If your credit score is less than perfect, you will find that it is really difficult to gain a loan. Fortunately, there are some lenders who can give loans to people with bad credit. Why on earth would any bank be willing to bad loans to people with bad credit? After all, aren’t people in this category at a greater risk of default?
If you really need money to solve your bad financial situation, here is a list of common different types of bad credit loans.
1. Personal loan that people with bad history take is for personal reasons. Payday loans are a perfect example of bad credit personal loans as they are usually meant for a very short time and carry an extremely high interest rate.
2. Another common bad credit loan is the mortgage loan, also called housing loan. For most family, buying a property or a house may be a very big decision and requires a great deal of investment. So, they need the help of mortgage loan indeed. One of the side effects of carrying a bad mortgage loan is that you have to pay installments at almost double the standard interest rate.
3. A bad credit car loan is a necessity for your car purchase if you don’t have enough money. Usually, most financial companies charge an interest rate of around 20% on the car loans digging an ever deepening hole in your pockets.