Bad Credit Loans - Introduction
Since November of 2008 our team at Californialoanfind.com has been journalizing the plight of bad credit borrowers, and frankly, borrowers who have low FICO scores. We do not provide direct loans to bad credit applicants, so let's get that out in the open right now. There are generally three kinds of web sites that publish information for poor credit borrowers who are seeking a loan.
Three Kinds of Bad Credit Lending Web Sites
#1.) Web sites that publish information regarding bad credit financing, but are not direct lenders.
A a web site (like ours) that provides information on bad credit lending and borrowing, but does not directly lend money to customers. Sites like these are informational resources.
#2.) Web sites owned and operated by direct lenders who take advantage of applicants who temporarily have bad credit ratings, and charge high interest rates.
In this second case, a lender may be willing to lend you the money for a steep interest rate, and possibly compounding interest rates that balloon up without any warning at all. Applicants must tread carefully in these waters because there may be loan sharks waiting to take a big bite out of pocket book over time.
#3.) Web sites owned and operated by direct lenders who offer reasonable rates. They charge you a fair rate and they are transparent regarding their lending structures, APR, and your direct costs.
Your task as a borrower who has a damaged credit rating (or terrible to horrible credit) is to find a lender like the one described in this third example. They do exist, but they almost always insist on some form of collateral/security on the note.
Bad Credit Lending In Today's Economic Environment
Lenders who cater to borrowers who have so-called terrible credit ratings are not always "out to get you" - some will grant you a loan at a reasonable interest rate, with reasonable terms, and reasonable disclosures - as mentioned above, the task you have as a borrower is FINDING these lending institutions.
What we do here at CLF is provide our readers with information to understand the implications of having a high risk borrower status, practice calculating loans before applying, learn to budget, and avoid predatory lenders. As humans we can learn allot when we read about others who have experienced the same financial limitations that come with having a bad credit rating and repayment history. That is what CLF is all about - recording and publishing the plights of borrowers just like yourself, who have felt stuck, alone, and perhaps financially helpless at one time in the past. It make perfect sense that CLF was launched in lates 2008 during the biggest economic crash since the Great Depression of the 1930s.
Content at CLF On Bad Credit Borrowing and Lending
We
publish studies on the implications of a bad credit rating, the difficulties
high risk borrowers have getting approved, which banks do approve subprime
products, how much poor credit borrowers pay in interest, how
these borrowers are treated by loan officers, and how long it takes
to finally get approved. We usually publish why the borrower needs the
loan, why they have bad credit, and sometimes their personal financial
situations. It all depends on how much information the borrower is willing
to disclose.
We get these submissions from emails to our editors, or from follow-ups
with commentors. We encourage you to tell us about your financial situation
and the loan you may be trying to get. Getting it off your chest might
be a good thing for you!
High Risk Loan Calculations
Another thing we do at CLF is to feature loan calculations for each lending request, so we can show the reality of APR, length of term(s), payment frequencies, and of course the principal. These examples and case studies are usually detailed, but some are just straight to the point - just the basic form and math.