Is there such a thing as Guaranteed Bad Credit Loans? In all honesty, nothing is 100% guaranteed in life and having a poor credit rating and needing a fast cash injection is not the best position to find yourself in. However, there are companies that state they can give you guaranteed bad credit loans. But today I wish to discuss certain ways of getting cash when you really need it that you should definitely try to avoid:
1) Logbook Loans - One of the worst things about trying to borrow with a bad credit history is that no lender wants to trust you. The majority of the time you will be required to offer something as security to obtain a loan. This will usually be your home.
However, it seems there is a new breed of lender who will lend you money and secure the loan against your car. All the documentation associated with the car will be held by the lender until the loan is repaid. You can expect to be charged anywhere up to 500% APR. Which means you can expect to pay back 5 times what you borrowed every year!
2) Payday Loans - A payday loan is basically a short term loan until you receive your salary. There are no credit checks for this type of borrowing, but they will usually only be for a small amount. Many lenders do not actually charge interest if you repay the loan within a couple of weeks.
However, should you choose to take longer to make your payments, you can expect to be charged anywhere up to 1000% APR. So expect to pay back 10 times what you borrowed per year. Another thing that annoys me about payday loan companies is that by charging no interest initially, this can be considered a sneaky business practice. You will obviously remember the lender and will return to them again if you have a financial crisis. This is when you can expect to be hit by the extortionate interest rates.
3) Loan Sharks - This really is a guaranteed bad credit loan, but in no way legitimate! You should be aware that a loan shark will not have a license and is therefore lending money illegally. Usually you can't expect to receive any paperwork and just a verbal agreement is made to repay the money. This is where problems can arise as you may find the interest rates charged get steeper week after week and eventually you have to borrow money just to pay back this loan!
Do you desperately need to know how to find Guaranteed Bad Credit Loans? To learn what others are doing in your situation then Click Here and see what certain companies can do for you. Article Source: http://EzineArticles.com/?expert=Sam_Renstaff |
