Low Income Personal Loans – Borrow Money Today with a Bad Credit Score
Posted on | February 22, 2010 | 1 Comment
Many Americans are likely to look for a low income personal loan as a way to pay bills and make ends meet. If you are looking to borrow money today with a bad credit score you may want to consider a low income personal loan. It is very important to understand that with a bad credit score you could get a very high interest rate on a personal loan or any type of loan for that matter.
The average interest rate for a personal loan is currently between 12% and 18%. With a low income and a bad credit score you are going to find that you are in the highest part of this range or possibly even above 20%. This can be disheartening but sometimes you just need the money to make ends meet.
Unfortunately, with a low income and having a bad credit score you are not going to have much negotiating power. Most lenders realize that you are a bad credit borrower and you are not going to be able to talk them into anything close to a low interest rate. Your bad financial decisions in the past are going to hurt your interest rates today.
One thing that is very important is that you make sure that this loan gets paid off each and every month. If you miss a payment on a low income personal loan you are going to find that the interest rate just increases even more. This could be viewing to huge amounts of debt you may never get out of.
Author: Alan Lake
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One Response to “Low Income Personal Loans – Borrow Money Today with a Bad Credit Score”
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February 25th, 2010 @ 12:23 am
It is surprising to me that borrowing money when having trouble paying debt is a good alternative- especially with high rates and the probability that the borrower will not be able to pay the loan on time. That possibility might hurt the credit score more and impact the borrowers future more.
Look at cash flow- negotiation with rates on credit card companies or existing debt-financial education first. Borrowing more when in financial difficulty is just illogical.