Personal Loans for Poor Credit

by Tracy Murray-Crouch

There are millions of people today who have poor credit and more fall into this group every day. Most of you know someone who is has lower score and you may be one of those millions with the poor credit. A personal loan can be a lifesaver for many people with poor credit. There are situations that arise unexpectedly, like a car repair or medical bill. Creditors and lenders are showing that they are still willing to provide personal loans to consumers with poor credit.

Getting a personal loan for poor credit from a bank or lender is harder now than ever. There are many financial establishments today that do approve personal loans for consumers with poor credit. Just because your credit is considered poor that does not automatically stop you from some type of personal loan.

For anyone who is looking for a loan, it is important to understand exactly what a personal loan is. Much different than a car or home loan, a personal loan is unsecured, which means there is no collateral provided to secure the loan. This does make providing this loan a little risky for the bank or lender. These loans can be big or small; you might find $25000 personal loans or as little as $1000.

To qualify for a poor credit personal loan, an application will have to be filled out first. The typical information needed is your full name, income, Social Security number, and other necessary information. The one providing the loan will decide your credit worthiness, even when looking at a poor credit history. With a personal loan, a credit check may also be necessary. The amount that is borrowed may be limited to $1,500.

The loan provider may help you in making an application look more pleasing by recommending that you borrow a smaller amount or extending the length of the loan period. This way, the monthly payments may be lowered and even increase the chances of you being approved for the loan.

It will also be decided whether or not you have a steady income. You are more than likely to be approved for the loan if you have been at the same job for many years. However, if you have been changing jobs quite often, it may be less likely to be approved.

The application process of a personal loan is typically quickly and does not require a formal closing. The process includes a written application, payment schedule and promissory note.

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