Loan With Bad Credit

Through Peer to Peer Organizations

 

Today, in the credit industry the Peer to Peer remains the fastest growing credit organizations and most of them operate online removing the need to be physically present. Members of the Peer to Peer organizations often make funds available to other members of the group who have financial need.

Often time loan is provided to members in need at an interest by various members of the group who make contributions to meet the required amount the borrower is in need of. Members of the group who are to make the fund available usually check the credit profile of the borrower before reaching a decision to give the loan. As a borrower with a bad credit you could still be given the loan by members but at a high-interest rate.

Through the Sub-Prime Mortgage

 

The Sub-Prime mortgage is a kind of loan that is given by lending institutions to a prospective borrower who has low credit ratings.

How the credit profile of the borrower is would be the yardstick to determine how high the interest on the loan would be. Usually, because of the risk involved in giving out this type of loan, they generally attract a higher interest rate than the normal loan granted by lending institutions.

Another major issue with the Sub-Prime loan is the penalty that you will pay if you determine to retire the loan ahead of the set date of maturity.