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Personal Loans For Bad Credit (FULL GUIDE)

so what are the best personal loans that

are available

for those that have bad credit here in

2020

you know for most that have bad credit

you know getting a loan

seems like it could be very far-fetched

but the bottom line is even though you

have bad credit

there are still companies out there

where you can

get a quality loan with reasonable terms

so in today's video we're going to talk

a little bit about

you know what these bad credit loans are

and we'll talk about some of the things

that there are to look for when it comes

to getting a loan

when you have bad credit hey everyone

it's mike adams here with the simple

dollar where we believe that personal

finance

doesn't have to be difficult and we're

here to help so definitely

visit us over at the simpledollar.com

we actually did a full-on article it's

actually a very deeply

detailed article all about the best

loans that you can get your hands on if

you do have bad credit

so we'll break down some of those

details here but not all of them in this

video

so make sure i'll put the link in the

description this video make sure to go

check out the full article later so you

can get all the details

and as well learn about some of the

different companies that are offering

these loans

with the best terms and the best rates

because we've done a ton of due

diligence

again you'll be able to check that out

over on the simpledollar.com but in this

video here what i want to do is

really just cover what is a bad credit

loan

and what does it take to get one of

these bad credit loans you know what are

some of the things that you need to look

for

in a loan to make sure that you're not

paying more than you need to

to borrow you know one of the top things

about loans especially when you have bad

credit

is the fact that it is tougher to get a

loan with bad credit

um doesn't mean you can't get one but

typically the terms are going to be

much much more unfavorable you're going

to deal with higher interest rates

potentially with fees potentially with

annual fees

based on you know you having low credit

so you know obviously to remedy this

let's work on fixing your credit and uh

there's plenty of training right on the

simpledollar.com and here on this

youtube

channel as well with all types of

different strategies and training that

you can use

to better your credit score if we can

better your score

then you'll be able to qualify for

better terms and over time that's going

to save you a ton of money and interest

you know when it comes to loans for many

people you know large

expenses like remodeling a property or

even buying a property

you know most people are going to have

to get a loan to

finance that purchase you know most

people are just simply put not able to

buy their primary residence

in straight cash so you're gonna have to

get some type of a loan from a lender

so can you do it though still with bad

credit yes you can so let's break down

uh what that looks like so you may be

wondering right now mike

you know i don't even know if i have bad

credit i know my credit score

but is my credit score considered bad

and so there is a scale for this that

i'm going to share with you again it's

fully detailed

in the article over on the

simpledollar.com but in short

if your credit score is below 650

okay when you get above 650 that's

considered fair credit

everything below 650 as far as a credit

score

is considered bad credit and so if you

have a score below 650

you know yes you may still be able to

qualify it's gonna be a little bit

tougher

right you know not all banks are gonna

lend to those that have bad credit but

there are banks that

will um it's just gonna take a little

bit more due diligence to find the right

banks to work with and again we can help

you out with that but to give you the

rest of the numbers you know

fair credit is about 651 up to about

700 credit score when you go from 700 up

to about

759ish that's what we call good credit

and anything above 760 we consider

excellent credit and with that type of

credit score you'll be able to qualify

um you know with many more lenders but

as well you'll be able to qualify for

lower interest rates you know many times

with banks you know the interest rate is

based on the perceived

risk that they're taking in lending you

the money

and so if somebody has a really good

credit score you know the risk is low

that they're not going to pay the bank

back okay so whether or not you've had

a history of bad payments with other

loans or lines of credit

um if your credit score is simply low

that's how it's going to be perceived

like hey there's a lot of extra risk

here

that they may not pay us back so to

compensate

us the bank for that risk they're going

to turn around and charge you a higher

interest rate so that's how that works

and some of the different ways that you

might

use a loan again if you have bad credit

you know here at the simple dollar you

know yes you can go ahead and apply

for a loan but we highly encourage you

to focus on increasing your credit score

so you don't have to pay

such heavy heavy interest charges but

regardless there may be some scenarios

where

look you know even if you have bad

credits like look i need to get a loan

for these kind of reasons it may still

make sense for your scenario to go ahead

and get a bad credit loan

and some of the things that people will

use or some of the common uses

for personal loans would be like paying

off high

interest credit card debt so if you have

a ton of credit card debt at a much

higher interest rate

you know a slightly lower interest rate

in a loan which is still

high based on bad credit but lower than

your credit card interest rate

you know consolidating those higher

interest debts into a lower interest

rate debt

could save you money in interest and as

well make it easier for you to pay off

the debt

so for consolidating that can make sense

perhaps you have a home improvement

project or you're paying off medical

bills any type of emergency expenses

um perhaps you have to pay for a wedding

or maybe you're refinancing

different loans you know covering moving

expenses or even starting a business

which would definitely add some risk to

your business because you're

launching it with a loan with interest

however it can

be done and in some situations i've

known many entrepreneurs that have taken

out a loan

have been able to grow and scale their

business and pay off the loan

in short order and now there's all types

of different

loans that might be available and again

depending on your particular situation

there'll be a certain loan type that's

right for you

but there are two forms of bad credit

loans

one of them is a secured loan and the

second one is an

unsecured loan so what's the difference

with a secured loan when you think

secured loan

think collateral okay so you're gonna

have to put up some

type of collateral to get this

particular loan and again the reason

that the bank

wants security is because there's

additional perceived risk

if somebody has a bad credit score um

again in their eyes it's like okay

there's a higher chance they're going to

default here

so let's require some collateral so

let's say you're like okay i want this

loan

and you put up your vehicle as

collateral

well if you don't pay on that loan or

default on the loan

they'd be able to come after you and

take the collateral

to offset some of their losses so a

secured loan

is better for the bank because it gives

them more security and may allow them

to give you the loan that you're looking

for versus an

unsecured loan you see with an unsecured

loan there is

no collateral and unsecured loans are

much tougher to come by

when you have bad credit because again

there's additional risk in the fact that

you have bad credit

so depending on the size of the loan and

also depending on the lender

um an unsecured loan may be tougher to

come by if you have bad credit

but it's not completely off the table

and again on the simpledollar.com we

talk about

several lenders that can get you in an

unsecured loan

that we've already done the due

diligence on so make sure to check that

out over on the simpledollar.com

but once you've dialed in on the type of

loan you're looking for

here are the steps that you're going to

want to take before you actually start

the application process again many times

folks get excited they jump on a bank's

website they see the button to click

for apply and they just go for it

without taking any of the

kind of preparation steps that you want

to take before you apply for credit

so i want to share those with you here

make sure you're taking these steps

before you just go on and apply for a

loan so the first thing to consider is

that you need to truly evaluate

how much money you need now with bad

credit we know that there's going to be

additional fees there's going to be

higher interest on this particular loan

so it's going to be more expensive

compared to if you had really really

good credit so in this scenario

it is best to only get a loan for as

much as you

need don't take out extra and then just

hold on to extra cash

because that extra that you're holding

on to is quite expensive

uh based on the fact that you have bad

credit there's gonna be higher interest

on that amount

so only take out as much as you need the

next thing would be to check

your credit score so many people dive

into applying for loans and lines of

credit without

knowing their credit and they're stunned

when they get denied

and honestly guys that that's a tough

thing for your credit report

you know when you get hard inquiries on

your credit if you have too many of

those it can actually lower your score

so it's always best to have a fairly

confident uh view that you're going to

qualify for a loan or a line of credit

before you actually apply so check your

credit

prior to beginning this process

and from there once you've checked it

and you're like okay you know i got my

640 credit score so i know i have bad

credit but i know exactly where i'm at

and i know there are lenders that will

lend to me

once you've reached that point you can

start putting together all the financial

documents that they'll tell you

in the application or on their website

that you're going to need

in order to fulfill and complete the

application and with many lending

institutions

number three is to get yourself

pre-qualified

for your loan and this is where you

find the lender that you're looking for

that's going to give you the loan that

you want based on your credit

and from there what they do is they do a

soft pull on your credit

and this is where they kind of take a

peek at your credit without going

through the whole report

so you don't get a hard inquiry on your

credit but they're able to see what they

need to see to say okay john you are

pre-qualified for

x you are pre-qualified for this amount

in a loan

and based on what we saw in the soft

pull um these are approximately the

terms

that we'd be able to give to you so when

you're able to get yourself

pre-qualified you know it kind of lets

you know in advance you know what the

numbers are going to look like what the

monthly payments are going to look like

how much this loan is actually going to

cost you before you

actually take out the loan so get

yourself especially we're talking about

a mortgage or a large

loan get yourself pre-qualified with

your lender before

actually applying number four is

actually apply and then finalize your

application

so if you've got yourself pre-qualified

you're satisfied with the terms that

they offer to you

you can go ahead and finalize go ahead

and finish that loan application process

at this point the lender will do an

actual hard inquiry

on your credit they'll take the deep

dive into your numbers into any

documentation that you provided to them

to basically just verify everything you

put on the application

and if everything is as it was stated

they will

move forward and approve your loan and

of course once you have the loan and

you've made your purchase

the next step is to work diligently on

paying this loan off and now again if

you're starting with bad credit you know

you have a new opportunity here with

this new loan

to build your credit score and

strengthen your credit

report so make sure that with this new

loan you treat

this like gold and you pay this loan

on time every time um every single month

for the duration of the loan

if you are able to earn extra income and

pay more towards the principal of the

loan

you'll be able to reduce the loan

balance quicker and pay off the loan

faster and ultimately saving you money

and interest charges over the life of

the loan

and again make sure to check out the

article that we did on this exact topic

over on the simpledollar.com hopefully

you guys found value

in this training and in this discussion

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