If you have been refused loans by high street banks and other lenders you may believe that your financial situation is impossible. Loans enable need-based college students to receive subsidized interest rate payments, which means the loan does not increase in value while the student is in school. A good rule of thumb is to stay under a 10% utilization rate - that means on a $10,000 credit line, you use only $1,000. At the very least your credit rating will be downgraded making borrowing harder in the future. However, it's important to note that interest may still accrue during this time, meaning deferment can ultimately make your loan more expensive.
When doing your homework, don't let the non-profit status of a consumer credit counseling agency fool you into thinking it's the only or best option for getting out of debt. One note before going forward: Bad credit means different things to different lenders. The purpose of an in-person interview is to convince the lender that you can comfortably take on the payments, if you receive a loan. Once you've established these two items, next look for transparency in fees and loan terms. A direct lender will be more willing to give you loan approval if he has a security blanket. You should only take out a bad credit loan if you're confident you can meet the monthly repayments. In the meantime, it gives you breathing room to repay your bad debts and clean up your credit file.
All loans are subject to a flat origination fee of 5%. To qualify, you'll need at least a 600 credit score and a minimum gross annual income of $25,000. Lenders operate differently from banks and credit unions; they focus on offering debt consolidation loans for people with bad credit, as well as those with average or better credit profiles. As we are not limited to a single lender, we can present you with a number of options, so you know you'll still get a fair deal even if you have a poor credit history.
Until you can get your credit score into good shape, you'll most likely have a better chance of success with a microlender who understands that you need money for employee salaries, to buy inventory, and pay the rent to get back on your feet. By taking out a bad credit secured loan, you can even help recover your credit score somewhat, giving you the chance to prove that you have your finances under control and can repay a loan consistently. Not the least, taking out a loan from someone you know may put you in a less than dignified situation.
Yes, you can actually choose your monthly payment, which means the loan can be customized to your needs. We've placed thousands of personal loans for people with special needs, even most students, bankruptcy-filers and low-income individuals. Instead of applying for an unsecured loan for which you need good credit, we could arrange a secured loan for you instead, so the value of your current assets somewhat offsets your bad credit history. Bad credit can be fixed over time, so don't get discouraged if you're in a hole right now.