During these recessionary times, many consumers have been driven close to the gates of financial disaster. Jobs have been lost and re-employment often means nothing but under-employment. Financial obligations continue to pile up even though no cash of any significance is coming in. Auto loans, student loans, mortgages, and credit cards loom ominously on the financial horizon. Indeed, many monthly payments may have already been missed.
Where to Turn
Under this sort of duress, many traditional lenders such as banks and credit unions are not likely to want to be involved in any financial rescue operations. Where does a person in these dire straits turn? Especially if they have horrible credit and no collateral with any equity. All is not lost. Lenders are out there who are willing to offer financial assistance to cash-strapped borrowers even with awful credit.
Banks and credit unions are reluctant to offer loans to people who have financial nightmares as well as terrible credit scores. Non-traditional lenders are out there. They can be found online or sometimes even in newspaper classified ads. The consumer must be careful, though. Many lenders are available and this requires some prudent shopping.
Protect Yourself by Using the BBB
Once you have found a lender whose interest rates and repayment terms you can live with, go to the Better Business Bureau and do a query on that lender. The process becomes akin to looking out for that rotten apple in the barrel. In fact, while you peruse the files, you may get some leads on lenders who are better than the one you have chosen.
Protect Yourself by Using Internet Financial Forums
Another way to check on a potential lender is to approach internet forums focused on financial topics. You could gain feedback from the forum members and get a good measure of the reliability and credibility of many non-traditional lenders. You may find feedback regarding a lender who may have committed violations or misrepresentations according to the Federal Trade Commission (FTC).
Bad Lenders Can Lead to Nightmares
Certainly stay away from lenders who have poor ratings and bad customer feedback even if they do offer low rates and easy terms. Sometimes consumers have given the lender valuable personal information and even have sent in a payment or two. Then, the original creditors show up and ask about the money. Finding that they have never been paid and that the loan you have taken just does not exist, is certainly no way to restart your financial life. Plus, your identity has probably been stolen.
Avail Yourself of a Little Extra Help
Even though a lender may seem sympathetic, they may refuse to help you. In light of that, you may want to seek out a cosigner you trust and who trusts you. This could prove helpful, especially if you are presently unemployed or have no collateral to offer the lender. The cosigner should have a better credit record than yourself and be employed. He or she should also be aware that they are responsible for the loan should you default for any reason.
Your Financial Future
If you have terrible credit and no collateral and are able to land a substantial loan, consider it a gift. It can help you out of your dire financial straits and open the way to a better financial future. Just make sure you meet your obligation. Also, while you have some financial breathing time, figure out a way so that you will never have to face this awful circumstance again.