For people who have made financial mistakes before and are suffering from the disease
called bad credit history, bad credit loans have come to their rescue. Some of the different types of bad credit history loans you can take are:
These days a lot of people who plan to buy a car face the problem of bad credit history. The difficult part is not getting the loan but it is the repayment part that is really painful. The down payment you will have to pay on a bad credit car loan is generally double of what you would pay in a standard loan. Also financial companies charge an interest rate of around 20% on these loans digging an ever deepening hole in your pockets.
Another kind of loan that people with bad credit history take is for personal reasons. Here again you will be charged with higher interest rates for the money you borrow. Payday loans are a perfect example of bad credit personal loans as they are usually meant for a very short time and carry an extremely high interest rate.
The last and the most popular kind of loan is the bad credit housing loan also called the mortgage loan. Buying a house or a property is a very big decision and requires a great deal of investment. This calls for the need of financing which becomes even more difficult in case you have a bad credit history. That's where bad credit loans have stood their ground. Home mortgages generally involve huge sums of money for very large periods of time. Therefore even a slight increase or decrease in the interest rates could mean thousands of dollars that can be saved or lost. One of the side effects of carrying a bad mortgage loan is that you have to pay installments at almost double the standard interest rate.