Article Surfing Archive

A leading cause of divorces and marital problems is finances, specifically: mounting debts. The specific causes of the debt problems can be family-related, work-issues, or outside financial pressures. Almost anyone can get relief from this situation by getting a loan. A poor credit score is not necessarily an impediment. Persons with a bad credit record can apply for a bad credit loan.

Such a loan can be used for the same purposes (such as paying off high interest credit card balances) as a loan made to people with better credit scores. This is true even if the poor credit score is the result of the borrower's poor choices, unforeseen circumstances or unintentional errors. That would include missed credit card payments, unforeseen emergency medical expenses, etc. Whatever the case, a bad credit loan affords a chance of improving the borrower's credit score and financial situation provided that all the new loan payments are made on a timely basis.

The borrower is also free to use the loan for multiple purposes. It could be used to pay down medical bills, for college tuition, to finance a wedding, pay off the note on a car, consolidate credit card debt or any combination of the above. It is also possible to repair and improve a credit score by taking out a loan for the sole purpose of having something to make regular payments on. A history of regular payments will boost a credit score if there are no late payments. This option is for people who have a sparse credit history and have paid cash for many things.

There is also the option of applying for a secured loan. This will allow the borrower to obtain a larger loan sum: up to as much as one hundred and fifty thousand dollars in most cases. The repayment term for this type of loan can range from as little as five to as much as twenty five years. Unsecured loans are not available with terms and conditions as flexible as these. With an unsecured loan the maximum principle amount is fifty thousand dollars with a maximum repayment term of ten years.

When the loan is secured with the lender by some sort of asset the lender is assured of recovering the loan sum. For this reason secured loans will typically have a lower rate of interest compared to an unsecured loan for a similar loan amount. The borrower has to pay a higher interest rate because the lender is at greater risk and there is less guarantee of repayment. Borrowers should do due diligence and their own research to obtain the lowest interest rate available to them.

The easiest way to do this research is online. A number of lenders exist who offer bad credit loans. Some of them will consider doing loans to borrowers who have received judgments or who are in the midst of court proceedings for non-payment of debt. There are not a large number of lenders who will provide loans of this sort so, a borrower's best chance to find one that will offer an acceptable payment, interest rate, and time table for repayment is with an online lender's website.

The advantage of a high-risk, poor credit loan is that a borrower has a chance to fulfill his financial obligations without his already poor credit score being a hindrance. Using an online lender's website is convenient and it avoids the potentially embarrassing experience of having to ask for a loan in a brick-and-mortar bank face-to-face with a loan officer.

In conclusion, the chance to pay off debts, stay out of bankruptcy or foreclosure, and the possibility of rebuilding a bad credit score are what make these type of loans a good option for persons with poor credit.