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Bad credit loans and its types

by anonymous

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Bad credit or poor credit loans are not only the aftermath of bankruptcy or insolvency incidence though it is one of the reason ,but there are many credit default reasons which affects your credit score and without your knowledge you may find one morning that you were loan approval got rejected adhesive with the news of your low credit score. But this is not an end, despite your low credit score you can still apply for bad credit loans. There were handful of sources financing for bad credit but now the numbers of lenders for bad credit has increased manifold times in recent times. The common types of sources we approach when we meet bad credit situation are: 1. Family 2. Friends 3. Employer They are near to us and these falls in our first priority lists while asking for loans. But it is the harsh truth that they may be undergoing bad financial situation and so the reason of saying no to offer you further credit. Then the last resort is the private lenders with prime business of offering bad credit loans . These lenders are nowadays available online with varied loan quotes. The basic types of loans are: 1. Personal Bad credit loans 2. Mortgage or unsecured loans or home loans with bad credit 3. Bad credit Car loan 4. Debt consolidation loans 5. Pay day loans 6. Fast cash or emergency loans Bad credit personal loans is again of two types: 1. Guaranteed loan which is backed with the legal assurance by a third party to the loan to honor the debt in case of default by the original borrower; The guarantor can be anybody from the family or friends of the borrower or a public body or institution. 2. Non guaranteed loan for those with no backend support and the whole responsibility of loan payment solely lies on the shoulder of the borrower. Another category of personal loan is secured and unsecured personal loan where the former is backed by security of physical assets pledged with the loan whereas the latter is not having any protection of secured asset. Bad credit mortgaged loans or housing loan is similar to simple housing loan with the only difference of paying much higher installment almost double of the kind of federal mortgage loans. Bad credit car loans are high interest rate carrying auto loans specifically for buying car with even those having bad credit. Debt consolidation loans are available for exchange of multiple loans with varied high rate of interest with a single loan carrying single rate of interest. Pay day loan are of its new kind with fastest approval speed of within a day and disbursement of loan in the next pay day. Emergency loans or fast cash loans are specially designed to provide cash assistance to those who have acute financial emergency or contingency.

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