Bad Credit Loan Lets Cut Through The Hype



Bad Credit Loan Lets Cut Through The Hype

Bad Credit Loan -- Let’s Cut Through the​ Hype!
Bad credit loans seem to​ be a​ hot topic these days .​
In fact,​ if​ you​ need a​ bad credit loan,​ you’re likely to​ find an​ overabundance of​ information.
See if​ this sounds familiar .​
You need a​ loan .​
Maybe you​ want to​ buy a​ car,​ enroll in​ college,​ or​ take out a​ home improvement loan .​
Or perhaps you’re a​ first time home buyer and you’re looking for a​ mortgage .​
The problem is,​ you’ve got a​ bad credit history,​ and you’re afraid you​ won’t be able to​ find a​ lender .​
But then you​ do a​ little research on​ bad credit loans and find that,​ lo and behold,​ there ARE loans for people with bad credit available! in​ fact,​ EVERYONE wants to​ give you​ a​ loan .​
Loans for cars,​ mortgage loans,​ student loans,​ personal loans,​ loans for just about anything you​ want .​
Not only loans,​ but credit cards too .​
Why,​ who would have ever thought is​ would be so easy to​ get a​ loan when your credit history is​ so dismal?
So,​ that’s great news,​ right? RIGHT?
Let’s just stop for a​ moment .​
Ask yourself Why is​ everyone so eager to​ extend credit to​ me when my credit history is​ so bad?
The question can be answered in​ two words -- HIGH RATES .​
Sure,​ you​ can get a​ bad credit loan easily enough .​
But you’ll pay through the​ nose when it​ comes to​ the​ interest rate .​
So What’s the​ ‘big deal’ about paying a​ little higher rate? you​ ask .​
Let’s look at​ a​ few figures .​
Suppose you​ want to​ buy a​ car .​
After looking long and hard,​ you​ find the​ perfect car for $20,​000 .​
So you​ apply for a​ car loan and get a​ loan with no trouble,​ but because of​ your poor credit,​ you​ have to​ pay 20% interest .​
On a​ 60 month loan,​ your monthly payments will be $529.88 .​
Now if​ your credit were very good,​ you​ might have gotten the​ same 60 month loan at​ an​ interest rate as​ low as​ 10%,​ with monthly payments of​ $424.94 .​
The bottom line is,​ over the​ life of​ the​ loan you’ll have paid an​ additional $6,​296.40 in​ interest that you​ would NOT have paid if​ you​ had you​ gotten the​ loan at​ 10% interest .​
Your bad credit loan will have cost you​ $6,​296 more FOR the​ SAME CAR!
But if​ you​ think that’s bad,​ take a​ look at​ a​ home mortgage loan .​
Suppose you​ want to​ buy a​ $100,​000 home and you’re just thrilled to​ find a​ lender willing to​ give you​ a​ 30 year loan in​ spite of​ your bad credit .​
He’ll charge you​ 12% interest,​ and your monthly payment will be $1,​028.61.
If your credit had not been so bad,​ you​ could have gotten the​ loan for a​ rate closer to​ 9% .​
If your credit had been very good,​ you​ might have been charged only 6% interest and your monthly payment would have been $599.55.
The bottom line? That bad credit loan will have cost you​ (over the​ 30 year term) a​ staggering $154,​461.60 MORE than you​ would have paid had you​ gotten a​ loan at​ the​ 6% rate.
No,​ this is​ NOT a​ typo .​
Your lender will pocket $154,​461.60 in​ additional interest payments because you​ were charged a​ higher rate for a​ bad credit loan .​
That’s over 1 ½ times the​ cost of​ the​ house itself!
So why did he charge you​ the​ higher rate? Because he knows he can get it! After all,​ he’s got you​ over a​ barrel .​
He knows (and you​ know) that you​ need a​ loan,​ but because of​ your bad credit no one’s going to​ give you​ one at​ a​ low interest rate .​
Do you​ see now why people are so eager to​ lend you​ money in​ spite of​ your bad credit? in​ fact,​ credit reporting companies make a​ fortune selling lenders the​ names of​ people who have bad credit .​
Those lenders know they can charge them high rates,​ and that if​ they need credit,​ they have no choice but to​ pay them.
So what’s the​ solution? you​ may be thinking What choice do I​ have anyway? My credit is​ bad,​ I​ need a​ loan to​ get a​ house (or car,​ college education,​ or​ whatever) and there’s just nothing I​ can do about it​ except find a​ lender willing to​ give me a​ loan at​ whatever interest rate I​ can get!
But consider for a​ moment whether you​ might be looking at​ the​ situation from a​ completely wrong angle .​
Rather than resign yourself to​ the​ situation,​ you​ should be thinking about repairing your credit .​
Now if​ you​ just found the​ house of​ your dreams,​ you​ may have no choice but to​ act now before someone else buys it .​
But if​ you​ can wait a​ couple of​ months,​ it’s highly likely you​ can make some major improvement in​ your credit score and THEN look for a​ loan.
Maybe this isn’t what you​ wanted to​ hear .​
After all,​ you’re looking for a​ loan,​ NOT credit repair advice .​
But wouldn’t it​ be worth it​ to​ postpone getting that house or​ that car if​ it​ would save you​ thousands,​ tens of​ thousands,​ or​ maybe even $150,​000.00 or​ more over the​ long haul?
If you’re thinking your bad credit history is​ something you’re just stuck with,​ or​ that it​ will take years to​ improve,​ you’re mistaken .​
It’s often possible to​ make major improvements in​ your credit rating in​ just a​ few months,​ and in​ some cases in​ as​ little as​ 30 days!
It’s not that difficult either .​
You basically have 2 options .​
You can hire a​ Credit Repair Agency or​ you​ can take the​ do it​ yourself approach .​
If you​ decide to​ hire an​ agency,​ you​ can easily find one in​ your phone book or​ online .​
Just look for credit repair .​
However,​ it​ won’t be cheap .​
Agencies usually charge from $2,​500 to​ $5,​000 or​ more to​ repair your credit .​
But that’s still a​ bargain compared to​ how much you’ll be saving in​ the​ long run.
But if​ you​ think only a​ professional agency can fix your credit,​ think again! in​ spite of​ their high fees,​ they won’t do anything for you​ that you​ can’t easily do for yourself .​
If you​ can write a​ few letters,​ address,​ stamp,​ and mail them you​ can repair your own credit .​
If you​ choose the​ do it​ yourself route (recommended) you​ can learn how by doing some online research .​
Unfortunately,​ along with all the​ good information you’ll find some misinformation as​ well .​
a​ better option is​ to​ find an​ authoritative book on​ credit repair and follow the​ advice therein .​
In conclusion,​ you​ should seriously consider postponing your search for a​ bad credit loan .​
First spend a​ couple of​ months improving your credit rating .​
Then you​ can abandon the​ search altogether,​ and begin looking for a​ GOOD credit loan!
(c) eBusiness Power

Bad Credit Loan Lets Cut Through The Hype





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