I Have Bad Debt: Is a Secured Personal Loan Possible? 3 Things in Your Favor
Having a history of bad debt can seriously hurt your FICO
, or credit, score. Nobody would deny that, from a lender or creditor's perspective, a borrower who has a lot of debt is a greater lending risk than is someone without much debt.
Bad debt comes to people in different ways. For some, a period of foolish or irresponsible spending without much thought as to the need for future debt repayment is the culprit. For others, merely hitting a financial rough patch through - losing their job, running into unexpected medical expenses, or having to support another family member - through no fault of their own has resulted in the bad debt situation.
Regardless of how you came to your present debt situation, you are likely now very much desiring to pull yourself back out of it again; you would do anything to get out of debt and restore your credit score. But, that doesn't change the fact that you need to borrow money now. A secured personal loan may just do the trick.
If you are saying to yourself, "I have bad debt: is a secured personal loan possible"?, here are 3 things working in your favor:
1. You have a credit history:
Believe it or not, certain parts of your credit score may be in better shape than you think. You see, your score is made up of several credit factors or components that together form your score. One of those components - a full 15% of your score - is your length of credit history. Good or bad, the longer you have had credit, the better that part of your score will be. So, see, you are already better off (at least in that one area) than an 18-year old who is just starting on the path to building a credit history. Give yourself a star!
2. You want a secured loan:
Since you are looking for a secured loan, you have an advantage over people with bad debt who are looking for an unsecured loan. By taking out a secured loan, you are offering some form of collateral to your lender. This means you are less of a risk to them than if you were taking out an unsecured loan.
3. You have access to bad-credit personal lenders:
To catch fish, you need to make sure you have found the right fishing hole. Same with finding the right lender: you need to be building a list of "bad credit personal loan lenders." By putting yourself in touch with the right lenders, you will easily be able to compare your options and qualify for the best loan.
Follow these 3 tips and start building your list of "bad credit personal loan lenders" today. Then, apply to at least 6-7 of them before settling on any one offer.
I Have Bad Debt: Is a Secured Personal Loan Possible? 3 Things in Your Favor
By: Susan Willis
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