If you are desperately in need of a large sum of money to clear your unsettled debt, you would probably turn your head on instant loans online as your loan application would not be accepted by many financial institutions because of your bad credit record. Hence, you are at a financial crossroad as you are unable to perform your financial duties that could affect your family and working life.

It appears that there are a handful of private lenders who are offering personal loans without credit check and verification of income. What is the logic behind those lenders who are willing to grant substantial amount of loans to borrowers who have low credit scores and low salaries (or maybe currently unemployed)?

Loan lending business is indeed a competitive business industry after the recent financial crisis which has affected the world especially the U.S., as many Americans had to succumb to unemployment and debt issues. Most traditional financial institutions are very particular on their applicants' financial status before they start granting loans to them. Therefore, getting loans from private lenders is a current fad for those borrowers who have extremely low credit score and have meager incomes.

For that reason, the actual cost of bad credit personal loans is higher than other regular loans which are offered by traditional financial institutions. It is mainly because of the high interest rate applied to the bad credit loans as private lenders have to bear the risk of having those "inefficient" borrowers who are unable to repay their loans as agreed. Unless the borrower has put up collateral for a loan - for instance, using his home or car as collateral, he can request for an interest rate deduction in which it can lowers the cost of the loan.

Since loan lending business is a lucrative industry, many private lenders attract their potential borrowers by accepting loan application online. It is common to see their marketing approach implying that they are offering loans with no credit check and no income verification. Such loan deals are simply irresistible to most financially weakened loan seekers with low credit scores. In fact, such loan packages are referring to co-signer personal loans.

It is true that a co-signer personal loan does not require any credit check and income verification on the applicants - but it's on the co-signer. Thus, it is important that the co-signer must have good credit score and a stable income. By the way, the approval of the loan amount is based on the total salary earned by the co-signer - that explains why some borrowers are granted with larger loan amount while others don't.

If any lenders strongly convince their applicants that they are offering no-credit check personal loans in which it does not require any verification of income - it could be a trick that often used by scam artists. Hence, you need to apply for such loans from Better Business Bureau (BBB) accredited private lenders.

Read More ..

Many have been affected by the side effects of the recent economic crisis including Paul (not his real name), who is in his late 20's and has been working his fingers

to the bone ever since. He started his small business after he was retrenched during the economic recession. At the same time, he had to bear his financial priorities such as paying off his credit cards and student loans, as well as saving for his children's education. It is common that Paul was stricken by the inability to perform his financial duties due to his non-stable income. He could barely save enough money to feed himself (and the whole family).

When things got worse - for instance, a sudden drop of sales or profit, it would also affect his daily expenses. He had once considered having an early withdrawal of his 401(k) when he felt behind paying all his bills but in the end, he sought a bad credit personal loan to cover his daily expenses - here's how he did it:

1. He started to think realistically- Paul had a low FICO score, which is lower than 660, and it is extremely difficult to get personal loans from traditional and private lenders. Not all lenders are willing to accept any loan application without collateral. At the beginning, Paul was reluctant to accept the fact that the private lenders rejected his loan application because of his low credit score. He even applied for personal loan from LendingClub.com, but to no avail.

2. He began to search for bad credit co-signer loan deals- Since Paul had realized his financial status, he began to compile as much information about getting co-signer personal loans from accredited private lenders from TheFinanceForums.com - an internet personal finance forum which you can look for forum users reciprocate to other forum users' problems. Fortunately, Paul's dad was willing to become Paul's co-signer as he has an excellent credit record, and a few valuable stocks on hand - which it can be used as collateral. In this case, you will be granted a financial assistance by a lender without checking on your current credit score.

3. Find a personal loan with fix rate and term- As you know that the interest of such loan is not tax deductible, it is important to find a loan package with the lowest cost. Avoid getting such loan that works as a revolving line of credit in which its interest rate is changeable. Thus, Paul is tend to be more determined if he chooses a loan product which has fix rate and term, which he can pay off your loan consistently within a certain period.

4. Reject personal loan which has interest rate higher than credit card rates - Paul chose the right loan deal, mainly based on its low interest rate. He knew that it was not worth his money to obtain loans which have higher interest rate than credit card rates.

If you are experiencing the same situation as Paul had, hope that you can gain insight from his experience. Stay determined to find the right personal loan to cover your daily expenses.

Read More ..

The tool many people use to help them get out of their poor credit situation is to apply for easily obtainable blacklisted loans.

How does it happen that so many people are blacklisted?

People fall behind on their payments due to the difficult financial times we experience in South Africa. Good salary earners lose their jobs, while others have to accept a minimum salary with the result that they have to lower their living standards as well.

Unfortunately, debts do not become less. On the contrary, your creditors still expect you to honor your commitments. Some of them will settle for lower monthly repayments but will penalize you by means of additional interest charged on arrear accounts.

What effect can a bad credit situation have on your health?

Stress, anxiety and depression are very common among people who suffer extremely as a result of their poor credit situation.

Does poor health contribute to your bad credit situation?

The answer is a definite yes. Most people are honest and really want to meet their commitments but are unable to do so. These people very often suffer from anxiety stress and depression that can only be controlled by expensive medicine.

Can you be helped by means of applying for blacklisted loans, and is it really a solution to your debt problems?

Yes. It can help you solve your debt problems without you loosing further credibility by going under administration or debt review.

Do you benefit by applying from a lender offering loans to people who are bureau listed?

Financial lenders who offer unsecured loans to people in need of a loan are specialized in helping you get back on track again, thus you will surely benefit by applying from a loan.

Most of these lenders can offer you a variety of options and can help you to select the correct loan product for your own individual needs.

Are you allowed to open accounts again if you applied for a debt consolidation?

You certainly are. You can better your current situation by applying for an unsecured bad credit loan, debt consolidation loan, or a combination of a personal and consolidation loan whereby you can also get some cash back.

What is the difference between applying for debt council and applying for a debt consolidation?

People often get confused by thinking it is the same. It is not. With a consolidation loan your debts get settled at once, and you only have one installment to pay instead of various obligations.

When applying for debt review, your accounts are NOT settled at once. Your debt councilor negotiates for lower monthly installments with your creditors. You then pay the debt councilor a set fee for acting on your behalf.

This is a voluntary arrangement and you may cancel it at any time, but why go the long route of paying for years when you can become debt free at once by applying for a debt consolidation loan with no limitations when you may need financial assistance in the future again?

Lenders offering blacklisted loans to the consumer are experts in helping you back on your feet again and are there for the consumer who are reaching out for help.

Read More ..

Individuals get personal loans in order to care for a wide variety of financial needs. If you have debts to care for, something pricey like a car or motorcycle to buy, or want to complete a
renovation project on your home, these loans can help. When thinking about which bank or lender to get your loan from, remember to carefully analyze your options. Personal loans are not all created equal, and looking around to find a good offer will let you save money in fees and interest charges.

Personal loans are given by banks, credit unions, and additional financial institutions. If you already have a good relationship with a bank, that is a smart place to get started on your search for a loan. Unsecured loans tend to be charged higher interest rates than secure loans, so presenting collateral can help you get a better rate. A second option to think about is getting a variable or fixed interest rate. Variable rates can be dangerous because they can randomly slide up and down; if you are concerned about that risk, go with a fixed rate.

Peer to peer lending has become a popular way to get a personal loan in recent years. These lending networks permit members with good credit to offer loans to one another. The community will process your loan request after they have added you as a member. This is only an option if you have excellent credit; applications from people with bad credit will not be accepted.

Does that mean that you cannot get a loan without having excellent credit? You can get your loan, but you will not have access to the same number of options. To balance out your bad credit score, most lenders will ask you to secure your loan with some kind of collateral. Do not expect to be offered the lowest interest rates either; those are only for clients with perfect credit.

Regardless of your credit score, be cautious when applying for personal loans whose terms seem to be too good to be true. Illegitimate lenders are just waiting to take advantage of you. When you are reviewing a loan contract, be sure to ask for clarification regarding any questions you have so that you understand all the terms clearly. That way you can get good rates on personal loans from reliable lenders

Read More ..