subject: Installment-Loans: Lower Interest On Bad Credit [print this page] Installment-Loans: Lower Interest On Bad Credit
Although you can get installment loans on bad credit, and it may even be easy to do, you will be paying much higher interest rates. Lenders need a way to protect themselves financially in case they are not paid back the amount owed to them. Therefore, those with bad credit get the highest interest rates since their bad credit already proves that they have not been as responsible as they could be.
So, if you have bad credit, is there anything at all you can do to get a lower interest rate? If you don't have time to fix your credit before needing the loan, you can always see about getting a secured loan. With a secured loan, you would decide with the lender ahead of time which assets you would be giving to them if you are unable to pay the loan. The assets would have to be worth as much as the loan. With a secured loan however, because the lenders would know they can have your assets should something go wrong, they won't raise the interest rate as high since a high interest rate is their way of protecting themselves financially just in case you are not able to pay back the loan. So, as long as you pay back the loan, you can enjoy a lower interest rate along with keeping your assets!
With an unsecured loan, even though your assets would not be at risk, not only would you be paying a higher interest rate, but if you cannot pay back the loan, interest can continue to accumulate on the unpaid balances, which can ruin you financially. It is therefore always important to check all options with secured and unsecured loans if you have bad credit, or even if your credit is good, it can't hurt!
