Very Bad Credit Personal Loans: your Two Best Options

By: Joshua Mann

Do you know what's worse than having a loan bank agent knocking up your door? Having a mobster loan collector breaking it down. And they're not too far away from being the same, are they? If you have very bad credit, you don't have to go borrowing money from the wrong people. There are two very feasible options left for you that fall in the category of very bad credit personal loans.

Of course, opting for a very bad credit personal loan will be accompanied by high interest rates, but if you're deciding between asking a financial institution or a mobster for a loan, it's generally safer to go for the high personal loan interest rates. A good rule of thumb for very bad credit personal loans is to apply for amounts of money you are very sure you're going to pay. This way you'll be able to, not only get the benefit of the very bad credit personal loan, but you'll be in your way to get a better credit history as well.

The first very bad credit personal loan is a secured personal loan for bad credit. This kind of loan is for people that can offer a collateral as guarantee that he or she will pay off the very bad credit personal loan. Things like a home or property can be offered as a collateral. The bigger the difference between the collateral and the amount of the secured personal loan for bad credit, the lower interest rates you'll get.

Don't worry if you're not able to offer a collateral as guarantee because, the second type of personal loan for very bad credit is an unsecured bad credit loan. Sometimes, people that are homeowners that don't want to offer their house as a collateral may apply for an unsecured bad credit loan. Interest rates for these very bad personal loans are higher than any other kind of loan.

That is so because in lack of a collateral, the bad credit lender's guarantee is reflected in those high interest rates. You have bad credit, don't panic. Anybody could be in the same situation. At least you now know about very bad credit personal loans and their options available to you. You're able to make the first step into getting what you want.

If you don't know your credit score, make that your first step instead. Go now and find out how good or bad it is. It's going to be a number between 300 - 850. Higher than 720 is considered a good credit, while lower than 600 is already seen as bad credit.

An unprepared borrower that doesn't know his credit score is likely to be charged more for a bad credit personal loan than what he really can opt for.

You have a potential tool for beating away bad credit and if you use it correctly you'll be in your way to getting rid of financial impediments for the future in case you opt for another loan.

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