Has your credit reached a point that you can no longer receive a loan because you have derogatory information being reported to the credit bureaus? You are not alone. There are millions of individuals who have bad credit, and more are joining their ranks each day as the cost of living has increased and wages have remained stagnant. Perhaps you have been behind on some payments, such as your mortgage or automobile loan. Or you might have had a credit card payment that was sent in late. These things happen and are happening with more frequency now that the world is involved in a financial crisis. You can, however, borrow up to $10,000 today by taking out a personal loan.
Secured and Unsecured Personal Loan Choices
There are two basic types of personal loans, secured and unsecured. The secured personal loan is by far the easiest to obtain. In a secured personal loan, you will pledge collateral in the form your home or automobile. Collateral that is pledged against your secured personal loan can be sold in the event that you fail to honor your repayment agreement, which makes the secured loan more favorable for lenders because they are not taking a huge risk when loaning you money. This lower risk for the lender translates to lower interest rates for you and therefore makes your repayment easier, as you will be paying back less money.
The unsecured personal loan is harder to obtain as you will not be placing any form of security against the loan. The lender will be relying on your personal integrity to ensure repayment, and thus the interest rates that you will pay will be escalated to account for the added risk. You can increase the probability of being approved for an unsecured personal loan by applying with a creditworthy cosigner. The cosigner that you select should have better credit than you and be willing to stand good for your personal loan if you should default or fail to honor your loan agreement. Applying with a cosigner that has established a good credit history can mean that you will receive more agreeable interest rates that will make your monthly payment easier to manage.
Amounts Up To $10,000 Or More
Although personal loans are available in amounts of up to $10,000 (or more depending on your personal situation and income), you should use caution when borrowing. Borrow only the amount of money that you can easily repay based on any budgetary constraints that you have - such as current loans or credit cards that must be paid on each month. Never agree to a payment amount that you cannot fit into your budget without sacrificing other needs.
Beat The Credit Crunch Online
More and more borrowers are finding that they can be approved more easily and more quickly by applying online for their personal loans in amounts up to $10,000, especially now that lenders are tightening their belts during the credit crunch that is sweeping the country. Online lenders have more money to loan than local banks do, and are usually more willing to take risks than smaller banks who may be struggling to stay afloat themselves.