With bad credit, you could be thinking right about now that you’re just not going to be able to get that loan. You may not even be thinking that you’re going to be able to get a hard money loan. Wouldn’t that be something. Most likely, you have hard money loan options, but you need to know more about them as well as possible alternatives out there. What exactly do you know about hard money loans and modern installment loans for bad credit?
Maybe you’ve never had one of these loans before. It used to be that when it comes to hard money loans, most companies handled them pretty much the same way. However, that’s not really the case anymore. They have changed all kinds of things, and those changes can be attributed to certain factors. One factor is how states and the fed have decided to handle these companies and lending laws individually. The states have always handled these loans according to state laws, but there was much backlash in past years. That backlash has caused many changes.
Then you have more installment loan companies trying to cater to people with bad credit. Evidently, it is quite a big market opportunity, and loan companies want in. Some of these installment loan companies will have you making payments for a few short months, while others drag loans out for longer. Both options can be advantageous, depending on the specifics and your situation.
Would you rather pay monthly payments of 2500 dollars or bi-monthly payments of 4500 dollars? This is just a rough example of what you might be looking at, and of course it also depends on how much money you’re asking for. You might have to inquire with a few different hard money loan companies to find out your options and which type of loan is going to best serve your needs.
When looking at loan companies, be sure you pay attention to whether or not they are going to check your credit. There are advantages to finding a loan company that does this, but of course there are disadvantages, too. People often think about the most obvious disadvantage first, which is your credit report can take a hit, which really stinks if you don’t get approved. What if you applied with multiple companies that did business this way, and you still didn’t get a loan?
Some of the companies will check your credit without it affecting your score. That is ideal, and then you will also know if you’re likely to be approved. The applications that don’t affect your credit are typically even shorter so that you don’t have to waste time filling out an extensive app to see if you’re approved.
If the company pre approves you, then you will likely be approved and can peacefully finish the rest of the application process, including signing your loan documents. You will likely get a much better rate on a personal loan when you find a company that handles things like this. So keep an eye out for these types of loan companies so that you end up with the extra funds you need to get things done.