It happens to a surprisingly large number of people; they miss payments, they have debts that go into collection, they damage their credit scores, giving them a bad credit rating. Interestingly, nothing seems to happen, up until they need to buy something on credit, be it an emergency or a life changing event.
Don't let bad credit keep you from getting your life in order. Bad credit can be repaired, and one of the tools that can be used to do this is a bad credit unsecured loan.
Now, let's characterize a bad credit loan; there are two types. The first is a secured or collateralized loan; companies like Providian specialize in this type loan and credit card -- you send them a check for whatever the limit of the card will be, they issue you a card, you use it and pay the bills on time to rebuild your credit rating.
This is fine if you have time to do this, and it's worth it to do it no matter what you do with your bad credit rating. A common alternative is a home equity loan or a loan taken out on your vehicle. These last options are dangerous, because if you default on the loan, you can -- and most likely will -- lose your home or car.
If you don't have the cash on hand to set up a secured card, and don't want to risk your home or car, or don't own your home, the next option is an unsecured personal loan. There are many vendors to choose from for this, ranging from your community bank -- particularly if you've held an account there for a while -- or local credit union, to outfits online that specialize in unsecured lines of credit.
Now, unsecured loans are going to have a higher interest rate than what you'd get from a secured loan, and it'll be higher still depending on how bad your credit rating actually is. You may get turned down a lot, and may be tempted to go to a payday loan outlet. The immediate answer is "don't". It's worth a lot of your time and effort to hunt down the lowest interest rate you qualify for, and to pay those loans off religiously and forthrightly.
Clawing your way out of debt is a reasonable goal, and a bad credit unsecured loan, handled responsibly, can be the first ledge you climb over on your way to financial freedom.
Paul Sarwana offers bad credit unsecured loan information to help debtors build confidence in improving their financial situation. He runs an informational website that provides additional tips on finding bad credit lenders. Get more bad credit unsecured loan information at
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