What You Should Know About Personal Bad Credit Loans

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What You Should Know About Bad Credit Personal Loans
If you have a job, a checking account and/or a clear title to a vehicle, but you have bad credit, you may be
targeted by payday advance companies or car title loan companies. Some of the companies that offer bad
credit personal loans have been investigated by the Federal Trade Commission. The fees charged by
companies for these small loans for bad credit risks are much higher than the fees charged by banks and
other lending institutions for standard loans. These bad credit personal loans have been called a debt
trap. Before you take one of these small loans for bad credit, consider your options.
http://www.badcreditresources.com/bad-credit-personal-loans.html
If you have a job and a checking account, talk to your bank first. Just because you have bad credit does
not mean that they will not approve a small loan. If you have a clear title to a vehicle, then the chances of
your being approved are even better. Many people think that because they have bad credit, they will
automatically be rejected by a commercial bank or lending institution. They think that they will only
qualify with companies that advertise "no credit check", bad credit personal loans or small loans for bad
credit risks. The truth is that lenders consider different factors when approving loans. If they do approve
your application and you make your loan payments on time, then you will also be building a good credit
history. Payday advance and other small loans for bad credit risks do not report to the credit bureaus.
They will not help you improve your credit score.
If the bank will not approve your application, consider borrowing from a friend or family member. You
can write up a promissory note that will be legally binding. If you need money quickly to pay mortgage,
rent, utilities or another creditor, talk to them first. If you just need a little extra time to pay, then they
will usually work with you. A late fee will be less than the fees charged by a company offering bad credit
personal loans.
If you are active duty or retired military, there are emergency funds available. Check with your
commanding officer. In fact, companies that offer payday advance and other small loans for bad credit
risks are required to inform military personnel that they have other options.
If you must take one of the bad credit personal loans, borrow only what you must have to get through
this emergency situation. Borrow only what you can afford to pay back on your next payday. Companies

that offer payday advance and other small loans for bad credit risks charge roll-over fees if you are unable
to repay at your next payday. Because of these roll-over fees, people have paid as much as $60 to borrow
$100. The roll-over fee is not applied to your balance. You cannot make partial payments on these bad
credit loans. They must be paid in full.
If you are searching for small loans for bad credit risks, then your real problem is bad credit. Once you get
through this emergency situation, consider making efforts to repair your credit score. There are do-it-
yourself kits and companies that offer bad credit repair. It is possible to improve bad credit scores. It takes
time, patience and a little know-how, but it is worth the effort. Credit repair will probably cost less than
the fees charged by companies offering bad credit personal loans and it will save you money in the long
run.