Tenants, non-homeowners or tenants can get poor credit loans by just providing collateral. Homeowners too can apply for these loans without involving any collateral. However, the interest rate shall be slightly higher. Just an amount up to which you’re allowed to return the advance is approved.
Tenants who have a bad credit score can qualify for this loan without any hassle. They must have a fixed source of income and must be earning a steady monthly paycheck. You can inquire from your bank or other financial institutions about this type of financing. Since, poor credit loans are considered unsecured in nature, you cannot pledge any valuable asset as collateral to procure such loans. So, if you are planning to use this loan to clear your unpaid credit card bills or some other urgent bill then you may have to compromise on your personal assets.
Unpaid credit card bills, medical bills or old utility bills can be considered as the type of debts that do not require collateral. So if you are planning to consolidate all your debts of other category then you may be eligible for poor credit loans. This type of loan helps you consolidate all your bills into one single payment. It will take care of all your debts and it will make your monthly payment easier. Even if you have a low debt to income ratio, you can still avail of this loan scheme.