terms, your cash could be in your banking account within 24 hours, often sooner.