I dont want a payday loan, but need a personal loan and have bad credit. I am actually planning on taking the money and paying off my 3 current credit cards (total is $2k) and rebuilding my credit that way. Any suggestions? And please dont say prosper cause all that did was make me keep requesting and noone ever assisted.
I really wish there was an option for you. However, it is going to be next to impossible for you to find a financial institution that will give you a personal loan if your credit is less than good.
Since your debt amount is reasonably small maybe a temporary second job would be the answer…it would not take long to pay off 2k.
You can get a personal loan from your bank up to $5k depending on the following factors:
1) Yearly income
2) How long you’ve been employed by your current employer
3) How long you’ve lived at your current address
Try a few different banks b/c some may deny you whereas others won’t. If no bank will grant you the loan, try to get a personal loan from your friends or family. Pay them the market value of that loan (5-6% interest) and enter into a written contract with them on payment plans and a due date.
I’ve done this with my parents when I went into credit card debt. I had a due date, a monthly minimum, and an interest rate greater than that of the CD they took the money from (about 6%). It was all in writing in case I failed to fullfill my obligation so it would stand up in small claims court.
The point is to create a win-win. You want the money at a low interest rate, but you need to give incentive for them to loan you money. And security in that you’ll pay them back.
There are institutions who specialized in providing loans for people with bad credit:
Check this site:
Anybody can have a bad credit record. Mistakes do happen. But what we should do is not to repeat the mistakes.
Follow the same advice when it comes to loans. If you have a bad credit history, then go for a bad credit loan. It is a feasible loan option to let you fulfill your financial goals. A bad credit history can include arrears, defaults, bankruptcies, County Court Judgments etc.
Usually, adverse credit loans are given as …..