Top 5 Bad Credit Installment Loan
Top 5 Bad Credit Installment Loan
One of the most difficult situations to handle is applying for a loan when you have bad credit score. You are not the only one caught in this situation. There are a number of people who are finding it really difficult to get a loan in times of their bad credit situation.
Bad Credit Installment Loan
A bad credit installment loan is a blessing for all those who have been denied a loan due to their bad credit score. These are short term loans. These loans are offered for a period of 14 to 31 days, even before their payday could arrive. It is a short term arrangement for their immediate cash requirements. The loan can be repaid in installments.
Features of Bad Credit Installment Loan
* There is no credit check
* No collateral required for unsecured bad credit installment loan
* Very little documentation required
* Bad credit situations like bankruptcy, non payment of loan installments, late payments are eligible for a bad credit installment loans
* These loans gain on quick disbursements
* Easy repayment installments are offered to borrowers
* The interest cost on these loans are very high
Top 5 Bad Credit Installment Loans
The following top 5 companies offer some of the best bad credit installment loans
* Wells Fargo – The Company has been in existence for more than two decades now and has been catering to a number of financial requirements of its customers.
* Citi Group – Citigroup is known for its wide variety of bad credit loan schemes. Some its best mortgage loans schemes and bad credit finance programs puts it in the list of preferred banks for a bad credit and housing loan
* Bank of America – Featuring in the list of top 5 companies offering loan schemes for bad credit loans, Bank of America offers a number of other small loans together with bad credit loans
* Banco Popular – It is one of the most popular banks for bad credit loans.
* Gold West Financial – A leader in mortgage loans, it offers some of the best in bad credit loans.
By: Chris M. Alexander
Finding A Bad Credit Mortgage
Bad credit loan mortgages or non-status mortgages are purposely intended to serve people with a bad credit history. According to a recent survey, one fifth of all adults are not able to qualify for a standard mortgage as a result of a previous or current bad financial situation.
Credit history is based on information retrieved from sources including Public records such as electoral roll information, court judgments and bankruptcies; and Information provided by financial institutions and other lenders such as banks that provide credit accounts and lending facilities.
In order to calculate the potential risk in providing loans to the person, most lenders use independent credit reference agencies to gather and assemble this information since they are permitted by law to review a mortgagee’s credit report before granting approval.
Bad credit rating usually results from failure to pay off outstanding debts or other credit payments on time, due to factors such as outstanding rent or mortgage arrears, county court judgments (CCJ) or bankruptcy. There are also other reasons that can result in a bad credit record which include:
1. Foreclosure
2. Heavy medical bills
3. Settlements arising due to Judgments /divorce
4. Multiple credit cards
5. IRS debt
Bad credit mortgage is designed for people who are unable to take out a mortgage from high-end mortgage providers. However, there are several providers who are willing to take a risk and provide loans for individuals with bad credit ratings, but at a higher rate or lower maximum amount.
Normally, a bad credit mortgage loan has an introductory interest rate that is fixed for 2-3 years, which is substantially higher that the rate pertaining to a conventional 30 year fixed rate loan. This is due to the extra risk the lender has to take, because with a bad credit, the borrower’s probability of default on the home load is higher than someone with good credit. However, after the initial period, the interest rate on a bad credit mortgage will adjust periodically.
There are also a few factors that most lenders of bad credit loan mortgages will look into, before granting the loan mortgage to people with bad credit history. This includes:
1. Employment history and income stability
2. Current monthly debt
3. Value of the property and
4. Down payment
Since loan requests from people with bad credit do not fit under the standard underwriting guidelines, fees charged by lenders on bad credit mortgage loans are also significantly higher than those charged in a conventional or standard home loan. This can range from 1% to 6% of the total loan amount.
Since individuals who get a bad credit mortgage usually do so mainly because they want to put their credit back into good standing, or as an opportunity to clean up credit history, the higher interest rate need not necessarily lasts for 30 years. Additionally, if the monthly loan payments are in time for two consecutive years, the bad credit mortgage can be refinanced with a conventional loan at a much lower interest rate.
By: Andrew Green
Have Bad Credit History? it is not the End of the World!
Anyone applying for a loan with a bank and who has good credentials such as steady job, good salary, a respectable living would naturally hope to sail trouble free through the choppy waters of approval process.
But if he receives a letter expressing sorrow for a rejected application, he is bound to be perplexed if not downright outraged. The reason for rejection might lie not in the immediate present but in the past – the unpaid bills, the defaulted or late payment of credit card dues etc. may have cast a shadow over the prospects of getting a loan.
These delays and defaults are regularly reported to credit bureaus and are added to your credit history. To lending firms, they are nothing less than red flags as a bad credit history is, in other words, a record of you being an unreliable and risky investment.
But that does not mean that doors of all lenders are closed. There are companies that are willing to give you loans but against a higher interest rate. This is logical as your past record points you as higher risk investment prospect and if you are able to convince the lender by your other credentials such as steady job and good salary, the chance of your getting a bad credit loan becomes high. Let’s discuss some of these loans.
Home financing
Since real estate loans come under secured loan category, arranging bad credit finance is not all that difficult if you can prove that you have a steady and good income source, and you can arrange for good down payment besides providing references of former landlords.
You can search online by typing the keyword bad credit home loans and you will get hundreds of lenders willing to provide bad credit loans. But some of them may be fly by night operators so do an extensive research before you finalize one.
Vehicle financing
When it comes to bad credit vehicle financing, the banks stay out. But you can approach a finance company which may lend you the requisite cash depending on the type of vehicle, your insurance and driving record, your annual and monthly income, any recommendations or referrals that you might provide.
Other financing
Things become a little difficult when it comes to personal loans as there is no asset to cover for the loan as in case of real estate or auto loans. In this case one can opt for secured personal loan where some asset owned by you is provide as security for the loan amount. In case of unsecured personal loan you need to have really good job at really good place backed by references to convince a lender to borrow you some money.
Payday loans for bad credit
There is one more option available – the bad credit payday loans which is surprisingly fast and hassle free, if your need is small and only for short term. These loans are available to everybody regardless of the credit history and approval is granted very fast (within minutes of filling up an online form). The money gets credited straight into account within 24-48 hrs. Besides, there is no paperwork involved and thus payday loans for bad credit are great solution for meeting emergency needs.
The tenure of bad credit payday loans is short (2-3 weeks) and there is deferral facility available for a fee if one can’t repay the loan on designated date though one should not make deferral a habit as interest rate is higher and one can get entangled into debt spiral if is not careful in managing the loan.
By: Daniel Bell