If you have bad credit and you need money fast, you may feel as if there is nowhere to go. However,you may want to look into installment loans, which are long term loans, as these exist specifically for people with bad credit. However, it is likely that you will have to be able to prove you are in permanent employment before you will be accepted for this type of loan, as the lender will need to know that you can make the repayments. So how do you get one of these loans?
Having the Right Attitude
First of all, always remain positive. Before you do anything, you also have to do some research. Start with yourself: what is your current income and what are your expenses? You are not trapped by bad credit, but you do need to know just how bad your credit actually is. This will enable you to only approach those lenders that will consider someone with your particular history for their installment loans.
Check Your Options
Ideally, you should be able to go to the bank or your local credit union in order to get a loan. Always try the bank with which you have a bank account. If you are seen as a loyal customer and you clearly explain why you need a loan and how you intend to repay it, they may be willing to consider you.
Next, think about whether a secured option could work for you. If you have some sort of collateral that you can put up against a loan, you will be far more likely to get accepted, particularly if you have bad credit. Additionally, the interest and terms and conditions tend to be much better.
There are still options out there if none of the above works. The best place to look for these options is online. A number of online lenders focus specifically on people with bad credit and many of these could be suitable for you.
Focus on Results
Remember that taking out a loan is a serious commitment. You will be in debt and you will risk damaging your credit rating even more if you default on it. Hence, it may be an idea to take out two small loans and not one large one. You could then have one payment come out at the start of the month, and the other in the middle, for instance. This may make it slightly easier for you to actually meet the repayments. On the other hand, it tends to be more expensive overall.
Remember, everything is about competition and this is the same with installment loans. Lenders do have to compete with each other in order to get the most customers, because they make their
money in part by lending it to you. Hence, use this competition to your advantage and find the one that will offer you the most attractive deals or rates in order to get you to sign up with them.