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Personal Loans For Bad Credit
If you have bad credit and need money, we feel that a personal loan would be your best fit. It has a number of advantages over other loan types.
Personal Loan Versus Title Loan
When people think about bigger money loans with bad credit, a title loan often crosses their mind. These are really not the best loans however and in fact should be avoided.
With a title loan, the lender becomes a lien holder on your vehicle. This means that if you default on the loan, not that you are going to, they can take your vehicle. Countless number of people have found out the hard way about this harsh reality.
Personal loans on the other hand are unsecured. This means the lender does not have a claim on any of your property. If you default, they can still sue you and report your information negatively to credit bureaus, but they can not take anything from you.
In addition, title loans still have high fees and interest. Just because they are a secured loan does not mean that the lender is giving you any discount on credit costs.
Personal loans have interest and sometimes fees as well, but they can be less than that of a payday loan. To find out if the rates are going to be better for you, fill out the simple quote form at the top of the page and find out quickly.
Personal Loan Versus Payday Loan
The biggest drawback to the payday loan is the limited amount that you can finance. Most states cap the maximum at well under $1000. So, if you need around 500 dollars, you are in luck. Need 8000 dollars, not so much.
With a personal loan, you can get a quote on our website for up to $50,000. Don’t get carried away and take out a loan for too much money though. Just take what you need to avoid excess interest.
The next biggest drawback to a payday loan is the cost of financing. With the short loan terms and high fees, you are often paying interest of over 400%. It might be a fee of only $20 per $100 borrowed but that is for a loan that is two weeks long. Sky high interest when calculated.
Personal loans have much lower interest rates. Your exact rate will depend on what your credit score is, your job history and a few other factors. We are not lenders so we can not quote you an exact rate.
Finally, payday loans are just not available in every city while personal loans are.
Personal Loan Versus Family Loan
Borrowing from friends and family is often a viable option for small dollar amounts. For larger amounts like $8000 however, it can be a problem.
When you borrow from friends and family, feelings can get hurt if they think that they are not being appreciated. In addition, that family member might feel that they are due special treatment because you owe them money. This can cause tension that can really damage a relationship.
With a personal loan, the lender has no emotional stake in the money. It is merely a transaction.
Finally, when you borrow from friends and family, you are putting your finances out there for them to see. Sometimes it is best to keep those things private.
Personal loans, by comparison, are discreet. Your lender keeps your information secret and secure. Nobody even needs to know you took out a loan.
If you are looking to borrow $8,000 with a personal loan, you might be wondering how the process works. Here is what will happen.
First, You Fill Out An Online Quote
The form is at the top of the page and asks just for some pretty basic information. You are not going to spend hours filling out forms. Enter the amount of money you need, in this case $8000, and then your contact information. You will also be asked a few other things like your source of income and your banking information. Your lender uses this to deposit your money if you choose to go forward.
Second, You Review Your Offer
If you are approved for your $8000, your lender will send you the details of your offer or you will be directed to their website. Be sure to read all of the details so that you know how much the credit is going to cost you and how you will be paying it back. Make sure you know what the payments are and when they are due. Put the new payment into your budget to see if it fits or if you will be strapped financially for the loan term.
Third, Accept Your Offer
If, after reviewing your offer, you like it, simply accept it. You can often do everything online but your lender might need something emailed to them or may need to contact you directly to finalize everything. Once all is done, your money will be sent to your bank account. You can often have your money on the next business day.
Fourth, Spend Your Money
Now, the money is yours to do with as you please. Use your money to consolidate debt, but a wedding ring, take a memorable vacation, even buy a used car. It is your 8000 dollar loan and you can do with it as you please.
How Loan Monkey Helps
When you need money now, we make it easy by giving you access to a huge online lending network. We are not a lender at Loan Monkey, we just give you the tools you need to get a quote for the money you need.