America is country that runs on credit. Unfortunately, many Americans have what is considered “bad credit.” There are a number of things that can have a negative impact on one’s credit score, such as a divorce, court-ordered judgements, mortgage problems, or even missed credit card payments. Previously, bad credit could hurt your chances of getting a loan, because lenders were not as likely to take a chance that they might not make their money back. However, many lenders are becoming more and more willing to take chances on those with bad credit, especially if the individual has something they can post as collateral, such as a house or car. Lenders call this a “secure loan.” Through this type of loan, individuals can borrow up to the amount of their collateral, and sometimes even up to 125% of this value.
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