Many would think that it is impossible to borrow such huge amount of money from loan lenders because of their poor credit scores. During the economic downturn, many had lost their day jobs and they had to find other alternatives to support their financial commitments. As the regular banks are selectively approving personal loans based on the applicants’ current financial status – only those who have good credit scores and possess land properties are eligible for having such high-amount loans.
Instead, many have turned to non-bank lenders that offer such loans for applicants who have low credit scores. Since loan lending service for people with Bad Credit is an extremely a competitive industry, there are many non-bank lenders that offer their own distinctive different loan packages that are meant for specific applicants. When it comes to applying $10,000 Bad Credit personal loans, there are a few things that you should know:
1. Unsecured loans are expensive – it’s risky for non-bank lenders to offer loans without collateral. These types of loans normally have high interest rates making these loans cost more than secured loans. Therefore, most conventional bank lenders don’t such applications from applicants who have Bad Credit.
2. Don’t act too hasty by signing up several loan packages – You will likely to experience a tremendous drop of your credit score if your applications are approved by different non-bank lenders. Take note that “greed is not good” – don’t simply sign up more than loan purchase agreement.
3. Not all non-bank lenders are totally reliable – Although there are many non-bank lenders operating their business online – there are few of them who have received bad feedbacks. You can check the credibility of their loan lending service via Better Business Bureau’s (BBB) business directory and look at their BBB ratings.
4. Non-bank lenders offer loan packages with different interest rates – Most of these packages have high interest rates, but not all of these packages have the same cost. Take your time to shop all loan packages that offer by different non-bank lenders. Bear in mind that you choose the right loan package based on its low interest rate and its affordable monthly loan repayment plan.
5. Make sure that you have a stable job – most lenders would prefer loan applicants who are under employment – at least 90 days of employment. In some circumstances, some non-bank lenders offer loan packages for applicants who are temporarily unemployed, but these personal loans cost higher than normal loans. If you are unemployed, you are advised to seek a guarantor for such loan application.
It’s important that you consider all the risk of having a Bad Credit personal loan and make sure that you’re able to pay the monthly loan repayment as agreed.