Can you get a personal loan with poor credit?

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• Yes. I used to work in financing and I actually took out a personal loan myself at one point in my life. A fast personal loan can be obtained from several institutions including Citi Financial and/or a number of banks with nothing more than proof of employment and a few assets. So credit rating would be of little importance. In a nutshell, that is the answer to the question.

That being said. Fiscally speaking, it is not recommended since loans of that nature tend to carry interest rates of 24% or higher in some cases and can hang around for a long time even if you are paying them off. Another reason is the institutions that administer these loans are borderline predatory lenders and have many schemes to keep you paying the loan for several years. One of them is called "rolling". It is the process of once you come close to paying off the loan they ask if you would like to refinance or take out more money, when you agree to they re-amortize the term of the loan for another 2 - 3 years. The intent is for you to never pay off the loan and simply keep taking out more and more money until it is completely un-managable. So be warned since this is only 1 of many schemes they use to capture you. I had a loan that was originally $1,000 turn into a $5,000 dollar headache that lasted for about 6 years until I finally got it paid off.

However, they do have some good sides to them. The first is that they can build your credit for you. I know this because I did it. Taking a loan out and then paying it off is a great way to increase your score. What I did was take out small amounts and pay them off over a 6 or 8 month period. What I mean by small was between $600 and $800. Also, in emergency situations they are about the quickest and legitimate way to get money since their approval to closing process can be as short as 1 day, or even a few hours. Depending on the institution, they also are very good with working with you to help with payments, even allowing skipping of payments in most cases. During a time that I was unemployed the institution I used, Citi Financial, let me miss almost 6 months of payments while I got back on my feet. Lastly, if you are expecting a sum of money to come in but it won't be for another 6 - 7 months, and you need money now. It is a good way to get money right away and then use that expected money to pay off the amount. I did this as well. I had sold my home and new I would be getting $8-10,000 within 4-6 weeks while we waited for the deal to close. Yet my car had broken down and needed repair immediately I needed money fast, so I took out a loan to pay the costs of repair within 1 day. The sale went through and I paid the loan off 4 weeks later. There was risk obviously since if the sale had fallen through I would have been sunk but it worked out in the end.

So in closing. - Search local institutions such as a bank or financial company. - Recognize the risk and understand the pitfalls. - Small amounts are better and easier to pay off than larger sums. -Preferable to limit use to emergency situations only. -Once you take out the loan, stick to it and pay it off, don't refinance it, and don't roll it over.

• A person with 'less than perfect credit' can try to obtain a secured credit card. These cards can come with a couple of hundred dollars in fees but can help re-establish credit.

Time is a big factor in re-establishing credit.

If your initial application is denied, wait 6 months and try again. Remember that every credit card application can decrease your credit score so choose wisely.

Once accepted, use the credit card sparingly [charge small amounts] and repay the balance in full each month. This will help in creating a good repayment history.

• When you need loan with bad credit then you should try to get secured personal loans. In secured personal loan you have to pledge collateral. As one pledged certain property, the risk factor for the lender is lessened and thus a lender agrees to give the loan amount at lower APR. You can keep any property such as home as collateral for secured personal loan.
  

Yes, But be ready to pay very high interest rate.

Not repaying your previous loans in a timely fashion can be very expensive.

First answer by Ccheath776. Last edit by Sdresh. Contributor trust: 870 [recommend contributor]. Question popularity: 69 [recommend question]