If you do not qualify for a fixed rate loan because of your bad credit, you may be able to receive an adjustable rate loan. Many people prefer the fixed rate loan because of the stability. Over the life of a fixed rate loan, the interest rate does not change, giving the borrower knowledge that he will pay the same monthly amount from the beginning of the loan repayment to the end. An adjustable rate changes at the end of each adjustment period, which can last for a series of months, a year or up to five years. Though some borrowers feel that a changing interest rate is a risk, there are benefits to choosing this type of loan. An adjustable rate loan has low introductory rates and can actually save certain borrowers money. If you are buying a home and only planning to live there for five to seven years, an adjustable rate can actually do more for you than a fixed rate. Also, if interest rate indexes go down over time, you will reap the benefit of that drop, while borrowers with fixed rates will be stuck at with their higher rates. Relaxed qualifying criteria and low introductory rates make this loan beneficial for borrowers with bad credit and good credit alike.
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Having bad credit is no reason cancel out the possibility of finding a loan. Loan options have become diverse and lenders have programs for every kind of borrower. Even if you have filed for bankruptcy, you can still find a loan to suit your needs.
Bad credit does not have to stop you from reaching your goals. Apply online
today and you could qualify for many different types of loans:
- Debt Consolidation loans
- Adjustable rate loans
- FHA loans
- VA loans
- Secured loans