Be very careful. With today's tight credit market, legitimate lenders are being very cautious about making unsecured loans to borrowers with much better credit profiles than yours.
The danger is that most who are offering unsecured loans to people with "bad credit" are more likely to be scams, preying upon those who are desperate and can't obtain loans from legitimate lenders.
Be very VERY cautious about the terms and conditions of any loans that you are offered. You may find some lenders willing to loan you money, but at interest rates (or with "default" provisions) that will lead you straight into bankruptcy court, faster than you even know what happened.
In today's credit market - in all honesty - your best source of a loan is probably a family member WHO CAN AFFORD IT (not somebody who has to borrow it themself, in order to lend it to you). Offer to do this as a strictly business proposition: write up the terms of the loan and the repayment period, make up a payment coupon book, offer to pay your family member a reasonable interest rate (say, 5% APR ... its better than what they would be getting from their bank if they just kept the money in a savings account) and then be absolutely meticulous about making those payments on time to the family member who lent you the money.
There is a risk of course -- terrible family disputes have grown out of loans-gone-bad between family members. But if you do it strictly as a business deal, and are ABSOUTELY SURE that you will be able to repay it as agreed, and absolutely meticulous about doing so, its probably less of a risk than it would be to borrow this money from a loan shark (which is basically the only kind of business that would probably offer you a loan at this point).
One thing you really should ask yourself first: can you REALLY afford to take on another debt? With 2 items in collections and late payments on other loans, how will you be able to afford even more debt?
Of course there are some circumstances where this makes sense: for example, if you just obtained a much higher paying job and have carefully reviewed your budget and are SURE you can afford the payments -- or if you are attempting to consolidate several existing debts, perhaps with a loan at a lower interest rate, etc, etc.
But it is always wise to keep this in mind: You can't borrow your way out of debt.
If you are trying to borrow money in order to put off dealing with the fact that you have more debt than you can actually repay -- maybe you should rethink this strategy.
· 1 decade ago