Learn How to Get the Holiday Cash You Need Even With Bad Credit

The holidays are nearing, and if you have bad credit, you may be wondering how you will afford this expensive time of year. You need money for gifts, trimmings, and entertaining your family and friends. If a traditional loan from a regular bank is out of the question because of your bad or damaged credit, maybe you should consider getting a bad credit personal loan for the holidays.

Buy the Season’s Hottest Gifts

A bad credit personal loan can help you pay for the year’s hottest gifts that your kids are ranting for – all the while helping to rebuild your credit file. There are a host of lenders online that will say yes when stuffy old bankers say no.

Your bad credit personal loan can be either secured on unsecured. Which one you chose will greatly affect the interest rate that you will pay.

Secured Loans are Cheaper

The secured personal loan for bad credit is the cheapest in terms of interest. For a secured personal loan, you will provide collateral that will secure the loan in the case that you default. Collateral is typically the title to an automobile that you own, or the deed to your home. If you fail to pay as agreed, the lending institution can sell the item that you have put up for collateral to regain the money that they loan you.

Unsecured Loans

An unsecured personal loan for bad credit borrowers incurs higher interest because the bank is taking a risk loaning you money. The unsecured personal loan is not backed up by any type of collateral. This type of loan is the hardest to get, although having a credit worthy cosigner can greatly improve your chances of receiving a bad credit personal loan. The cosigner would sign the application with you, and agree to pay the debt in the event that you fail to honor the agreement.

Convenient Online Lenders

To apply for a bad credit personal loan, visit the lender’s website. There you will find a link to an application that will ask you for information such as your contact information, social security number, date of birth, employment, income, and personal references. You can fill out the entire application online. Additionally, you can send required documentation such as your picture identification, paystubs, and bank statements to the lender via fax or email. You can electronically sign your application online.

Loan Improves Credit Score

The bad credit personal loan, whether secured or unsecured, can be a great way to not only get the money you need to make the holidays merrier, but also helps you build a better credit history. Because the bad credit personal loan lender will report either monthly or quarterly to the three major credit bureaus – Trans Union, Equifax, and Experian, you can build your credit score up by making timely payments that reflect your willingness to stick to your loan agreement.

Also, this great payment history will be useful when you apply for loans in the future, either with this or a different lender, by lessening the interest that you pay in relation to your new (improved) credit score.