secured personal loan bad credit

secured personal loan bad credit

Personal Loans For People With Bad Credit Or No Credit

Bad credit or no credit makes it tough – but not impossible – to get a loan. Credit unions, home equity and peer-to-peer loans or even debt consolidation with no loan could improve your credit rating and increase your future options.

Personal Loans For People With Bad Credit Or No Credit

You may have seen it on a sign somewhere or possibly on your TV or computer screen: “No credit, no problem!” Don’t believe it. The truth is, when you need to get a personal loan and you have no credit or bad credit, there definitely is a problem. It’s not an insurmountable one, but it is a problem nonetheless.

Having poor credit makes you a high-risk customer to major banks, credit unions and other major lending institutions. Those lenders have strict standards, and they rely on credit scores when picking their borrowers and calculating loan terms. Unless lenders are assured that their loans will be repaid, they simply won’t make the loan. In addition, heightened regulations and tighter internal controls by lenders in the wake of the Great Recession make today’s lending climate a tough one for borrowers.

So when your credit is bad, you may feel like you’re at the mercy of payday lenders and other sources of financial help, sources that will only loan you money if you agree to repay it at high, or “subprime,” interest rates. These loans are fool’s gold. They often you leave more in debt than you should be. In fact, payday loans are illegal in 13 states because of their predatory terms.

To understand how your credit affects your personal loan options, the best place to start is to understand your credit score. Free credit scores are now available at several online sites.

The National Foundation for Credit Counseling says that 60% of Americans haven’t checked their score in more than a year.

Some common signs of a bad credit score include:

  • You are paying higher interest rates than you see advertised
  • You have stopped trying to pay down debt and are satisfied making minimum payments on high interest credit cards
  • You have a history of late payments for housing, utilities or other monthly bills
  • Your checking account is overdrawn on a regular basis
  • You have problems getting a lease for housing
  • Cell phone companies won’t give you a contract

All of these have a negative effect on your credit score, making it more difficult to get a loan. Don’t get sucked into a situation that sounds too good to be true. If you have bad credit and need a loan there are options available but it will take a little time and research to find the one best suited to you.

Credit unions are similar to commercial banks in terms of their services, but they are owned by their members rather than by profit-seeking shareholders. Credit unions are nonprofit institutions, meaning they pass their earnings along to their members in the form of lower fees and borrowing costs and better customer service.

A credit union – especially one affiliated with your employer or one that is community-based – may be willing to look beyond a poor credit history and make a judgment about whether it will loan you money based on your character and your promise to repay, regardless of if you have bad credit or not. Think of them in the way you would a small community bank from years ago.

Although the recent recession forced a number of smaller credit unions around the country to merge with larger ones, almost all credit unions are actively looking for borrowers. If you can afford terms that match your credit history, you are likely to find a credit union somewhere willing to work with you.

If you are thinking of asking a credit union for a personal loan, look for one with which you have something in common. For example, if you are a veteran of the armed forces, you might want to approach the Navy Federal Credit Union. If you are a teacher, there are credit unions created by and for members of that profession.

By joining a credit union, you could position yourself for much more favorable loan terms, regardless of your credit score.

The Navy Federal Credit Union caps its personal-loan annual percentage rate (APR) for members at 18% — and that holds true even if your credit score is 600 or less.

In the same credit situation, a bad-credit borrower might receive a 36% APR from another lender.

Let’s say you have a three-year, $10,000 loan. Here is the total repayment:

The chance to save more than $3,000 makes it worth looking into enrolling in a credit union.

In Shakespeare’s “Hamlet,” the character Polonius admonishes his son Laertes to be “neither a borrower, nor a lender.” While this advice is prudent when dealing with strangers, it might be even more judicious if you’re thinking about borrowing from family members or friends. Not repaying a loan to a relative or close associate can poison relationships in ways that go far beyond a bad credit report.

Nevertheless, sometimes those closest to you are your best sources of funds and a family loan can benefit everyone involved. You should always treat any loan from someone you know just as if it were an important business transaction between you and a stranger. That means it should be formalized with clear documentation and legally recorded. To avoid future problems, create a written contract that includes the loan terms and interest rate, and what will happen if you cannot repay the debt.

If borrowing from a friend or relative is not possible, you can still approach someone with good credit who trusts your capacity to repay the loan and you can ask him or her to be a co-signer on a personal loan from a traditional lender. With a qualified co-signer, the lender will set the loan terms based on the credit score of the person with good credit, who will then be equally responsible for repayment. All payment information will be recorded on both yours and your co-signer’s credit reports, so if you default on the loan, or you’re late with payments, you will severely damage your co-signer’s credit score. However, if you make timely payments, your own score will improve, making it easier to obtain future loans without a co-signer.

If you have equity in your home, you can apply for a home equity loan or home equity line of credit (HELOC). Home equity is the difference between the amount your home can be sold for and your mortgage. Your home is used as collateral, and home equity loans can be obtained regardless of your credit score. The interest rate is usually low, because the loan is secured by the home. Also, the interest you pay on a home equity loan is usually tax-deductible.

Unlike a home equity loan, which is a lump sum of cash, a HELOC acts like any other credit account. You can access money when you need to, up to the loan’s credit limit, and you must pay it back according to a predetermined schedule. In both cases, it is important to remember that tapping your home equity puts your property in jeopardy if you don’t repay the debt. But if you are disciplined and have a reliable source of income, it is an inexpensive way to borrow from a reputable lender if you have bad credit.

One of the benefits of a home equity loan or HELOC is the extended loan term (15 or 30 years). The long term will substantially lower your payment, though you will pay more in interest over that time period.

Peer-to-peer lending, also known as person-to-person lending, is a relatively new loan form, having only been around since 2005. It’s an online platform that allows you to borrow directly from another individual rather than from an institution. Potential borrowers can post a loan listing on various peer-to-peer websites, indicating the amount wanted and what it’s for. Investors review the loan listings and choose the ones they wish to fund.

Your credit score is still a factor, but since an individual investor has much greater leeway in how it is to be weighed these loans are often more readily available for people with bad credit. Lending standards are significantly more lenient and interest rates are usually lower than those offered by traditional lenders. In addition, peer-to-peer websites help evaluate risk for the lender, while verifying the lender’s credentials for the borrower.

Applying for a Bad Credit Secured Loan is a good option for people who have bad credit scores

but need cash immediately. This type of loan allows people with bad credit

scores to borrow a certain amount of cash with collateral.

Applying for Bad Credit Secured Loan

Applying for a loan is easy especially with collateral placed against the loan. Here are some facts about secured loans:

of the collateral - The collateral is a way to ensure that the borrower will

pay the lender before the deadline.

  • Lenders

    are readily available - With collateral, borrowers will not have a hard time to

    search for lenders that will provide loans.

  • Available

    for everybody - This loan can be availed by almost everyone with bad credit

    scores as long as collateral is provided to secure the loan.

  • This type of personal loan can be availed anytime as long as you place collateral.

    with bad credit scores can loan - Obviously, this loan is intended for people

    with bad credit scores due to delayed payments and other causes.

  • Interest

    rates - High interest rates are expected in this type of loan. The main reason

    for this is because having bad credit scores disqualify people to apply for a

    maximum amount for loans - Borrowers can borrow large amounts of money to make

    sure that they will meet their financial requirements.

  • Benefits that I can get from this Loan

    Once you have already applied for this type of loan, you need to know the benefits that you can get from it.

    - Just like any other loans, it can be used for different purposes depending on

    your choice.

  • Satisfies

    the financial needs of a person - It satisfies the financial needs of a person

    because it is easy to avail and can be used to many other purposes.

  • Improves

    credit score - With this loan, you can improve your credit scores by paying the

    right amount before the monthly deadline.

  • Improving Bad Credit

    A bad credit might be caused by delayed payments or due to inability to pay monthly bills. You need to know how to improve your bad credit so that you

    won't be able to have problems in the future in case you will need money.

    on time - Once you have availed the personal loan, be sure to pay your bills on

    time. This is to make sure that you will not have problems in the future.

  • Make

    a dispute report - Make sure that you check your monthly bills on expenses and

    credit card usage. If there are problems in your credit scores, then you should

    prepare a dispute letter for corrections.

  • Where to Find Good Lenders

    For you to be able to apply for a loan with reasonable interest rates, you need to find good lenders that will provide you with immediate loans and

    - you can use the internet to search for websites of lenders that provide low

    interest loans and check about their terms and conditions.

  • Ask

    from friends - a good source of information on where you can find good lenders

    would be from people who borrowed money from these good lenders. You can always

    ask your friends about their experiences if they have already applied for loans

    from good lenders. This way, your friends can give you referrals on where to

    find good lenders for loan applications.

  • Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

    Representative Example: If you borrow £1,800 over 24 months at an annual interest rate of 41.2% (fixed), Representative 49.9% APR, you would pay £111.28 per month. The total amount repayable will be £2670.72

    1. Tell us how much you want to borrow and for how long
    2. Complete our simple application form
    3. We’ll search a panel of lenders to find you the best loan
    4. Get an instant decision

    Experts in finding you the right loan

    With over 20 years' experience, we're an established and trusted loan broker - helping people get the money they need so they can do the things they want.

    And we'd like to help you too! Even if you've got a less-than-perfect credit rating, we aim to find you a deal that's the right fit for your circumstances.

    Ocean Finance, a trading style of Intelligent Lending limited. We are a broker, not a lender. To find you a loan, we work with a preferred lender panel as well as panels operated by other brokers. We will search the lenders in order of who offers the best representative APR, first from our preferred panel and then from the panels of other brokers.

    Please note, our website is completely free for you to use, however we may be paid a fee or commission by the lenders or brokers we introduce you to.

    A personal loan is a type of credit that makes a one-off payment of cash into your account. You then make a single fixed repayment each month, with interest, for the lifetime of the loan to pay it back.

    At Ocean, we can find you a personal loan between £100 and £10,000. You can then spread repayments over 3 to 60 months.

    Personal loans are unsecured. This means you don’t need to provide us with something you own, like your home, as security.

    But because the lender doesn’t have this added security, the amount you can borrow is less with a personal loan than with, say, a homeowner loan that is secured to your property. The interest rate is also likely to be higher.

    • Personal loans may allow you to borrow more than you could with a credit card
    • With a personal loan, you agree how much you'll pay each month towards your loan. Your repayments are fixed – as is the interest rate – which makes budgeting straightforward
    • A personal loan is unsecured, so your home is not at risk
    • We’ll look at your credit history when you apply for a personal loan. We specialise in helping borrowers with imperfect credit scores but you should be aware that if you’ve struggled with credit in the past, you may not get the loan or interest rate you want
    • Personal loans tend to come with a higher interest rate than secured loans
    • If you don’t keep up with your personal loan repayments, it'll affect your credit history. This will make it harder and more expensive for you to borrow in the future
    • 49.9% APR Representative

    Can I get a personal loan if I have a bad credit history?

    If you have struggled to keep up with credit card or loan repayments in the past, you may find that you don’t qualify for some of the best personal loan deals that you see advertised. This is because you’ll have a bad credit score.

    But that’s not to say you won’t qualify for any personal loans. At Ocean, we specialise in helping borrowers who don’t have the best credit history or who have not had chance to build much of a credit score. If you’ve been turned down by a high-street lender, we may still be able to find you the personal loan you want.

    Just bare in mind you may have to pay more interest or borrow less if you have a history of bad credit.

    Is a personal loan secured or unsecured?

    A personal loan is unsecured. This means that your home, car, jewellery or any other valuables you own won't be used as security on the loan.

    This can make personal loans a less risky form of borrowing than some other options. If you start to miss your repayments, your home will not be at risk. However, missing payments will negatively affect your credit rating.

    Can I pay my personal loan off early?

    This depends on the lender. Some lenders allow you to pay it off early without any early repayment charges.

    If you're able to make overpayments – perhaps because you’ve had a pay rise or received some extra cash – you can clear your balance early.

    Will I get an instant decision online?

    Yes. At Ocean, we'll provide you with an instant decision if we find you a lender.

    Fill in our online form and simply tell us how much you’d like to borrow, over how long and what you plan to use the money for. We will then search our panel of lenders to find you a loan.

    What can I use my personal loan for?

    You can spend the money from a personal loan on almost anything.

    Popular options include:

    Do you offer no-guarantor personal loans?

    A no-guarantor loan is a type of borrowing that does not require a third party to back your loan application and payments – making them easier to secure.

    However, guarantor loans can be helpful if you have a bad credit history. They give the lender extra security if you’re unable to pay your loan, which means you’re more likely to be accepted for one.

    You’ll be pleased to know we offer both guarantor and no-guarantor loans ranging from £100-£10,000. So no matter what your circumstances, you’ll find the right loan for you at Ocean.

    What other types of loans do you offer?

    Based on Feefo.com reviews - customers who left an Ocean Finance review recommend us with an average rating of 4.7 out of 5 from 667 reviews left by Ocean Finance customers (as of July, 2017)

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    Ocean, Ocean Mortgages and Ocean Finance are trading styles of Intelligent Lending Limited © 2018;. We’re a broker – not a lender. Registered in England and Wales. Registered Office: Think Park, Mosley Road, Trafford Park, Manchester M17 1FQ. Company Registration No. 4291279. Authorised and regulated by the Financial Conduct Authority in respect of its consumer-credit, insurance mediation and regulated mortgage activities. FCA registration number 310069. https://register.fca.org.uk/

    Loans available subject to status. You must be a UK citizen, residing in the UK and be at least 18 years of age. The APR you are offered will depend on your individual circumstances.

    Rates between 8.8% APR and Maximum 1698.1% APR. Repayment terms between 3 months and 5 years.

    Licenced by the Information Commissioners Office, (registration number Z7306888)

    Ocean Finance arranges loans and mortgages from a panel of lenders.

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    Secured personal loan bad credit

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    Secured personal loan bad credit

    Secured Bad Credit Loans:

    Not all people have a gleaming credit record nowadays. Today, people are increasingly being late in paying their financial obligations due to their current financial status, thanks to the dwindling economy, and the result of this, their credit record are not at all attractive to look at. The pay off of this situation is experienced when a person seeks to obtain a loan, and he is either rejected due to his bad credit history or is given a really high interest rate, also due to that same bad credit history. The recourse for this man is obtaining secured bad credit loans.

    This type of loan has been previously frowned upon by the society, but in this day where the economy is in a slump and people need to get money in any legal way possible, this particular kind of loan are now being resorted to by quite a number of people. Why is this loan frowned upon by the society? Secured bad debt loans are not encouraged because this is the kind of loan wherein a valuable property has to be made collateral in order to get cash for the loan. The valuable property is usually a real estate, vehicle or something of that same value. It is hardly accepted by the society in the old times because the property put up as collateral are significantly higher in value than the cash sought to be obtained against it. Yes, it seems unfair to many, but the bad credit of the borrower is the justification for accepting nothing else but a valuable property as collateral.

    In this day that financial slump is a natural phenomenon, people now understand that circumstances are not always in a way that we all would want it to be. Sometimes people, particularly business owners know that they are not perpetually on top of the world. There would come a time that they would need to borrow cash in order to sustain their daily business transactions, and because of the difficulties they have encountered in earlier dealings, their credit history is not as splendid as what they would want it to be. This being said, their best option would be to obtain secured bad credit loans. In seeking this particular type of loan, they are fully aware of what it requires, which is a property valuable enough to be accepted as collateral.

    People who opt for this loan are conscious of the risk they may encounter in the event that the loan will not be paid according to the terms and conditions set up when the parties negotiated on it. The borrowers are well apprised of the scenario that the lender will have full rights to acquire possession of the collateral and put it up on the market for sale in order to recover the amount of the loan that they failed to pay. In obtaining this loan, the borrowers are making a well informed decision such that they cannot prevent the lenders from enforcing the contract in recovering from the collateral.

    This kind of loan, although really heavy as compared to the other kinds of loans, where property is not put up as collateral, is also an answered prayer for a lot of people. At last, people have recourse in the event that they are rejected or given really high interest rate due to their bad credit history. Especially in cases of emergency, and where people are certain to have their business recover financially in the coming months, this secured loan can be said as heaven sent for them. It provides them an instant solution to their most pressing problem, and will be able to settle their obligation once their expected business upturn is achieved.

    Finance and loan companies are the most common to offer this kind of loan. The first thing to consider in obtaining this loan is to select the most trusted lending company in the market. Just because the cash is needed immediately that people have to bite the first offer that comes their way. Borrowers have to be very careful because their property is included in this transaction. In selecting a lending company, it is highly advised to make a simple evaluation according to the feedback that the company received from their clients. The company should be known to be open to constant discussion and negotiation, because new and unexpected circumstances may arise which will affect the financial well being of the borrower, which entails that he renegotiate the terms and conditions of his previous loans. A lending company which has been around the industry for quite a long period of time is most recommended because that means that not only do they give their customer satisfaction, but is constantly living up to the standards set up by their industry, the government and by the law which regulates it.

    One of the highlights if obtaining a secured loan is the reasonable interest rate that the companies give to the borrowers. After a borrower submits a request to borrow money, they will then receive a notification from the company of a meeting wherein they can discuss the terms and conditions of the loan, which will largely depend upon the amount sought to be borrowed, the collateral to be set up and the duration of the contract. In this discussion, the borrower can inquire and negotiate the best terms he thinks in relation to his current needs. The borrower, during this time can set up the loan in a period of time wherein he thinks is most reasonable, that he can pay and settle his obligation such that the lending company cannot go against his collateral. The truly appealing feature of this loan is the fact that the borrower retains full possession and control over the property during the period of the loan and the lending company can only get their hands on it in the event of nonpayment. The collateral surely is put up as a security of the lending company, but, in the same way, much leeway is likewise given to the borrower.

    We are pleased to extend to you the same professional service online as you would receive in our office.

    You may use our services to apply online for secured bad credit loans.

    Let us help you get the credit you DESERVE!

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