$10,000 Bad Credit Loan

by : Emilie Smart

Loans like this are available to help most people that require extra money and can be used just like a regular loan. Poor credit histories can be caused by deliberate actions from defaulting on a loan to simple mistakes like a missed or late credit card payment. If a person is accepted for a loan then there is a good chance they may help their credit rating.

The money from a bad credit loan might be needed for a forthcoming wedding, for a child's further education or even to consolidate existing debts which have become a burden. There are people who borrow money even when they do not need it because they want to repair their credit score. They use a loan that they can pay regularly, as a means to achieve this.

$10,000 Bad Credit Loan
By arranging a loan this way you have two options of borrowing money; the secured and unsecured loan option,

  • Through the secured option
    The borrower can take up an amount in the range of 10,000 - 150,000 dollars for a period of 5-25 years.
  • Through the unsecured loan method
    an amount in the range of 2,000 to 50,000 dollars is available for borrowing but this sum has to be paid back in a period of 6 months to 10 years.

The risk of defaulting is much lower with a secured loan as the finance company take a charge on your property which is also the reason they can arrange the loan at a preferential rate of interest. Unsecured loans will have a higher interest rate so more will be paid back to the lender. It is advisable to shop around for a lender with the lowest unsecured interest rate.

Internet research into bad credit loan companies can even provide certain lenders who will take on applicants who have serious debt problems and previous court judgments against them. Loans arranged when court judgments are in force are harder to find, especially if you have special needs such as extending the period of the loan for example, so applications will need to be carried out online.

A person shouldn't have too much difficulty in arranging a bad credit loan even if they have a previous adverse credit score and it may help improve your situation when you are at you lowest. If you use an online facility, you will not even have the humiliation of sitting in a bank begging for necessary funds.

A Loan arranged this way may at first seem like another debt and something that has a measure of desperation attached, but it can be a positive move to rebuild a broken credit score if used wisely.