Options for Good Credit and for Bad Credit
Are you considering a personal loan for a purchase, extra cash during a difficult time, or for any other reason whatsoever? There are many different ways to go about getting a personal loan and there are options for both bad and good credit. Here are some of those options and what you should consider.
First, you need to understand that there are two types of personal loans. There is the unsecured type which will not require you to put up any collateral. There is also the secured type where the lender will hold the title to a car or some other for of collateral until the loan is paid back.
The first option is where all borrowers should start regardless of whether they have good credit or bad credit. Go to your bank and apply for a personal loan. Make sure you explain your situation and they will see what they can do for you. If you have very good credit chances are you will be approved for some amount. If you have bad credit you might have to put up collateral or get a co signer to get approved.
Second, you should try using a company that specializes in personal loans. There are numerous companies that have a specialty in personal loans and you can even apply right online with most of them. This is great for you because it is convenient and will save you time. Most of these companies have lower requirements than banks so this is a good option for bad credit borrowers.
The third option is to use a creative way to get the money you need from a private source. There are individuals that have a lot of money out there and for the right reason they will lend some of it to an individual as an investment. You can find them by placing an ad in the classifieds or by using a website like Prosper. These individuals will usually charge a higher interest rate, but they will help you get the money you need.
The last option is geared towards bad credit borrowers, but if you have good credit and you need money fast is might work for you as well. It is called a payday loan or a cash advance. You can get as much as $1,500 and you can get the cash the same day you apply. You can go to a cash advance store and apply or you can apply right online and find out if you are approve in minutes. The requirements are very basic and just about everybody will be approved.