Personal Loans for Bad Credit that are Not Payday Loans
Posted on | September 18, 2009 | No Comments
Personal loans for bad credit that are not payday loans have become extremely popular throughout the recession. If you need money and do not want to get charged the fees of a payday loan then a personal loan might be just what you need. A payday loan ends up charging you around $10 to $15 for every $100 you borrow for each pay period in which you do not repay the loan. This can be frustrating because the entire loan is due in a short period of time.
A personal loan is due in payments much like a mortgage or automobile loan. You will find that you are likely to get a higher interest rate on a bad credit personal loan but it might still be a much better deal in the long run than a payday loan. Another important factor i a personal loan is that you can usually get larger sums of money than a payday loan. With a payday loan you are usually limited to about $1500. For a personal loan, you can often borrow up to $15,000.
Before you decide that you need to borrow $15,000 you might want to assess your financial situation first. By sitting down, looking at your credit report and monthly expenses, you might find out that you really do not need a loan that big. You especially do not need a loan that large if you are going to have a high interest rate. If your credit score is 650 or below you can expect to see a credit score that is in the upper teens or even 20%. You will be paying interest on this loan for quite a long time if you go through with the process.
A bad credit payday loan might be alluring if you just need a small amount of money and you know you can pay it back with your next paycheck. Even though that sounds easy, please realize that over 60% of people who take out payday loans do not pay them back with their first paycheck. This might seem like an alarming statistic but the reason borrowers get a bad credit payday loan is because they have not been smart with their money. That is not likely to change over night.
When getting a personal loan for bad credit there should be several options. There are advertisements all over the Internet and television for these types of services. It would be wise to contact several of these companies before coming to a final conclusion. Even after you have contacted several companies you still might want to continue your research online or by visiting the company’s physical address. Ultimately you want the best customer service and the lowest interest rate.
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Author: Alan Lake
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