Thursday, April 22, 2010

A personal loan to a person with Bad Credit

If you have bad credit and you are working to rebuild it, you may have difficulty finding a personal loan for bad credit can be understood by making lenders reluctant to take a chance on you. But you're willing to consider creative funding sources, you can find a personal loan. 

Personal loans for people with Bad Credit - Friends and Family

If you do not already owe money to friends or family members, consider borrowing small amounts of money to them. This will help you establish credit, you can list them as credit references when you repay the money when you are ready to rebuild your credit rating. Be prepared to pay interest and do what you must do to repay the loan on time. 

Personal loans for people with Bad Credit - Payday Loans

If you have a job, a payday loan is an excellent opportunity for you to get small, short-term personal loans. Payday loans are not a long term solution to your credit problems, but they can be useful to get you through a rough spot, or the last couple of days before your paycheck arrives. Beware, the interest rates and fees for these loans is high and the penalty for not paying them on time, is unusual. They are not undisciplined. But if you've learned your lesson about bad credit and you're willing to pay your debts on time, a payday loan may be right for you. 

Personal loans for people with Bad Credit - Mortgage Borrowers

Many people have prejudices about pawn shops. They think that people selling their belongings to pawn shops that sell them for a profit to the public. Actually, you can take your valuable belongings for a pawn shop and get a 90-day to 6-month loan. The pawn shop keeps your valuables as collateral for the loan, but you can redeem the subjects at any time. 

Redeemed items are finally sold. If you have valuable jewelry or musical instruments, laptops or other valuable items that you do not want to sell, but you're willing to go outside for awhile to get through a cash crunch, take these items to the pawn shop and find out how much money you can borrow by putting them up as collateral. 

Rebuild Your Credit

None of these options is perfect. Each of them has its drawbacks. But when you have bad credit, you must rebuild and establish a record of paying your bills. When you have once again earned the right to be granted credit, you will find a much wider range of options available to you with. Until then, are personal loans for people with bad credit, unfortunately, your only option. 

Bob B Taylor is a webmaster and publisher of MyPrivateDebt.com. He gives lots of practical advice and reviews about bad debts, including some good ideas to find personal loans for people with bad credit on its website.

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