Second Chance Loans

| November 5, 2011

When a business loan is applied for the credit of the individual is paramount because the loan is unsecured (no collateral involved). If the credit of the borrower is good, the loan will be made, barring other circumstances. Second chance loans are made to individuals who are not in good financial condition and need money to get back on their feet.

Even though, this is difficult to obtain. They are sought by people who have had enormous medical bills, a rough divorce or other personal tragedies. If collateral is available such as a home with sufficient equity, the chances are improved of receiving one. In these harsh economic times a bank will prefer a home or other collateral before taking a risk on someone whose financial position is poor. Those that manage to get their loans will have to pay high interest rates, receive short-term loans only and the amount will be low. These loans should be paid back as quickly as possible, not unlike payday loans. These loans are not to be used for non-essential items, only for emergency situations. Borrowing through these loans is certainly not a long term solution to a bad economic situation.

Loans for those in financial need can carry extremely high interest rates, which have been know to reach into the three digits in interest. It is imperative to shop carefully online to find the lowest interest rates because they will vary greatly and the difference in percentage points of interest can be enormous. If this route is taken, all that is required is to be over 18 years of age and have a checking account.

Category: Finance

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