Are you looking to take out a 1000 loan? If so, then what type of loans that are available to you will greatly be determined by 1) you credit rating (good or bad) and 2) the purpose of the loan (business or personal). In this post we will discuss options that you have if you have bad credit but still need the loan.
Your first option is to try to improve your overall credit profile by taking out a guarantor loan. Essentially, a guarantor loan is a loan in which someone adds their name, and thus their credit, next to yours in terms of responsibility to the loan. If you don’t pay, then the bank can go after them as well as you, thus reducing their risk and making it easier for you to get a 10000 loan with bad credit. A very large bonus with this type of loan is that becuase you are enhancing your credit profile you are also reducing your interest costs – i.e. the interest rate on the loan will be lower than it would be otherwise.
Another option is to look to they payday loan industry. While this will be A LOT more expensive, if you find that you are in desperate need of cash now and no one will lend to you, then you may need to look into this option. However, be careful – do not take out this loan if you can’t pay it back very soon. The average APR is over 450% for such loans, and because of this you do not want to carry or extend such loans for longer than one or two weeks. They are meant to be short-term financing options only, so if you need to borrow the money for longer periods of time you should look for other options such as borrowing money from family or friends.
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