Digital News Report – While consumers are less in debt according to a recent Federal Reserve report saying consumer credit decreased of 3 ¼ percent annual rate for the second quarter, it could mean getting an unsecured loan could be more difficult. The same report said that revolving credit decreased at 9 ½ percent annual rate while the non-revolving credit was approximately the same. In the month of June 2010, consumer credit decreased at ¾ percent annual rate. Even though lending has shrunk, financial institutions are still lending money. The question that many may have is can you get still get a loan with bad credit?
This reduction in credit available to consumers could be because consumers are paying off their debt, but also credit companies are reducing the amount of financing that they are offering to them. The shrinking available credit could make it more difficult for those that are seeking a loan with bad credit, but it is not impossible.
A bad credit lender may be the place to search out for getting a bad credit loan. The reason why is these companies specialize in high risk lending and are more willing to loan to a person with a bad credit history. The downfall to getting a bad credit loan is you will very likely pay a higher interest rate for the financing. So if you are able to improve your credit rating, it would be a good idea because you would save money on interest.
Bad credit loans can help with personal loans, consolidating credit card debt, financing for a new car loan, and more. There are lenders that specialize in financing bad credit secured loans for purchasing a home or a car, while others may offer personal loans.
By: Victoria Brown