Just like with anything else in life, there are two ways to find online loans for bad credit: the dumb way and the smart way. The dumb way, unfortunately, is also the most common way. Which selection method is this? Simple-listening to word of mouth. Word of mouth is often very hard to resist because we often trust products and services that people we know and trust have tried out or recommend. The reason why this way of selecting loans for people with bad credit is not the smartest way to select this particular type of loan is the fact that every person’s situation is different. In many cases, the situations they are facing might be different from yours and this difference can impact your experience with a particular loan from a particular provider.
Also, people with no first-hand experience often make recommendations for loans for people with bad credit just to ‘help out.’ This type of referral is almost worthless-and potentially dangerous to your financial health-because the recommendation is often made with no analysis or no sound reasoning behind it. This is why it is crucial that you find loans for people with bad credit on your own. Do it the smart way. There are three parts to the selection process.
Compare rates online
Thanks to the internet, finding the publicly posted rates of many loans for people with bad credit are easy to find. Think of it this way, companies offering loans for people with bad credit don’t have any incentive to keep their rates hidden or available only upon invitation or request because this puts them at a serious competitive disadvantage compared to companies that are open regarding this information. Use this fact to your advantage. Your first move is to get all the search results for keyword searches for ‘bad credit loans’ or ‘loans for people with bad credit’ and sort them by interest rates. You don’t even have to spend too much time on their sites to find the rates. Just get the rates, copy and paste them to a text document, and move on to the next search result. The great thing about modern Web browsers is you can open results in tabs. Click through the tabs to get the information. Next, filter out the higher rates. You will quickly see what the ‘average’ rates are. Stick to these and get rid of offers with higher rates.
Use review sites and blog posts to filter companies
The next step in the smart way to find the best loans for people with bad credit is to zero in on the companies behind these loan offerings. While you shouldn’t instinctively believe everything you read online, you need to also use common sense. The sad reality is that a lot of competitors and clueless people make all sorts of baseless claims online. Anyone can write these posts. Anyone can make these types of reviews. However, what matters most is the overall trend of the reviews and posts. If the overall trend is neutral or positive, keep the offer on your short list. If, on the other hand, you see a generally negative pattern, you need to get the offer off your list. After filtering your list based on general pattern, you need to take the next stage of the company filtration process and filter based on content. Look for indications that the positive or negative reviews are fake. Do they look like they were written by the same person or persons? Do they look like they were written within a very short period of time? Are there fundamental contradictions in the details they provide or the claims they make?
Sift through the terms
One of the dumbest ways to select loans for people with bad credit is to stop at the stage above. If you do that, you might be setting yourself up for a painful loan repayment process. You see, there might be many hidden charges or ‘exploding’ interest rates in the terms of the loan. Be very careful about the terms. Sift through all the details. Notice any conditions that might lead to you being charged more money when you least expect it-especially if you miss a payment.