Low Cost Installment Loans for Bad Credit
Getting low cost installment loans for bad credit is still a possibility even as interest rates go up and lending opportunities decrease for credit-challenged borrowers. Most loans from a reputable bank, credit union or finance company do not charge the extreme interest rates some people with bad credit are often subjected to.
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Bank Loans
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Many local banks offer low cost installment loans for bad credit, but may require a co-signer or some form of collateral, such as interest in a house or a vehicle. Banks are less likely to charge interest rates exceeding 20 percent than lenders such as payday loan companies.
Credit Union Loans
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Credit unions are an especially good option for those seeking low cost installment loans for bad credit, and often do not require a co-signer. Many credit unions will offer small unsecured loans to customers, and are especially popular for loans secured by a savings account or certificate of deposit.
Finance Companies
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It is important to carefully consider which finance companies you deal with, as many are really payday lenders in disguise seeking interest rates well over 30 percent. American General (see Resources section) is a popular finance company that deals with people with bad credit, and does not charge exploitative fees and finance charges.
Auto Loans
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Getting an auto loan with bad credit does normally require a cash down payment of at least $1,000. However, dealing with an auto dealership instead of a "buy here, pay here" dealer almost assures that no matter what your credit standing is, you will get a fair interest rate on an installment loan to buy your new or used vehicle.
Mortgage Loans
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Mortgage loans are usually available at reasonable rates for people with all kinds of credit, as long as they have a stable job, proof of income and a cash down payment. Most bad credit borrowers will be asked to make a down payment of 5 to 20 percent toward the purchase of their home.
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Comments
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spiffykimberly
Jul 25, 2009
Credit unions may not tack on extreme interest rates like the other, lesser known companies do but that doesn't mean that they practically give the money away either. High interest rates are given to those with poor credit in order to protect the lenders depending on how risky they feel their investment is. If the borrow defaults on the loan, the lender will not be left high and dry. The lesson for borrowers is to only borrow what they need, not as much as they can get their hands on. That's when the borrowers get into trouble. -
2cutecg
May 02, 2009
It is not true American General Finance do not give loans to people with bad credit. You read that they do but when one apply for an actual loan they say I'm sorry we are unable to grant you your loan at this time. Please stop giving people false hope in thinking that American General is a generous lender because they are not.They seek people with perfect or none credit just like the larger banks do. False advertisement
