A debt consolidation loan is a type of loan used for paying off creditors. Borrowers often take out debt consolidation loans to lower their rates and payments. One can choose between a secured loan, in which his/her home is used as collateral, and an unsecured loan.

A borrower can also choose to work with a debt consolidation program, where a third party agency is involved to negotiate lower rates with creditors. Before choosing this route, one should be sure to do the proper research; compare pay back dates, fees, and estimated monthly payments.

On a personal level, if you are unsure about which option is right for you, consider seeking advice from a credit counselor. They can break down each option in detail for you, analyzing the pros and cons according to your financial situation.

A debt consolidation loan from A Bad Credit Lender can provide you with the cash you need in order to consolidate all of your debts in one low monthly payment. A debt consolidation loan can be a great relief from having multiple credit card and mortgage bills that have to be paid each month. Instead, we can consolidate your loans into one simple payment — less hassle, less chance to miss payments and be assessed late fees etc. Regrdless of whether you own your own home or have yet to become a homeowner, we can provide fiscal options. For homeowners, we often provide private loans based on the equity you have in your home. Our debt consolidation loans are a great alternative to high interest credit cards that can go through the roof if you go over your limit.

Feel free to reprint this document as long as all the URL links are intact.

Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides Bad Credit Debt Consolidation, bad credit home loans, and bridge loans. In addition, Greg is one of the main contributors to the Coastal La Jolla Funding — A California Hard Money Lender.

Share This

Once upon a time, the term “bad credit loan” was thought to be a dead end situation. Today, with Americans carrying more debt than ever before, bad credit is often a way of life for millions of Americans. In fact, recent studies have estimated that 20% of Americans would fall under the category of “bad credit borrowers.” While this is obviously not an ideal situation for borrowers, it has become a fact of life for many. These borrowers must turn to bad credit loans for home purchases, refinancing, home equity lines of credit.

The term bad credit loan is actually a generic term for a sub prime or a hard money loan. Bad Credit Lenders are going to have a higher APR that a traditional or conforming bank loan, owing to the greater risk that a borrower poses. Bad Credit Loan Lenders always have a minimum loan amount, some as low as 5K and others as much as 100K. Bad credit loan terms vary as well, anywhere from 2-20 years.

Bad credit loans are typically secured with existing equity in real estate, although this may not always be required. Often times, 25% equity is required for a lender to make a bad credit loan. Unsecured bad credit loans do not require equity or security against the loan.

There are many sources for bad credit loans. The first example is for small loan amounts and is known as a check advance — often referred to as a payday loan. In this case, the borrower issues a check against which the lender offers a bad credit loan. For larger bad credit loans, a more traditional loan process will occur — with disclosure docs etc. These loans may take up to three weeks to process, although a private loan can take place as quickly as four days.

Feel free to reprint this document as long as all the URL links are intact.

Corey Senn is a Senior Partner with Bad Credit Lender, a California based private lender that specializes in hard money loans and bad credit loans. Located in La Jolla, California, Bad Credit Lender provides competitive private bad credit loans, bad credit home loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

Share This

If you’ve been searching for a personal loan but don’t have adequate credit or bad credit, you face an uphill battle. The first step is to get a copy of your credit report. You can order a free credit report from any of the three major credit bureaus. Finding out your credit score is often a daunting prospect as many borrowers fear what they might find on their credit report. More often than not, however, your credit score is actually higher than you might think. In addition, there are often steps you can take to combat any deleterious marks on your credit score. With time (and without additional bad credit) and diligence, you can raise your bad credit.

For the time being though, make the best of your situation and work towards making your financial goals a reality. Remember, a bad credit situation can happen to anyone. One way to obtain a loan with poor credit is with an unsecured loan for bad credit.

What is an Unsecured Bad Credit Loan?

An unsecured loan is any loan that is not secured by any asset or equity in real estate. Typically, a loan is secured by some form of collateral - equity or a percentage ownership in a piece of property. In certain cases, a borrower has equity in a home but does not want to use this as collateral and therefore applies for an unsecured mortgage loan.

Because the loan is unsecured, the lender has fewer options if the borrower defaults - this becomes especially risky with a bad credit loan. In this case, it is difficult for the lender to recoup their investment. Unlike with a secured poor credit loan, the lender does not title to a property that would essentially serve as their insurance against default by the borrower. For these reasons, the interest rate on such a loan will be higher than traditional loans or even secured bad credit loans.

Interest Rate For Unsecured Bad Credit Loans

The interest rate will certainly vary according to several factors. The first is credit score. The lower the score the greater risk of loan default, thereby corresponding to a higher interest rate. The monthly income level of the borrower will certainly affect interest rate. How stable a borrower’s financials are will certainly affect the interest rate. Another important factor will be the loan amount. Most bad credit lenders have rates that begin at 11% and can go as high as 17%. Add a few percentage points to this and you will probably have the basic rate for an unsecured bad credit loan.

The best thing for a borrower to do is get several quotes from different lenders. They are free and provide the borrower with valuable information on whether or not they are eligible for such a loan and how much they are go to be paying each month.

How Much Can I Borrow?

Every lender and lending institution sets their own minimum and maximum loan amounts. For an unsecured bad credit loan, the typical minimum is $2000 and can be as high as $50,000. Any loan amount above this will probably not be approved for risk reasons to the lender.

What Can I Use the Loan For?

Unsecured bad credit loans can be used for any reasonable purpose. In all likelihood, the lender will want to know what you need the money for. These loans are most often used to pay off accumulated debt, improvements or additions to a house or automobile, or even a wedding.

Unsecured bad credit loans can be difficult to pay back and should not be entered into unless the borrower is out of options and feels that they can comfortably pay back the loan.

Corey Senn is a Senior Partner with Bad Credit Lender, a California based private lender that specializes in hard money loans and bad credit loans. Located in La Jolla, California, Bad Credit Lender provides competitive private California hard money loans, bad credit home loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

Share This