Finding High Risk Personal Loan Lenders: 5 Tips

A high risk personal loan is extended to a person with poor credit who would otherwise be ineligible for a loan. If you have an emergency need for funds and are not creditworthy to most lenders, this may be an option. Likewise, if you need to pay off an existing debt load quickly, you can consolidate that debt into one monthly payment through a high risk personal loan. You will face high rates and high fees. However, if you succeed in paying off the loan, you will rebuild your credit faster than by other methods. Not all lenders are willing to take this risk. To locate a high risk loan provider, consider the following tips.

Tip #1. Ask your bank or current lender. There is a chance a financial services team you already work with can extend high risk loans. If not, it is not uncommon for a bank to have recommendations for lenders in the area that may extend this option. Only take this step if your bank or current lender knows of your financial situation. Otherwise, you may be opening yourself to questions and concerns which you do not want to raise.

Tip #2. Ask a lawyer. If you have dealt with a lawyer in a bankruptcy or debt repayment case, the lawyer may have recommendations. Even if you have a personal friend who is an attorney, he or she may know of lenders in your area who are trusted. It is common for lawyers to be involved in the negotiations involving debt settlement. Use this knowledge to your advantage.

Tip #3. Ask your employer. It may be difficult to broach the topic of financial pressures with your employer. However, employers do offer opportunities for you to receive cash when you need it. If you have emergency medical payments, for example, you may be able to borrow from your 401(k) by submitting a simple application. Keep in mind: making a habit of this type of borrowing can have a detrimental effect on your financial future. There are some circumstances that do merit this action, though, so consider this option if it looks like it is absolutely necessary.

Tip #4. Look online. There are thousands of high risk personal lenders online. Most of them promise cash delivered quickly with very few hoops to jump through. Many of these lenders are credible, stable institutions. Others are unstable, misleading or outright scams. Before you do business online, make sure you know exactly what legal entity you are contracting with. This will mean locating a physical address, speaking to someone either in person or over the phone and checking with the reporting agencies to see how the company fares in customer satisfaction and financial solvency.

When you need money fast, it is tempting to jump into a situation with a high risk lender. High risk personal loans put you in a vulnerable position financially and personally. Do not take the consideration lightly. Know exactly what you are getting into and the potential consequences you face. The advantages will often outweigh the risks, but you must do the analysis to ensure this is the case.

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