Do you get confused with those loan product terms which are offered in non-traditional lenders when you are only interested in looking for one thing – personal loan which requires no collateral and fixed monthly repayments. In short, this particular loan is either being addressed as“unsecured short-term personal loan” or “short-term installment loan”; both have the same functionality and high interest rates applied.
Then, you should be worrying on how to get such loans and make the first move. Here’s how:
- Approach your local credit union for a short-term loan if you are a longstanding member with good standing account, to improve your credit.
- Your local credit union will not give you a loan when your credit is low (i.e. lower than 600 FICO score). They suggest that you should concentrate on rebuilding your credit score through these practical ways like removing accurate negative items from your report and paying off outstanding debt. To be realistic, fixing your bad credit would probably take months as the exact timeframe is still unclear. When you’re desperately in need of a loan and you cannot wait for months – normally, they would normally turn you away despite your numerous attempt of initiating a negotiation – and if you’re lucky enough, they would suggest a loan company that you should refer to.
- Hence, when you sense that there’s no positive outcome of approaching a credit union – remember to ask them for a reference – at least a name of a local loan company that you can consider at the end of the discussion. [Check out the real story here]
Now, your main concern is how to avoid yourself from being “trapped” by usurious lenders. Before you start considering non-traditional lenders for short-term bad credit loans – here are a few preparations that you should do:
- Determine the exact total loan amount that you really afford to repay throughout the whole loan term – Many online loan calculators that are available on the Internet and you can estimate the total loan cost and interest rate. Reevaluate your financial position to see how much money you can actually fork out for loan repayments.
- Be sure to have an active savings account which is well-maintained for at least 3 months with good standing
- Get your monthly pay slips, IRA statements and copies of bank account ready. These are the basic documents that lenders require for verification purposes.
To protect your personal interest before you provide them with your personal details and scout for reliable loan companies – here’s what you should do:
- Check out Better Business Bureau (BBB) directory – type the domain “www.bbb.org” correctly
- Check the background loan companies by viewing their respective business reports
- You can also contact your state financial regulator for professional advice