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Short Term Bad Credit Loans - Choose Wisely

February 18, 2012 | Comments: 0 | Views: 152

Have you found yourself in a financial bind and are you unsure just how you are going to pay your bills. This is the same situation that so many people find themselves in these days, so rest assured, you are not a loan. Sometimes a short term bad credit loan can get you by in a pinch, but they should not be used as a long term financial solution. If you must use borrowing money to make ends meet, then I have put together a few options for you to consider.

A loan from a pawn shop is a good way to get money quickly without a whole lot of risk.

If you are unsure how pawn shops work, then I will cover them briefly. You basically find a pawn shop in your local neighborhood where you take an item of value, called collateral, and the broker lends you money based on the value of the item. They hold your collateral as a guarantee that you will pay the loan back as agreed. It's a very simple form of lending and is less risky for the lender and the borrower. The lender wins if you don't pay the loan back and you stand only to lose a possession if you can't pay it back for some reason.

The fact that you have bad credit tells me that you have had financial problems in the past and well as now. As I said you are not alone. Another way to get a loan if you have bad credit is to join a peer to peer lending network.

Lending Networks

Person to person or peer to peer lending networks are a relatively new financial option for those with good credit or bad credit. Here is basically how they work. Just as the name of them states, you are borrowing money from an individual, not a bank or institution. One point that makes them a good option for both borrowers and lenders is the fact that you will not be borrowing from just one person, but you will be borrowing from a group of people that have bid on your loan. They bid on your loan much like an auction website.

The interest rate that you will get depends on your credit worthiness and your reputation in the network. I would recommend borrowing small amounts to boost your reputation, and that will allow you to get better interest rates in the future from the network.

Some Constructive Advice

If you are faced with constantly falling short each month on your bills and expenses that damages your credit, then it is very clear that you have an income problem, not a credit problem. The credit problem is a symptom of your income problem. It is wise to focus on getting education that will help you increase your income. Please only use borrowing as a short term solution, or you will grow deeper in debt and end up in a vicious cycle.

Finding yourself in a financial bind can be frustrating and disheartening. If you need a bad credit loan, then you must choose wisely or you might find yourself damaging your credit even more. Visit and see decide for yourself if a short term loan is the best choice for your situation.

Source: EzineArticles
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