If you have bad credit you may be under the impression that there are very few loans, if any, available for you to choose from. The truth is, anyone with bad credit can be eligible for numerous types of loan, especially if you are a homeowner. If you have poor credit you may be eligible for both secured, unsecured, payday, tenant, homeowner and other types of loans.
If you have a bad credit rating and are in need of a loan, you have several options. Different types of installment loans for bad credit will be better than others, depending on your situation. The easiest loan to obtain if you have bad credit will be a secured loan also known as a homeowner or home equity loan if you own your own home.
Why A Secured Loan?
These can be obtained if the borrower has some sort of collateral (something of value) to offer the lender. The collateral may be a home, car, land or any other item of value that the lender will accept as collateral against the money borrowed. A mortgage is probably the most common type of secured loan. Any type of loan that is secured will be advantageous to you whether you have bad credit or not in a number of ways.
Secured loans have lower interest rates, they’re easier to obtain and many may have flexible payment periods. If you have particularly poor credit then a secured loan is your best option. The fact that you are willing to offer security to the lender in return for your borrowing inspires their confidence and boosts your chances of your application succeeding.