Having bad credit will certainly prevent you from obtaining a personal loan from a bank or other such institution, but it does not need to stop you getting money from one of the many private bad credit lenders available. There are many different types of loans aimed at people with bad credit, but they will all be slightly different from the high street lenders that will turn you down. Private bad credit lenders will either apply higher charges to compensate them for their increased risk, or they will offer different types of loans that do not depend on a credit rating to offer security.
If you want to get a loan quick there is no faster type of bad credit lender than a payday loan provider. Payday loans are specifically designed to provide really fast cash advances and the best lenders can get money to you within an hour or so of applying. They do not normally depend on credit checks at all, because they are always for a very limited time and never for large amounts. Unlike a normal personal loan provider, the payday loan lender does not need to know that you can keep up with regular payments for years on end. All the payday loan lender is interested in is that you have a job where your monthly pay is more than the amount you have borrowed.
By keeping payday loans to fairly modest amounts of money which have to be paid back quickly, this type of private bad credit lender is able to keep the information they require fairly simple and therefore have a very quick process. All the best payday lenders have totally online systems now where you just complete a simple form to find out if you can get a loan. You will normally get a response almost immediately and can then finish the process online by simply agreeing to the terms offered. One of the big attractions of this type of payday lending is that the good lenders offer a full service 24 hours a day, seven days a week.
No advice on payday loans would be complete without a word of warning about how to use such loans. They are the ideal way to get a loan quick when you are in a tight spot due to a sudden unexpected expense, but they can cause a lot of problems if they are used in the wrong circumstances. If you use one of these cash advance loans to fill a gap in your finances that is more than just a one-off, you could be creating problems for yourself. They are not a solution to debt problems and if you have a longer term problem you should look to something like debt management instead.
The other thing worth saying is that the charges for such loans are designed on the basis that the loan will be paid back within a short time frame. The charges are far from reasonable if you extend them over a longer period of time, so it is very important to pay them back promptly. This is a key reason for making sure you find a reputable lender in the first place, because it is when you fail to repay a loan on time that the more ruthless lenders move in for the kill with serious penalty charges.
If you need to borrow more than a payday loan lender would allow, there are several other options available for people with bad credit. As mentioned earlier, some specialist private bad credit lenders will lend you money but charge a higher interest rate because of your credit rating, whereas other will offer loans with alternative types of security. The commonest example is a secured loan also known as a home equity loan.
This is where your house is used as security against the money you borrow, so they are obviously only available for people who own their own homes. This type of private bad credit lender is happy to lend you a considerable amount of money, safe in the knowledge that if you fail to keep up with payments, your house can be sold to repay the debt. You will never get a secured loan processed as quick as a payday one, but the process with some lenders is still pretty good.
