Bad Credit? Here's How You Can Borrow Money
Your options explained: how to get the money you need, even if you've had issues with bad credit before. How to borrow if you've got bad credit - step by step ...
Most credit unions offer flexible loan terms and lower interest rates than online lenders, especially for people with bad credit. The maximum annual percentage rate at a federal credit union is 18%.
Typical unsecured bad credit loans include personal installment loans, credit cards, and student loans. A secured bad credit loan requires that the borrower use a valuable item—like a car, a home, or a piece of jewelry—as collateral to “secure” the loan. This means that if a borrower is unable to repay the loan, the lender is legally allowed to seize the collateral and sell it to recoup their losses.
Allowing them to lower their minimum requirements for a loan. No longer do you need to have a 620 credit score, people with poor credit can get approved. These “bad credit home loans” are known as a sub-prime mortgage. FHA loans allow for poor credit scores as low as 500 with 10% down and 580 score with 3.5% down.
Auto Loans for Bad Credit. You can then use the new loan to pay off your old loan and pocket the difference as cash to be used for whatever you need. To qualify for a cash-out refinance loan, your vehicle must be less than five years old, be in good condition, and have no more than 75,000 miles.
Applying for a home loan with bad credit requires preparing your loan package to meet lender guidelines and explain derogatory credit items. There are loan programs that assist homebuyers with bad ...