, from a late payment to foreclosure to an error in reporting from the bank. Unfortunately, it can also be the result of identity theft or unpaid emergency medical bills. There's no distinction between situations when these products are listed on a credit report. But you can still get a personal loan with bad credit.
The primary distinguishing factor of the loan is that it doesn't need collateral to secure the funds. Most loans have collateral of some sort: a car, a home, a boat. Nevertheless an unsecured loan is entirely dependant on you paying the money back. There are no other choices for the bank to depend on. For this reason, the individual borrowing money must meet more stringent requirements for any individual loan than for any other kind of loan.
It might sound like qualifying for any loan would be impossible in your situation, but it is not. You will find companies which will lend to you and allow you the opportunity to establish yourself as a faithful client and a good credit danger.
A great lending company will look for ways to work the terms of the loan to meet your needs. They can stretch out the terms of the loan to make the monthly obligations lower and more manageable. They can also put a cap on how much money you are able to borrow so that you don't bite off more than you can chew. Make sure you have a loan officer that will work with you.
When you are approved for a loan with bad credit, you can typically expect to pay a higher interest rate until you prove to the lender that you can make your payments. Once you have shown reliability, the lender may agree to reduce your interest rate.
If you have bad credit, don't be afraid to explore your choices. You are able to find the right company for you and they will work with you to have a successful business partnership.