Personal Loans For People With Bad Credit

Question: Is there any one or business that offers personal loans for people with bad credit?

(Posted by: Chelsea on 2008-04-14 19:43:34)

Okay, I have a friend, that needs like $5, 000 to pay off some bills, before she gets in anymore debt. She makes about $1600 a month before taxes, doesn& #039;t have any kids or anything. I wish I could help her out, so thought I& #039;d come here to get some advice for her. Is there any business or website or anyone that loans out money to people with bad credit and does like a 12- 18- 24 months loans? She tried Prosper, applying for loans, but that didn& #039;t work and just worsened her credit rating. Like an I.O.U., promissory note or deduct the payments from paypal or bank account or something along those lines, so they know they& #039;re getting their money back. Any help will be greatly appreciated. Thanks!!!

Posted by: cspb on 2008-04-14, 19:54:40

The unfortunate problem is that she has bad credit so regardless of the situation she is already suspect not to pay back the money. The sad reality is that the consolidation of debt under one loan usually ends up freeing the person to accumulate more debt. Her debt is very small right now and I would recommend that she work out some financial priorities or seek assistance from consumer credit counseling who can deal with her creditors to work out good payment or put her on a budget she can live with and pay off her debt. As for online loans, there is another company she can try which is Facebook 's Lending Club . But I still stand by my original recommendation. Tell her that i wish her the best of luck.

Posted by: ontopofoldsmokie on 2008-04-14, 19:51:43

I know I will not get points for this but, she should find a way to make $5k without borrowing. She should get a second job. She could pay off $5k in very little time with a second income. If you talk to creditors and let them know when and what you can pay they will usually let you. You can not borrow you way out of debt.

Posted by: cashewmonkey on 2008-04-14, 19:58:03

Unfortunately, considering the fact that the current state of the economy is due to poor lending practices, it is unlikely any major company will be willing to lend any amount of money to someone without stellar credit. I think her best bet is to either borrow from a friend or family member, or find another source of income. Another option she has is something along the lines of credit counselling - organizations that will liaise between her and her debtors to arrange payments she can afford to pay them off. She will make 1 payment to the counsellors, who will then divide the money to the people she owes. This will have some significant repercussions on her credit rating, but as I said above, without a near perfect credit rating, she probably won 't approve for anything else.