When looking for bad credit loan companies, keep in mind that although you may have bad credit; that
does not mean you should be taken advantage of. You are a potential customer to lenders for people
with bad credit and as a customer you should be treated with respect.
Preparing to Find the Perfect Loan
Prepare yourself on how to get a personal loan with bad credit by understanding what kind of loan or
amount of money you will need. Never sign an agreement until you are fully aware of what is expected
of you from the loaning companies. Also, make yourself aware of any penalties that any bad credit loan
Keep in mind that lenders for people with bad credit will charge you more as far as interest are
concerned, so it is important for you to take that into consideration. Your desire is to take on a loan that
is not going to put you in a worse off condition. Be sure that the company you are dealing with is not
trying to prey on your desperation by making you take a loan that will be more than you can handle.
A company that takes the time to understand your situation and your desire to acquire a loan is
important. Take time to research a company’s record or customer reviews as to their satisfaction. A
little research can go a long way to help you get the loan you desire with a company you will be happy
Banks vs. Credit Unions
When looking for bank loans for bad credit, you may want to think outside of the banking institution
and look into visiting Credit Unions. Banks tend to have very rigid rules and may not be the best bad
credit loan companies.
Credit Unions on the other hand, are more likely to evaluate you as an individual. Since they are owned
by individuals, they tend to be more understanding at listening to your situation and give you
thorough consideration for a loan. Keep in mind they may have certain requirements such as opening an account
with them but in the long run their services may be most helpful to you.
To see a list of Credit Unions in your state please visit: http://thecommunitybanker.com/cu_links/
Peer to Peer and Family Loans
Another alternative to bank loans for bad credit is peer to peer loans. To figure out how to get a
personal loan with bad credit from peers you may consider going to a peer to peer company such as
Prosper or Lending club. The only thing is; you will need to have a minimum of a 600 credit score.
Your next best alternative to peer-to-peer bad credit loan companies is to find companies that will allow
you to make a loan with an individual you know without having to meet a minimum credit score. If
anything you can at least take the principle of peer-to-peer loans and visit a legal advisor on how you
can draw up a private loan with an individual you know. If you’d like more information on peer-to-peer lending, please visit our post at: http://secondchanceloans.org/category/peer-to-peer-loans/.
You can do the same when it comes to borrowing money from family. Be sure to keep things legal by
always draw up the proper documentation and seek legal advice. When you do this, both you and the
lender can agree in writing as to what the requirements are and what interest rate will be if there is any.
Even though you may have bad credit does; it doesn’t necessarily mean you are unable to take out a loan that would be
suitable to your needs. After all, many times bad credit may come about based on circumstances outside of your
control and finding bad credit loan companies that will have your interest in mind are companies worthy of your business.