PRLog - Dec. 1, 2012 - The first point I need to cover is that you can not get a personal loan, if you have bad credit. The term bad credit refers to a person that has no credit or has items on their credit report that has been late on their payments more than once or has been closed due to late or no payments received.
Bad Credit Personal Loans
So the term bad credit personal loans is a made up term that has never been used by the bankers or lenders. The average bank or lender will not accept an application if they are aware that you have no credit or bad credit.
When you apply for a personal loan with a lender, the first thing they will do is pull your credit report. At this point, they can see if your credit is good or bad. If it is good and you have a regular income, they may offer you a loan amount. If it is poor, they are required to send you a letter stating that you have not been approved.
So the term of bad credit personal loans has been used incorrectly online for years. There are a number of other alternative that a person could use to receive cash.
One of them is called the payday loan or cash advance loan. Both of the alternative loan options are not cash loans.
The way they work is that once you have been approved, they would send you the money by depositing money directly into your bank account. You would be required to pay the money back, plus a additional fee that would be their profit. You would be required to allow them to withdraw your payments from your bank account. This way, they have a better chance of getting their money back.
This program is similar to you going to a friend to get a loan and you in turn pay the friend back the loan amount and an additional fee for them helping you out.
So when it comes to you having no credit or bad credit, your only real alternative is to go for any of the cash advance or payday loan programs that are offered online. Do not waste your time, going to your bank or credit union, because if you have no credit or bad credit, they can not approved a bad credit personal loan.
Another alternative would be to apply for a secured personal loan. You could only used this type of loan option if you own a home or a car that is paid off. The only problem with this option is that if you full behind on your payments the lender will put a lien on your home or car.