A Story About Signature Loans for People with Bad Credit
There are hundreds reasons you might need to take out a short term loan in your life. For example, you might wake up one morning to find it's April 13th, and you only have two days until your taxes are due. You had a particularly prosperous year last year, and you owe the government some serious cash.
You face one big challenge: in spite of the fact that you put in reserve the necessary funds for the government's bill, your tax account no longer has any money in it due to the fact that you and some associates took an unplanned vacation to Las Vegas. If only the government had sympathy toward your spontaneous lifestyle, you wouldn't have any stress right now. Unfortunately, they don't, and now you're going to have to get someone to lend you enough money to pay your taxes - or you'll be paying the penalty.
And here you are without the cash, and that's not all. You also don't have the good credit a person might use to borrow the cash you need to pay your taxes. It turns out having your brand new Chevy Truck taken back by the bank when you couldn't make your payments ruined your credit. If you had good credit any number of banks or credit card companies would give you the money to pay the government right now, but no such luck.
You have yourself in a serious quandary - how are you going to get the government's money to them when you have no cash and really bad credit? There is an answer, although it's not ideal. Certain types of lenders will give you a signature loan for people with really bad credit.
What exactly is a signature loan? You go to your local bank, fill out their forms, smile, shake their hands, and head home with a wad of cash to help you survive tax day. It's an uncomplicated process, but their going to want more than a big smile from you if they're going to give you the money.
How much money do you make? Any intelligent bank will want to know that your earnings are at least triple the amount of your loan amount. In the face of a sub-600 Fico score, big paychecks will soothe the worries of a skittish lender.
And what about collateral? Collateral is defined as some valuable article the lender could sell on the open market if the borrower decided not to fulfill the obligations of the loan. It's a classic risk-minimizing tool for banks who want to be able to recover all or part of their lost money when they loan to flaky people. Be careful - if you use something you actually care about for collateral, you run the serious risk of losing your valued item.
Once you've shown them they don't have to worry much about you bailing out on the agreement, they're probably going to give you the money. Do yourself a favor - use it for only the thing you intended, and pay it back as quickly as you possibly can! It's time for you to break the cycle of debt and stress that have plagued you in the past.
You face one big challenge: in spite of the fact that you put in reserve the necessary funds for the government's bill, your tax account no longer has any money in it due to the fact that you and some associates took an unplanned vacation to Las Vegas. If only the government had sympathy toward your spontaneous lifestyle, you wouldn't have any stress right now. Unfortunately, they don't, and now you're going to have to get someone to lend you enough money to pay your taxes - or you'll be paying the penalty.
And here you are without the cash, and that's not all. You also don't have the good credit a person might use to borrow the cash you need to pay your taxes. It turns out having your brand new Chevy Truck taken back by the bank when you couldn't make your payments ruined your credit. If you had good credit any number of banks or credit card companies would give you the money to pay the government right now, but no such luck.
You have yourself in a serious quandary - how are you going to get the government's money to them when you have no cash and really bad credit? There is an answer, although it's not ideal. Certain types of lenders will give you a signature loan for people with really bad credit.
What exactly is a signature loan? You go to your local bank, fill out their forms, smile, shake their hands, and head home with a wad of cash to help you survive tax day. It's an uncomplicated process, but their going to want more than a big smile from you if they're going to give you the money.
How much money do you make? Any intelligent bank will want to know that your earnings are at least triple the amount of your loan amount. In the face of a sub-600 Fico score, big paychecks will soothe the worries of a skittish lender.
And what about collateral? Collateral is defined as some valuable article the lender could sell on the open market if the borrower decided not to fulfill the obligations of the loan. It's a classic risk-minimizing tool for banks who want to be able to recover all or part of their lost money when they loan to flaky people. Be careful - if you use something you actually care about for collateral, you run the serious risk of losing your valued item.
Once you've shown them they don't have to worry much about you bailing out on the agreement, they're probably going to give you the money. Do yourself a favor - use it for only the thing you intended, and pay it back as quickly as you possibly can! It's time for you to break the cycle of debt and stress that have plagued you in the past.
About the Author:
Mark provides great information about signature loans online as well as reviewing some of the most prominent signature loan lenders.
posted by Debt Consolidation Loan at
7:05 AM
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