Tuesday, March 22, 2011

How to Find Trusted Loan Companies for Individuals with Bad Credit

By Jessica Junker


If you have a poor credit score and you're struggling to gather enough money to settle your monetary issues, you might think you'd get even poorer if you borrow bad credit personal loans from creditors. It's mainly because of the high rates of interest applied which cause these financing options harder to be paid back. Furthermore, borrowers have to withstand unreasonable high loan cost - same thing applied to pay day loans, which has interest rate of more than 100 %!

Therefore, it's important to look for reliable companies that provide genuine and ethical bad credit loan lending service. Here are a few tips that you need to take note:


1. Don't blindly depend on local ads from a variety of sources stating that companies can approve loans immediately on the spot - These ads normally appear as web banners or text links, claiming that the loan companies offer quickly loans without any credit check or collateral. These loan companies are likely to provide payday loan - not precisely bad credit loans.

2. Often make sure that these organizations received high Better Business Bureau ratings - Despite the fact that you have found a company that gives bad credit personal loan at very low interest rate, you need to have a look at their business by using Better Business Bureau directory. Always choose a company that has at least a "B" BBB score. Never choose one that has extremely low BBB rating.

3. Seek further opinions from other people - Invest a little while on researching loan companies which give affordable loan amount to their clients. Commonly, you need to look for related info via internet resources which includes finance-related web sites, forums and blogs. As soon as you have obtain a list of companies which provide low interest bad credit personal loans, remember to take a look at their companies via Better Business Bureau directory as stated earlier.

4. Make use of your wise practice - Make use of your common sense in terms of choosing the correct loan company. For example, when a loan lending company would prefer to grant $10,000 bad credit personal loans to their clients without considering their financial rank, or approving loans on the phone spontaneously; it can be a "trap" opened up by scammers. You have to think logically that a loan company will perform credit check on their applicants, and it's an illegal lending practice when a company grants loans spontaneously on the phone.

Always think about these tips mentioned previously when you are searching for a legitimate loan company. Make sure to file for a complaint with Federal Trade Commission (FTC) above outlawed loan lending practices.




About the Author:


No comments: