A financial advisor will gladly tell you that you will struggle to get an installment loan if you have bad credit. Those that will be willing to provide you with money will also usually hit you with very high interest rates. However, if you have a little bit of know-how, you should be able to get a loan that is affordable even if you have bad credit. Let’s take a look at some key secrets that you need to be aware of.
First of all, before you start looking for installment loans, you have to know who you are yourself. What is your financial situation? Why do you have bad credit? Are all the markings against you valid? You have to be realistic about your situation before you start applying. Also know your strong points. Being employed, for instance, will go a long way towards making you more credit worthy.
Getting the Right Lender
Next, you need to find a lender that offers you a loan with really good terms. This will be the bulk of your research work, but it is certainly worth it. Always look online, because this is where you are likely to find the best possible deals, particularly if your credit is less than satisfactory. A Google search for installment loans for bad credit will reveal thousands of results.
Sifting through thousands of results may seem like an impossible task. However, there are some really good comparison sites out there that you can use. At the same time, do not automatically apply through this site either. Instead, go to the website of the lender that looks interesting directly, as this may help you to find an even better deal. Doing so means you don’t have to pay the hidden charges of the comparison site.
Of course, you should also look for traditional lenders. This is particularly true if you have some form of collateral, in which case even your local bank may be willing to consider you. If you have banked with them for a long time, this is certainly worth trying.
Choose the Right Loan
Finally, you have to make sure you don’t just apply for the first loan that looks reasonable. You have to make sure it is really suitable for you. Secured or unsecured is one consideration to be made. The worse your credit is, the harder it will be to get an unsecured loan at a good rate.
The exception to this is found in small sized loans. If you only need a few hundred, then loans such as payday loans or title loans may be more suitable to you. However, these are often not classed as installment loans as such, as you will generally have to pay them back on your very next payday. On the other hand, if you need emergency cash and you need it today, then these types of loans may be the best possible solution out there for you.