There are many ways to get a loan these days. If you have had credit problems, however, you may find it harder than you think to find a loan to buy that house or car that you need. If you cannot get a loan through the normal channels, you may need to investigate private party lenders to loan money with bad credit.
Private party lenders are an option for people who have bad credit and can't get a loan. But if you really need that loan, you might be willing to try an unconventional method. Enter, private party lenders to loan you the money you need even with your bad credit. You will certainly pay more interest, but it also may be your only option. Who uses these lenders, you may ask, and how does it work? Here are some answers to your questions.
Some people use private party lenders to loan money with bad credit to purchase a home. These private lenders may be the sellers of the home. Other possible sources include private party lenders found through a broker or possibly a relative who wishes to lend the money. Borrowers will typically pay at least two percent higher than the going rate, but closing costs may be significantly less.
Another reason to use private party lenders to loan money with bad credit is to get an auto loan. Again, your rate will be higher than if you used the dealer, but you are generally assured of securing the loan regardless of your credit history. You may only be able to finance the vehicle for up to 48 months instead of the 72 months that a dealership would offer.
Private party lenders to loan money with bad credit may not make you have a down payment on that spiffy new car. While this might seem like a good thing, it can end up costing you later on. It is better to try to put down at least twenty percent of the cost. This way, you don't end up owing more than the car is worth down the road. Fees for taxes, title, and registration will need to be paid out of pocket, so make sure you plan for this added expense.
Using private lenders may be some people's only option for getting the loan that they need. If at all possible, you should try to use a sub prime lender or another more regulated financing option, since it will usually be cheaper. Shop around before committing to any loan, and try to get your credit score up as high as possible. No matter if you choose a conventional lender or private party lenders to loan money with bad credit, make sure you know just exactly what you are getting yourself into before you sign on the dotted line.
Private party lenders to loan money with bad credit is an important topic as seen at http://www.officialcreditrepairtips.com Ann Born has written hundreds of credit repair articles. All rights are reserved. This article may not be reproduced in any way without including the Author's Bio.