Posts tagged: Poor Credit Loans

Loans for People with Poor Credit

Many, many of us are dealing with a damaged or demolished credit score right now. We got in over our heads with too much car, or too much house, or too many nice clothes, or whatever it was – and now we’re staring at sub-600 FICO scores. But that doesn’t mean we have no need for borrowing money in our lives anymore. We actually might need a little borrowing power now more than ever, and that’s why we’re on the hunt for loans for people with poor credit.

There are actually all kinds of loans for poor credit, there’s a whole subset of the lending market dedicated to helping out people just like you and me who made some mistakes with borrowing money in the past. Here are just a few of your options as a damaged credit borrower:

Home Loans for Poor Credit

If you’ve hurt your credit score, but you’d still like to borrow money to buy a home, or refinance the one you have, you’ll need to find the right kind of lender. These kinds of loans are available, and they usually carry much higher interest rates than traditional home loans.

Car Loans for Poor Credit

I once knew a guy that owned a used car lot where they sold almost exclusively to people with no credit at all, or very bad credit. Many of his customers were undocumented immigrants who didn’t have a social security number, let alone a FICO score or well established credit history. He ran a nice little business helping these folks get into cars, but he did charge them 18% to 24% interest. I guess they were just doing what they had to do.

Personal Loans for Bad Credit

These are probably the most famous (or notorious) bad credit loans. Around ten years ago you started to see check cashing and payday loan stores pop up all over the place, offering people small loans of a couple hundred to a thousand dollars to help them get to their next paycheck.  These loans are very often borrowed by people who have damaged their credit to the point that normal credit cards or signature loans are not an option for them.

Keep this in mind as you investigate these different types of loans for poor credit. Just because you have bad credit now doesn’t mean you always have to. You could just as well be a credit superstar within the next few years. It’s just a question of committing yourself to managing your finances a little more carefully and reducing your need for borrowing. That’s kind of how credit works – the less you need it the more people want to give it to you.