You need to face the reality that the world has becoming gloomier when you have a very bad credit. It is nearly impossible to obtain loans from both traditional banks and non-bank lenders, and even if you’re able to get one – which most lenders use the term “low interest personal loans bad credit” in online advertisements, the charges or fees are unreasonable high due to its high annual percentage rate (APR). Don’t blame them because they are bearing the risks of unpaid loan repayments when these loans granted to applicants with bad credit history.
So when you’re in a difficult position and you direly need low interest personal loans bad credit – do you still stand a chance of getting it online?
The answer is not a definitely “No” but with a conditional “Yes”. What does that mean?
It means that you definitely don’t stand a chance of getting low interest personal loans bad credit from both traditional lenders and non-traditional lenders. However, you still have the chance of getting such loans from non-bank lenders with either one of these two conditions – you need to put up collateral for your loan application or apply for co-signer personal loans
Things to do before you put up a collateral:
- Get estimation of the market value of your property or asset – commonly your house or car
- Determine the total loan amount based on the total value of your asset
- You have the priority to negotiate with the lender for low interest personal loan bad credit with lower loan amount and monthly repayments
Things to do before you apply for co-signer personal loans
- Approach someone who has a good credit score and financial background – for instance, one of your family members to be your co-signer (also known as loan guarantor)
- In some circumstances, some lenders require co-signer to put up collateral for loan application – some lenders don’t, as long as the co-signer is responsible to repay the borrower’s loan as agreed
- As mentioned earlier, you’re in the position of negotiating with the lender for low interest personal loans bad credit
Once you have chosen one of methods above, be sure to know these particular things before you start signing up:
- Understand how the annual percentage rate (APR) applied is calculated
- Find out whether the loan repayments can be made monthly, bi-weekly, semi-monthly or monthly fixed repayments