When life throws us an unexpected curveball, sometimes we all need a little help. Our first move is to get a credit loan, but we all know that this is a huge mistake. Credit loan companies tend to have an annual interest rate averaging 400%. These companies will prey on people that don’t have access to traditional credit.
When you’re applying for a loan, make sure the lender is pulling a soft inquiry. Your local credit union should be your first stop for a personal loan, because credit unions offer flexible loan terms and lower interest rates than online lenders for those with Bad credit loans. The maximum annual percentage rate at a federal credit union is 18%.
Bank financing has become far less common than it was previously for businesses. Why? Despite improvements with the economy, banks are still reluctant to lend money, particularly to those with poor or no credit. And, there are more options than ever for getting a loan with bad credit loans that don’t rely as much on your credit rating.
More than 50% of all business owners get some financing help from friends or relatives. More than likely, these people want to see you succeed in your venture, and a few might be willing to help finance it. This is a good alternative to bad credit loans, which are generated by companies.
There are both government and private grant programs available to businesses. Of course, there is fierce competition for this type of funding, but it’s worth a shot. Many of these programs are focused on particular industries, geographic areas, or certain types of business owners, such as women and minorities. There are other types of freebies that might be worth exploring, as well, such as free office space, business plan assistance, and more that can help reduce the cost of starting a business.
The term “origination fee” can be twisted. Some lenders may call this a service fee. No matter what the name is, be certain that you look at your rates and terms in great detail.
You will pay more for credit than someone with a better score has to pay. But even the highest rate from lenders, standardly a 36% annual percentage rate, is a minimum part of what might be charged by lenders that don’t do credit at all. Those loans — no-credit-check installment loans and credit loans that are repaid in a couple of weeks — may carry APRs over 1,000% and it’s easy to become a victim in a debt cycle. You have many ways to avoid that, but it’s still good to be careful.
Here’s a pro tip when looking for a personal loan. The web is flooded with lead generating companies. For example, when you do a quick search for “bad credit loans”, you’ll see a mixture of direct lenders and lead generators. A lead generator basically collects your information and matches you with a lender. The problem with this is that you’ll have a handful of emails and phone calls coming in for the next week.