Having bad scores means that as a borrower at some point in your history you failed to make good on a financial obligation. Over the long period of repayment on most lenders, things can happen, bills get misplaced, jobs lost, and unfortunately these missteps can follow you for a long time. Being laid off from a job, recovering from a divorce, huge credit card debts, and or a past lack of discipline in paying bills need not make you an long term loan outcast for the rest of your life.
Bottom line? Your bad FICO scores will make qualifying for longer loans more cumbersome than it otherwise would be, that is unavoidable, as there will be companies who will refuse you lend you money because of your bad financial history, they will assume you do not have the means to pay back the money after the agreed upon time and that you cannot be trusted to manage a long repayment period effectively.
The good news is...
There are lenders that offer long term loans for bad credit, offering flexible access to cash with extended terms. These specialized lenders have developed programs that trust you to manage a longer, more extended repayment period.
All bad credit lending companies ask a higher interest rate than you would pay with a good credit score, that is the trade off. In addition lenders commonly requires some form of collateral in exchange for the money lent, but not all offers recuired security and there are a select few lenders offering unsecured long term personal loans with repayment terms which can be extended for years if need be.
"Better loan terms can slash your monthly payments overnight..."
Check our our recommended long term financing offers that provide repayment extension options and up to 3-5 year term to start.
The trick with bad credit loans is knowing which lenders work with people and of these, which extended financing options.
Another consideration is that your past might not be as bad as you think, and the older the negative items on your report are the better your chances of landing financing will be. So unless your need is urgent or for a short term emergency, then it is recommended to explore all your traditional financing options and thoroughly review the long term loans advantages and disadvantages.
An additional consideration is that there still exist credit unions and bankers that your relationship can sway whether or not they approve you. Though most big corporations have made this laregely a thing of the past, a good relationship with the right bank can mean getting approved for personal loan interest rates that would otherwise not be possible.
The lender may be more merciful and understanding if they know you, the history of your finances, and the explanation as to what caused your having low scores.
Buying More Time For Your Loan
Long Term Financing Options
If you have explored all your better options for borrowing, then read on to find out what lending is available online...
If you are in emergency need of money fast, there is no option more flexible, more fast, putting cold hard cash in your pocket quicker, than a payday loan. They accept low credit scores - check, they fund fast - check, they offer long term repayment options - hmm, not so sure on that one. The problem with most payday loans like this is that they require repayment to begin starting as soon as your next paycheck - but we need more time than short term loans can provide, right?
The solution to this problem was created by a select few personal loan companies that developed longer repayment lending options for people with a bad financial past. Providing the hassle free, easy qualification standards of a payday loan coupled with an extended loan repayment schedule, it is an amazingly flexible borrowing option.
Secured vs. Unsecured Lending
Your average bad credit loan, short or long term, will be either secured or unsecured. Secured loans are loans which require collateral, and it is accepted in the form of entire real properties, electronic appliances, vehicles, or other valuables depending on the financial institution and also depending on the amount that is to be borrowed.
The good thing about secured lending is there is assumed, like a concrete promise on the part of the borrower, that he or she will pay the money back in time because of the security pledge; hence the word secured. Security increases the chance of being approved and will generally allow for longer term loans.
However, if not paid on time, the security you pledged is lost. Who wants that? Hence people usually much prefer long-term financing money that is unsecured.
An unsecured loan is borrowing based on your your FICO score, and your honor. In stark contrast to the secured financing, no collateral is needed for this type of borrowing to be approved. However, having collateral would increase the likelihood of getting a longer personal loan approved, fact, it is not necessary.
Getting a flexible unsecured option is much harder, but our recommended long term loan offers excel for people who need easy qualification standards and extended repayment options. Best of both worlds!
With excellent credit you can get approved for improved personal loan interest rates and for as much as $25,000, depending on the company, your history and income, although the average amount which you would be able to borrow is around $5,000.
Borrowing with bad scores reduces how much cash you can get significantly and the longest loans will only approve up to $2500 based on how much money you make and your ability to repay.
With the internet you do not even have to meet with the direct lender to secure financing, as the forms can be completed reclining in your favorite chair with a bowl of snacks sitting next to the keyboard.
Disadvantages of Long Term Borrowing
The negatives of long term lending have much to do with the fundamentals of managing your personal finances. Long term financing you cannot afford is as bad as any short term loan you cannot afford. Manage your repayment schedule wisely and make sure not to borrow more money than you need.
We help thousands of people secure financing each month, but don't take our word for it.
Be sure to do your homework and compare the rate quotes of the lenders we recommend. Crunch the numbers, and make sure the offer you apply for is best suited for your needs.