Borrowing Money When You Have Bad Credit

Money makes the world go round. These days, there is much truth in that statement. For those with good credit, when you’re looking to borrow money, it often means simply heading to the bank, filling out a few forms, and waiting on a financial assessment. Not such a terrible prospect.

However, for those with bad credit, getting a personal loan can often feel like a losing battle. With such strict lending policies, major banks are often unwilling or unable to offer funding when credit is less than good. As a result, those looking to borrow money have to look for alternative sources, and sometimes those sources offer serious financial trouble.

What kind of trouble? Often lenders take advantage of those with bad credit, charging interest far and above what is reasonable. While this may seem helpful in the short term, since they are willing when traditional banks are not, the long term impacts can be devastating and you’ll end up paying far more than the borrowed money is worth.

However, things can become even more problematic when it seems as though even those lenders are unwilling to offer financing. When this is the case, some individuals turn to payday loan companies for quick relief, only to find themselves in deeper trouble than they ever were before. This is because payday lenders offer quick cash, without a credit check, at huge rates with repayment schedules that are often unrealistic. As a result, many borrowers end up in vicious extension situations with no hope in sight.

Instead of those private lenders willing to offer you a loan at an astronomical rate or a payday lender promising quick cash without a credit check, consider what you have to offer as collateral. A paid-off car can be a very viable option and may yield a very favourable loan that works with your budget. A home with significant equity may be another and a home equity personal loan can save you on interest – and you don’t have to worry about closing costs or legal fees.

Don’t let bad credit lead to further bad financial decisions. Do your homework. You have options.

At Prudent Financial, we know how important second chances are when it comes to money. Life happens, and if your credit has been damaged by poor credit behaviour in the past, even if you’ve declared bankruptcy, we know it can be tough to find financial help. That’s what we’re here for. We can help you find the money you need without making things worse!

Call us today to schedule a consultation to find out how: 1-888-852-7647.

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