Your Credit Report Is Your Most Valuable Asset for Identity Theft Protection

Keeping tabs on your credit report can be your most important weapon in the fight against identity theft. It contains all of your vital statistics, including your date of birth, legal name, any alias, current and previous employers and addresses. Keeping this information safe is a great way to prevent identity theft.

The report also shows status of your credit, current as well as past this includes a count of open and closed accounts. If your account balances are current or delinquent this is documented. It will show any bankruptcies, liens, judgments and even child support information. If a credit inquiry has been issued in your name this will show in your credit report. The report has very detailed account history information such as loan payments, credit card history as well as your current credit score.

The standard credit score numbers range from 330 to 830. The higher numbers indicate a better credit score, this will increase your ability to get a loan or revolving credit account. There are numerous credit reporting agencies around the country but the big three are Experian, TransUnion, and Equifax. These credit bureaus gather, document and distribute your credit information.

Your credit report is not used solely for financial purposes. Insurance companies typically request copies of our credit reports in order to determine their risk in providing us auto insurance. Potential employers might review our credit report in order to evaluate you for a position you are being considered for. Your credit report may also be your first hint that you have become victim of identity theft!

The criminal act of identity theft happens when your personal financial information is accessed through illegal methods and used for purchases and transactions without your knowledge. The prevalent forms of identity theft are via credit card and bank fraud.

These thieves have no personal regard to the use of your information. The result of this misuse can result in serious financial damage which can affect you for many years to come. While here are a number of things you can do to help minimize your risk of becoming a victim of identity theft we are focusing on your credit report in this article. Getting and reviewing your report is your first step in defending yourself from identity theft. Unless you make the efforts to obtain you credit reports, you may not find out that you have been targeted until the damage is long done.

In order to make sure no one has obtained your identity you need to frequently check your credit report. It may never happen to you, but it is better to be safe than sorry. If you find any inkling that your identity has been compromised you can quickly act upon it. This will avoid the many problems associated with identity theft that can take years to get over.

When you get the copy of your credit report you should first look at the section showing inquiries against this report. Every time you apply for a loan or credit card this will be documented. If you find an inquiry that you did not initiate you should notify the credit bureaus right away.

If you notice any accounts that you do not recognize as yours, notify the credit-reporting agencies. You may want to contact the financial institutions involved as well. While reviewing the report look for any bill which was paid off but still show as outstanding. If any are found notify the agency and request for it to be removed. You must follow-up personally on these corrections and make sure that your specific request has been acted upon.

We need to take identity theft seriously and always be on alert for any signs of fraud. You must ensure that your private information stays out of the hands of criminals. This will help to protect you and your families future.


Do You Need to Resort to Bad Credit Home Refinance Loans?

When you are stuck in a situation when you think that you need to resort to bad credit home refinance loans, you may have to think twice before jumping. Choosing a refinancing scheme may offer you seemingly better options in terms of interest rates and loan payback terms, but are you really looking at the bigger picture? Sometimes it is best to take your time, do the proper investigation, and research into what they are really offering.

Sometimes the benefits will seem great, but if you do the actual math, you will find that you are spending more on refinancing rather than just sticking to your original loan. Before signing that big YES on the loan contract, please do hesitate and give the terms a second look. If the new loan terms offer a lower interest rate than the one you currently receive, then you probably think that it is worth the big step. However, it has become a general rule of thumb for many financial advisors to avoid a lower interest loan unless the difference in the new loan interest rate and the old loan interest rate is at least two percent. Anything that is lower than two percent may not be worth the switch to the new loan that only seems beneficial at first glance.

Another perceived benefit that people have of resorting to bad credit home refinancing is that the monthly payments will be much less. However, this is usually coupled with factor that may make you spend more rather than less at the end of the repayment term. Even if your monthly payments go down by 15 percent, it may end up that your loan term may increase by 5 to 10 years as well. Be aware of the reasons why monthly payments go down if you apply because there is usually a downside to that advantage.

At the end of it all, what you really need to do is to read up and inquire about the different bad credit home refinance loans that are available at banks or lending firms. With complete information on average percentage rate, loan term, and deposit requirement, it may end up that you will not need a refinancing option after all. Measure the difference in what you will pay at the end of the loan term and make conservation projections. This way you can be sure to decline or accept the refinance scheme through relevant and reliable information that will guide you.



Department of Education For Student Loans Helping Everyone Graduate

With the costs of higher education skyrocketing, many students are turning to Department of Education Student Loans to help finance their college costs. The Department of Education has a variety of loans available for students wishing to pursue their college education. Three types of loans available from the DE are Direct Loans, Stafford Loans, and PLUS Loans for Graduate and Professional Degree Students. The number of loans available under the Department of Education Student Loans program is large, so it is in your interest to find out about all other types of federal student loans via the Internet.

The Department of Education Student Loans known as Direct Loans are low-interest available for students and their parents to assist in paying for the student’s cost of higher education. It is made directly with the Department of Education, instead of a bank or other type of financial institution. A major advantage of these types is that you have a single contact for all issues, even if you switch schools.

Under the program, there are four types available. The first is the Direct Subsidized (DSL), for students demonstrating financial need according to federal regulations. The DSL is interest free during the student’s school attendance of at least part time, grace periods and deferment periods. The Direct Unsubsidized (DUL) differs greatly with the DSL, in that it is not based on financial need and interest is always being charged on it (even while student is in school). The Direct PLUS (DPL) are special ones made to the parents of dependent students, as well as for graduate or professional students. Interest is also charged during all periods in a DPL. The fourth type is under the Direct program is the Direct Consolidation(DCL) which allows you to combine all your eligible federal government student borrowings into one single application. The eligibility requirements for each loan differ, so it is best to be informed about the various types of loans available and their specific interest and loan payment terms.

Department of Education Student Loans, known as the Stafford Loans, are one of the most common and low-cost methods of paying for learning at an institution of higher learning. These federal loans are fixed-rate loans for undergraduate and graduate students attending college at least on a part-time basis. For undergraduate students, the Stafford Loans offer a fixed-interest rate of 5.60% and the loan can be used to pay for tuition and other related school expenses. The maximum amount that a graduate student, in school at least part-time, can borrow under Stafford Loans is $20,500.

The PLUS Loans for Graduate and Professional Degree Students (GradPLUS) is a low fixed-interest loan that is guaranteed by the federal government. The interest rate is 8.5% and is deferred if you are in school at least part-time. A co-signer is not required and the interest on the loan is tax-deductible. While this type of loan is not based on income level, borrowers are required to pass a credit check.

David has been writing articles for nearly 2 years. Come visit his latest website that has great resources on financial aid for single mothers [] which helps people find the best financial aid college [] and schools when students are unable to finance their education themselves.


Cosigning a Student Loan An Ugly Truth Parents Need to Know

Parents are always willing to help their kids in any way they can. It is simply a pre-programmed parental instinct. While it is expected to disappear once kids get ready to leave home, long-established habits die hard, forcing parents to oversee the well-being of their kids well into adult years. That is why so many parents take on the responsibility of assisting their kids to get into college, and, sometimes, even to pay for it.

Once kids are out of high school, it is time for a new exciting venture – getting into college. Besides many organizational and financial issues, preparation for college is full of new social and educational hopes and expectations. While it may be somewhat exhausting at times, it is a lot of fun to send your kid to college.

The best way to help your kids achieve a dream of higher education is to help them financially. With tuition costs being raised every year, college education is no bargain these days. This is especially true with prestigious private schools. Even public schools, featuring lower in-state resident tuition fees, are quite expensive when you add up all additional fees, book expenses, dormitory charges, and so forth.

There Are Plenty Ways To Assist Your Kids With College Expenses

Many parents who think ahead and have sufficient financial resources, have usually secured college financing for their kids by either saving money aside or participating in college savings plans, such as a 529 plan. Many just present a lump sum of money to their kids upon high school graduation to cover a part or, sometimes, all of college tuition and fees. Unfortunately, there are a number of families who were not able to accumulate enough savings due to many reasons to help their children with college costs. Very often, the only feasible way to assist children with college education is to cosign on their student loans.

Co-Signing a Loan Is Very Similar To Taking One Yourself

Cosigning a loan is almost like taking a loan yourself. A cosigner has to provide personal information to a lender, as well as to disclose his or her income and assets. Both, a signer and a cosigner are considered to be borrowers from the legal perspective, the only difference being that cosigner would have to make payments on the loan only in case of a default by a primary borrower.

Beware of Cosigning Risks

Putting your signature on any document incurs some kind of liability. This is especially true with financial documents. Therefore, before you put your signature on a legal document, such as a loan agreement, make sure you fully understand what you are getting yourself into.

There are many questions asked by parents willing to cosign a student loan regarding their liability. A simple matter of fact is that parents assume full responsibility to repay the loan if, for some reason, their child fails to do so. The worst case scenarios of loan consignment are as follows:

1. Your child becomes an irresponsible borrower and decides to give up on loan repayment.

2. Due to financial hardship your kid falls behind on payments.

3. Your child becomes seriously ill and/or dies, leaving you with the responsibility of loan repayment.

In all these cases repaying a loan becomes your responsibility, and a true headache. Should you fail to do so, your credit score would be severely damaged, and further collection activities may be imposed by lenders against you. Federal loans, however, waive a responsibility for cosigners to repay the loan in case of a death or terminal illness of a primary borrower.

There Are Always Alternative Ways

If you seriously doubt the ability of your kid to repay a student loan, there are other options to be considered. Your child may try to get a student loan by him or herself. While it may be difficult in case of privately funded student loans to obtain a loan without a parent cosigning it, most government funded loans are easily obtained without help of parents. Attending a less expensive school may be another option. Part-time job while attending college may be a partial solution to college financing also.

Once again, even if you decide to cosign a student loan, make sure you fully understand all implications and possible consequences and have a repayment strategy ready in case your child fails to pay off a loan.

Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on Unsecured Loans. Hilary publishes informative articles about loans for bad credit and other financial topics at


Cheap Car Loans In UK Drive Home a Car at Low Cost Finance

Owning a car is a necessity in out times when we can save money spent regularly on public transportation. But as buying a car requires huge amounts, cheap car loans in the UK has become inevitable for most of the aspirants.

For availing a cheap car loan in UK you should take some initial steps. First of all you should provider a valuable property like home that has sufficient equity to the lender. On securing the loan the lender is in a sound position to cover risks and can lower interest rate. If the amount borrowed is below the equity than interest rate gets reduced further.

After you have offered collateral now decide whether which way you want to keep the cost of the loan minimum. There are two ways you can choose to do so. You can decide for keeping your costs on interest to minimum or you can maintain a low monthly payment.

The best way to cheap car loans in the UK is choosing the repayment duration. It is seen that if the borrower takes the car loan for three year repayment duration and willing to make at least 20 percent as down payment then lenders are ready to offer the car loan at lower interest rate. The more amount as down payments you make, the lower the interest rate will fall for you. So see if you are in a position of making larger down payment so that the loan is not at all a burden for you. This means you are in a better position of saving money.

On the other hand if reducing the monetary outgo towards monthly payments is what you are aiming for, then you can opt for larger repayment duration. You can choose to repay cheap car loans in the UK in six to seven years. The loan amount thus can be spread in greater number of installments which results in reduction of amount payable towards monthly installments.

Another effective way to cheap car loans in UK is comparing as many car loan offers as possible. This will enable you in knowing the current car loan market scenario well. The comparison will especially let you know about prevailing interest rates. Just fill in details of your loan requirements on online applications of the lenders and within minutes all loan details including interest rate will be with you. Now all you have to do is pick up the lender having cheaper interest rate. Also look for the fee.

Remember that interest rates come in variable and fixed options. A variable rate of interest rate is governed be the prevailing market rate and so may be cheaper at the time of applying for the loan but if later it escalates, the borrower would be paying more than anticipated. So it would be wise to opt for fixed low rate of interest as you would be making a low fixed payment always. Do not fear your bad credit as these days lenders easily consider car loans for bad credit borrowers also.

If you stick to these basics, a car loan will seldom be a burden. Clear the loan installments regularly for easy pay back of the loan.


Can You Sue a Car Dealer For Excessive Hard Credit Inquiries?

I came across this question, “Can I sue a car dealer for excessive hard credit inquiries?” when reviewing search terms on my blog and thought this is a good topic for further discussion.

First Of All, What Is A Hard Inquiry?

There are two types of credit inquiries, hard and soft.

A hard inquiry is a credit inquiry pulled for the purpose of obtaining credit. These types of inquiries are usually pulled for things such as a home, auto or personal loan. Landlords and tenant screen services credit inquiries are also considered hard inquiries.

A soft inquiry is a credit inquiry requested for informational purposes. If you request your own credit through a site such as, this is considered a soft inquiry and does not deduct points off your score. Additionally, creditors whom you currently do business with can pull a soft inquiry to do an account review and evaluate your current credit worthiness. Offers for “pre-approved credit are not counted as hard inquiries. Credit inquiries for insurance and employment also fall into this category, as they are not made for the purpose of granting you credit.

How Many Points Can Be Deducted For A Credit Inquiry?

o Each “hard” credit inquiry (meaning the consumer has applied for some form of credit, prompting the creditor to check the credit report or score) that is counted normally subtracts no more than five points from a person’s score.

Auto Loan Inquiries

Auto loan and home loan inquiries are treated a little differently since 2004. Due to the fact that most folks like to shop around for both home and auto loans, the credit bureaus recognized the fact that each inquiry was having a negative impact on credit scores because of the multiple pulls. This practice was hurting the consumer’s credit score and not allowing the consumer to shop around for the best rates and terms.
So, Fair Isaac changed the rules a bit for Auto and Home Loan credit inquiries:

o The credit-scoring model recognizes that many consumers shop around for the best interest rates before buying a car or home and that their searching may cause multiple lenders to request their credit report. To compensate for this, multiple auto or mortgage inquiries in any 14-day period are counted as one inquiry.

o In the newest formula used to calculate FICO scores, that 14-day period has been expanded to any 45-day period. This means consumers can shop around for an auto loan for up to 45 days without affecting their scores. But the old 14-day rule might still apply at some lenders that aren’t using the new version.

o The newest FICO version went online at all three credit agencies — TransUnion, Equifax and Experian — in 2004, Typically it takes lenders months to adjust their processes so they can accommodate revised formulas — and some lenders never adjust.

o The FICO score ignores all mortgage and auto inquiries made in the 30 days before scoring. If you find a loan within 30 days, the inquiries won’t affect your score while you’re rate-shopping.

How To Avoid Multiple Hard Auto Inquiries

If you want to avoid multiple hits to your credit while you’re shopping for an auto loan, you’ll need to set aside a two week period to completely concentrate on getting your financing in place.

o Find Out What Your Credit Score Is:

In order to shop for a loan without being dinged for multiple credit inquiries, you’ll need to know what your credit scores are. This will also help you to determine whether you are “bankable” or if you’re going to have some difficulty getting financing.

You can get an estimate of your FICO Score to give you an idea of the current range of your scores, or you can purchase a 3-in-1 Report with FICO in one easy to read report for just $39.95 so you’ll know exactly what your credit scores are.

o Get Pre-Approved At A Bank:

Now that you know what your credit scores are, call around to local banks in your area and ask, “What is the minimum credit score one needs to have to be pre-approved for an auto loan?”

If you know that your credit scores fall into their “approval guidelines”, then ask what are their interest rates and terms, such as how much down payment are they going to require.

Once you’ve determined the lender with the most favorable terms, go into that bank and apply. Some banks even have an 800 Phone Loan Center or on-line application process available so you don’t have to go anywhere.

Once you have been pre-approved by the lender of your choice, you normally have 30 days before the pre-approval expires.

If you decide to go this route, not only are you getting the best interest rate around without generating multiple credit inquiries, but you’ll also find out how much you’re approved for, which will make shopping for an auto easier in the long run.

o Getting Auto Financing If You’re Not “Bankable”

If your credit scores fall below what you’ve found to be “bankable”, you’re going to need to find financing elsewhere. There are several ways you can do this.

1. You can go through an on-line Vehicle Financing Network. These networks have access to multiple lenders and their guidelines. They will have to pull your credit in order to find out what your scores are themselves, but then they have access to many auto loan financing companies specializing in consumers with “less than perfect credit”. Once they’ve determined which lender you have the greatest chance of being approved with, they’ll forward your application along.

2. Go auto shopping and when you find the car you want, the dealership will be more than happy to submit your loan application to multiple lenders. Remember, if you decide to go this route, you have 14 days of unlimited credit pulls to count as 1 pull.

If you continue to do this month after month, you’re going to see about 5 points deducted off your score every time your credit is pulled.

The Answer To The Original Question – “Can You Sue A Car Dealer For Excessive Hard Inquiries?”

Civil liability for knowing noncompliance: “Any person who obtains a consumer report from a consumer reporting agency under false pretenses or knowingly without a permissible purpose shall be liable to the consumer reporting agency for actual damages sustained by the consumer reporting agency or $1,000, whichever is greater.”

What this boils down to is…..READ WHAT YOU SIGN! If you applied for financing with a car dealership, then you must have filled out a loan application. Did the paperwork that you signed say that they would submit your application to multiple lenders?

If you did not grant them permission to pull your credit, then you may have a case to sue for $1,000, but in my view, it’s going to be way more hassle than it’s worth. The easiest way to handle the situation to your benefit, is to dispute the inquiries with the credit bureaus that are reporting them.

If the creditors that pulled your credit cannot prove “permissible purpose”, then the credit reporting agencies will remove these inquiries. If the creditors come back stating they had permissible purpose, you have every right to ask them for the documentation to prove it. Again, if they cannot come up with that documentation, the credit reporting agencies will have to remove the inquiry.

Once the inquiry or multiple inquiries are removed, you should see an increase in your credit scores. It’s a tiny bit of work on your part, but way easier than trying to sue for $1000.00.


Bank of America Doctor Loan is No Longer Available Now What?


For a long time the Bank of America Doctor Loan was the best and, in some cases, the only option available as financing for doctors and medical residents who wanted to buy a home. On April 1, 2009, Bank of America indefinitely suspended their Doctor Loan Program due to the economy and the impending restrictions on risky lending practices. This has made finding financing for the purchase of a new home very difficult for young physicians, especially those still in residency. There are other programs available, but they are often hard to find and nearly always limited to specific geographical areas. If you can find a lender who offers Doctor Loans in your area, then it is worth checking out because the advantages of owning your own home can often make it more affordable than you think.

As a Realtor that specializes in real estate for doctors I can personally attest to the fact that, for medical residents and young doctors, the most important question when buying a home is whether or not you can afford your own home at this point in your life. With so much student loan debt, many young doctors don’t even consider homeownership until a few years after residency. And many that do are often easily discouraged. However, with the right financing, the mortgage payments for a home can often be more affordable than renting a similar property. The bottom line is that, if you plan on staying in the same city for the next several years, then homeownership is definitely something you should consider, and you should start by learning about Doctor Loans.

So, what is a doctor loan? The Bank of America and similar programs were built on the idea that young doctors do not fit into the conventional profile of homeowners. They have lots of student debt and a comparatively lower income. According to conventional lending practices, they would be very risky borrowers. Lenders offering Doctor Loan Programs understand that a physician with a lot of debt isn’t less creditworthy, that’s just what it means to be a young doctor.

Dr. Loans and other similar mortgages:

Offer 100% financing that requires no down payment
Do not require Private Mortgage Insurance (PMI)
Offer flexible Debt-to-Income ratios that don’t count deferred student loan debt against the applicant
Offer competitive interest rates that do not penalize the applicant for increased risk indicators

What options are still out there? There are some large lenders out there that offer Physician Loan Programs or Doctor Mortgages. They can get you the financing you need and might even be experienced working with doctors, but they operate at a national level and may not have any loan options in your specific area. For instance, there are very few options available in the Chicago area, and those that exist have proven difficult to find for homebuyers. Be careful, though, because many of these mortgage brokerages and lenders cropped up over night after the Bank of America Program was suspended and some will try to take advantage of the situation by charging much higher interest rates than normal citing “increased risk,” and “poorly qualified” borrower background. Remember that the entire philosophy of a Physician Loan is based on an understanding that doctors have unique financial circumstances that do not, if fact, make them risky borrowers.

Another option is to find a local real estate agent or Realtor where you want to buy a home that specializes in real estate for doctors. They will often have a connection to a good mortgage broker that offers Physician Loans. This is often a better approach because your Realtor can help put you in contact with trusted mortgage brokers, and they will often already have a working relationship with lenders who specialize in this field. Plus, you will find that these real estate agents are experienced with the unique work schedules and financial circumstances of doctors, so they are better equipped to help you through the process of financing and beyond.

How can you apply for one? Start by searching online for a Physician Loan Program in your city. Again, many of these programs are limited to geographic areas so be as specific as possible (i.e. “Physician Loan Program Chicago” for Chicago and its suburbs). If you can’t seem to find one in your area, then try to find a local Real Estate Agent that specializes in real estate for medical professionals. They should have a connection with a lender or a mortgage broker that will offer some type of Physician Loan. Then, they should walk you through the entire process from financing to closing.

Remember, not every Doctor Loan Program will be the same. Though, they should all have better terms than the financing that you could get with a conventional mortgage, some will be markedly better than others, especially when it comes to the interest rates that they offer. Just be diligent in checking around and don’t just go with the first lender that says the words “Doctor Loan.” Keep that in mind and you will be well on your way to owning your own home in no time.


Bad Credit, No Problem With High Risk Loans From Specialized Lenders Online


If you know your credit score stinks, then choosing one of the high-risk loans can help you get the cash you need in your pocket fast. When you know you need a little financial assistance, you can turn to online lenders to help you in a pinch. These lenders can help you with many different types of loans and you can get cash in your bank account the same day, if necessary. The best part is they specialize in bad credit, so you don’t have to worry about what your report looks like. Some of these lenders don’t even check your credit, which can be very helpful.

Fast Cash Bad Credit Loans

The easiest type of high-risk loan to get is going to put up to $1,500 in your pocket with 24 hours. Most know this type of loan as a cash advance or payday loan. These fall in the personal loan and signature loan categories and they won’t require a credit check. If you need cash fast, this is the type of loan you want to consider because you can put cash in your pocket within a few hours, in most cases. Simply apply online, become approved, fax in any necessary documents (usually pay stub, copy of ID, and a utility bill), electronically sign your loan documents and get your money.

Unsecured High Risk Personal Loans

Another type of loan you can get if your credit is ugly comes in the form of an unsecured high-risk loan. These loans don’t require collateral, but they will not be all that easy to get. They are often reserved for those with good credit, but some lenders will work with bad credit, as well. It may take up to a week to become approved and get your money, but you can get much more with this type of loan. These personal loans can give you up to $25,000 and often will have a much longer term than other loans. You may get up to 5 years to pay the loan back and this can really help when you need money in a crisis and a few hundred dollars won’t cut it.

Peer 2 Peer or Person 2 Person Loans

Another online loan you can use if you have bad credit is known as a P2P loan. This type of loan website actually connects individual investors with those seeking loans. They can help you get the cash you need very fast and this can really make a difference. Most of the time you can get your loan within a week and the individual investors won’t look too closely at your credit rating. They base the loan on what you have to say and how equipped you are to pay the loan back.

Co-Signer Loans

If you cannot become approved for the loan you need, don’t have any collateral to secure it, and need more than a cash advance offers, then a co-signer may be necessary. You will need someone with good credit that can vouch for you by signing the loan documents, as well. They will be at risk if you don’t pay the loan back and it may be hard to find a co-signer, but you might not have any other option.

Pawnshop Loans

However, if you cannot find a co-signer and the other options above don’t work for you; it is possible to get a pawnshop loan. This is a very easy loan to get, but you will need collateral. The good news is they don’t require the collateral to be a property you own or a vehicle. They will accept jewelry, electronics and pretty much anything of value. Most of the time you will get about half or a little more of the actual value of the item, as the loan amount. You will have 90 days to pay the loan back and get your item out of pawn, in most cases.

When you have bad credit, it can be difficult to get a loan, but if you get creative, you can find the money you need. If all else fails, you can go right back up to option #1 and get a cash advance online. This is probably the most popular type of online high-risk loan out there because of the quick turnaround. The good news is some companies actually give you up to 100 days to pay your cash advance back and they will give you lower payments because of the longer amount of time.

Bad Credit Personal Loans Using A Personal Loan To Rebuild Credit

If you have bad credit title in your credit report, then it doesn’t mean you cannot get a personal loan. There are bad credit personal loans available for people with poor credit rating. If you have poor credit rating — because you made late payments, missed payments, exceeded credit card limits, or filed for bankruptcy — these loans not only solve your money problems, but also give an opportunity to improve your credit score.

Personal loans for bad credit are available in secured and unsecured loans. Since lenders bear higher risks these loans require a higher rate of interest and a higher down payment than the normal loans. The interest rate on the personal loan for poor credit depends mainly on your credit score, the collateral security offered, loan amount and personal income.

Secured personal loans are for the homeowners. Secured loans are the right choice if you need extra money, but you do not qualify for an unsecured loan. These loans require collateral security, which includes items like automobiles and real estate. If you default on the repayment, then the lender is free to sell the security. However, if the value of the collateral is more than the loan amount, then you can expect to pay a low interest rate.

If you don’t own a home you may want to consider unsecured bad credit personal loans. Because unsecured loans are not backed by any collateral security their interest charges are higher than that on the secured personal loans. However, the worse your credit is the harder time you will be approved for an unsecured loan.

In order to get a bad credit loan, first you need to check your credit report and credit score. The higher your credits score the more favorable the rates and the terms that you would get on the personal loan. You also need to provide all your personal details to your bad credit lender accurately because providing incorrect information may lead to the rejection of your loan application.

There are many lenders out there that are willing to lend you their money. You must research the lenders thoroughly, particularly when applying for a personal loan online. Even though you need the loan so bad never agree to pay any types of processing fees. Always check out the lenders with the Better Business Bureau. Since different lenders offer personal loans at different rates make sure the loan on the most favorable terms.

If you can’t get a loan from large lenders, try to approach smaller lending companies. Smaller lending institutions are more personal in considering your eligibility for a personal loan — they take the reasons for your bad credit along with other factors. You can have a chance to get a personal loan, if you can prove that you’re responsible and that you have a stable income to repay the loan.

Once you get the bad credit personal loan and use the money for your financial needs, remember to rebuild your credit by paying on time and sending extra payments whenever you can.