Having bad credit can put a significant damper on getting the financing that we need. It seems that every day there’s some new marketing campaign boasting the promise of helping those with bad credit find the perfect solution. But are they really trying to help us or are they more interested in earning revenue from our misfortune? This article will provide you information about bad credit loans in Illinois and its alternatives.
Although some people might want to live like the Joneses, most of us just want to achieve a stable financial life that is enriching and empowering for our family. Fortunately, we can do our due diligence and prevent ourselves from falling into the traps of false promises and disappointing outcomes.
It is often said that knowledge is power, but learning how to use that power gives us true freedom in today’s economy. The truth of the matter is, there are plenty of people who do just fine when they understand how to navigate bad credit without turning to companies that offer big solutions and even bigger problems in the long run.
Bad Credit Sources: Not Everything That Glitters is Gold
There are numerous sources for getting a bad credit loans in Illinois. Anything from a payday loan to a high-interest home equity loan (HELOC), potential borrowers are often seeking these companies to pay off debts that have gotten out of control, or they simply need a quick-fix for expenses that are unaffordable at the moment. While payday loans are the worst-of-the-worst for anyone seeking financing, a HELOC or line of credit can be a quick way to reach for the money we need. But what’s the risk? A home is not something that should be treated like a piece of jewelry or a piece of tech that is taken to the nearest pawn shop. Before “hocking” the house that we’ve spent years to build up equity in, the decision to choose a bad credit loan in Illinois should be considered very carefully.
The major issue with choosing a HELOC from a company that “specializes” in bad credit loans is the amount of interest that is paid throughout the term of the contract. Most people rarely ever look at the amortization of the loan or the section that shows exactly how much interest will be paid throughout the contract. We’re usually more interested in the monthly payment or so desperate that we don’t even care. That, of course, is a huge mistake. It’s imperative to always fully understand the contract before it is signed, especially when it concerns our home.
Bad Credit Loan Requirements
Getting a bad credit loans in Illinois with less-than-perfect credit is usually an option for people who have a credit score that is 600 or less. Generally, the financial institution or company will require assets such as a home, savings, stocks, or even a 401k retirement account to qualify a candidate for the loan.
Some companies also typically ask a borrower to list the value of the items they have in the home, such as electronics, furniture, jewelry or computer equipment. Companies are taking a much higher risk and, therefore, the stakes are higher. They need to cover those risks apparent in case of the borrower failing to pay back the loan. They hint at the extreme potential of losing our home or everything that has been listed within the loan application.
Although most of us are pleased to receive an opportunity to pay back the loan responsibly, those who don’t are shocked to find out many years later that the assets listed in the application are being sought in a court case against them.
Common home equity loan poor credit complaints include:
- Misleading Offers
- Hidden Fees
- Billing Disputes
- Inapt Customer Service
- Abusive Collection Tactics
- Predatory Lending Practices
- Seeking Help for Poor Credit
Poor credit or a low credit score can be improved with small and consistent changes when handling our credit. It takes time, but in the meantime, there are credible companies that offer a home equity loan alternative and encourage homeowners to improve their credit. Also, there are reputable non-profit agencies that specialize in helping us learn how to manage our finances and credit better. We should seek those agencies and companies.
Quick tips for improving poor credit:
- Consistently pay on time
- Keep credit inquiries to a minimum
- Check credit report at least once a year
- Pay more than the minimum on credit cards
- Keep credit card balances low
- Use secured credit cards
- Supportive Solutions with High Standards
Bad credit loans alternative in Illinois
Skydan Equity Partners helps homeowners who have poor credit, bad credit, or no credit get the money they need for a wide variety of reasons. We are not a bank, and we consistently strive to help homeowners make the right financial decisions. Our distinct equity program offers solutions rather than more obstacles (like the ones a bank and it’s rigorous selection process would face you with).
With a home equity loan alternative from Skydan Equity Partners, homeowners never have to worry about needing a specific credit score. That’s because we do not use a credit report to qualify an applicant for any of our programs. A homeowner’s equity in the home is used for qualification. It’s as simple as that. We understand that financial difficulties can occur, and they often affect a person’s credit through no fault of their own.
Homeowners can gain access to up to $250,000 home equity in 30 days or less and extend monthly payments for up to two years. And with zero interest. The money can be used for tax payments, debt consolidation, home repairs, remodeling, or even bridging the gap in income during a financial crisis. Our unique buy-back option also allows the flexibility to sell the property above the agreed price and pocket the excess money. It’s, in essence an investment opportunity without all of the usual risks.
We’re completely transparent and, in fact, homeowners can find out how much they may qualify for before making a decision by simply using our homeowner’s calculator and answering a few basic questions. Our program options also help homeowners sidestep potential foreclosure and avoid having to file for bankruptcy.
It’s imperative at Skydan Equity Partners that we set an expectation of excellence with our programs so that homeowners feel confident with their decision. While we’re in business to accommodate our financial stakeholders like any other business, we also care about the community and want to see people succeed. Having poor or bad credit shouldn’t prevent that from happening.