How can I get a High Risk Personal Loan?
If you're looking for a high risk personal loan, chances are you are currently stuggling with less than perfect credit. While getting approved for a loan can be more difficult when you're credit is poor, many lenders offer ways for people with bad credit to get approved.
There are two types of personal loans: Secured and Unsecured. With a secured personal loan, you must back the loan up with some form of property in the way of collateral. This can be a house, car, boat, or anything valuable enough to cover the amount you are looking to borrow. You accept all the risk with a secured loan. If you stop making payments or default on the loan, the bank or lending institution can and will sieze your collateral.
With unsecured loans, the lender accepts most of the risk as they must depend on the borrower to repay the loan. If the borrower fails to pay or misses a number of montly payments, the lenders only option is to get a court to demand repayment. Therefore, having good a credit record and history is usually a prerequisite for getting these types of loans.
High Risk Personal Loans are unsecured loans that are issued to people with bad or less than perfect credit. There are many lenders that specialize in lending to people struggling with past credit problems, and many will take into consideration far more than your credit rating. If you have steady employment, make enough income to cover the amount you are hoping to borrow, and your recent credit history is good (ie. you're currently paying all your bills and taking care of other financial obligations), then chances are you can find a lender to issue you a high risk personal loan.
The catch, and it's a big one, is that the interest rate on any high risk personal loan is likely to be extremely high. This will increase your monthly payment and decrease the total amount you will be able to borrow. In many cases, the interest rate can be so high that your paying as much or more in interest every month as you are on the actual loan.