Bad Credit Personal Loans That Could Work For You

Most times you think of general loans or financing as large loans meant for the long-term such as mortgages, auto loans or small business loans. But when you need a personal loan or perhaps a business loan that doesn’t come with high federal or state regulations on it, the banks aren’t the only lenders in town. If you’re one of many borrowers looking for any personal loans des moines ia that bad credit consumers can qualify for, you always have options on the table. Many loans will require some form of collateral or personal guarantee, while others may be considered unsecured loans. You would be wise to stay away from debt trap loans like traditional payday loans or title loans.

Fair Interest Rate Personal Installment Loans

If you can’t qualify for a credit card and certain bank personal loans such as debt consolidation financing are out of reach, you might consider a short-term installment loan. There are consumer financing agencies in Iowa that offer these, and unlike payday loans which ask for either full payment of the loan plus high interest in only one or two weeks, these loans are meant to be spread out over months. Now the interest rates can still be quite high, especially compared to mortgages and business loans, especially if your credit isn’t good. But still, these loans tend to offer much less stress on borrower finances with fixed interest rates, and you can usually plan your payments out because you’ll know upfront what you’re paying. And most installment loans can be used for any purpose.

Taking Out Pawn Or Jewelry Loans

While installment loans usually are a pretty good deal if they’re unsecured and you have bad credit, there may be reasons such as higher interest rate payments that deter you from applying for them. But if you have items that can be offered as collateral that are of value but don’t include your home or car, you may want to look at secured pawn or jewelry loans. Your valuables will be appraised, and you’ll be able to borrow an amount that’s usually a fraction of their total value. Usually pawn shops offer a smaller amount in the loan-to-value ratio because if a borrower defaults on the loan, they want to be able to sell the collateral and quickly recoup their losses. There are specific jewelry lenders out there as well as those who deal in antiques who may have even better offers at a higher loan-to-value ratio if you need to borrow even more money.

In conclusion, there’s a lot of personal loans out there you can get without having to own a home and get a second mortgage, or needing to go through a rigorous check while applying for an unsecured loan. But be aware that when you’re trying to rebuild credit that some of these loans are not reported to any credit bureaus, in which case you will not see credit score improvement. If rebuilding credit I’d your main goal, consider applying for a secured credit card.

 

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