Question: I recently had a job transfer that caused about a two week period where I was not making any money. Because I did not have any savings and was afraid I would not get the job back, I did not pay my mortgage for the last two months. Now I’m thinking because of this my credit score will take a hit and i cannot qualify for any financing. My question to you is, “How to get a personal loan with bad credit to pay mortgage?”
Answer: Since you have already missed two mortgage payments your credit score has probably already taken a hit. As you may already know, any late payments on a debt obligation is going to make it very difficult to secure financing from a lending institution. However, there is one type of guaranteed personal loan that is specialized for consumers like you who do not have the best of credit, or sometimes even no credit at all.
This type of bad credit personal loan is usually referred to as a “payday loan” or a “cash advance loan.” But it is important to be aware that this type of funding will not be ideal for everyone. First of all, payday loans come with an extraordinarily high interest rate. To go along with the extremely high rates you will be required to pay this loan back by the time your next pay period comes around, usually only one to four weeks.
However, despite these disadvantages one good thing about them is that there is no requirements on how this money is to be spent. This money can be used to help pay your monthly mortgage payments, fix your car, child care expenses, food for family, etc. Which is perfect since you are just needing a few hundred extra bucks to catch up. But remember not to take this loan for granted as it will have to be repaid in full along with interest) by the time you receive your next paycheck.
Please only use this loan as a last resort after you have exhausted all other options.
Another problem that you may potentially face when applying for this loan is that some lenders may require you to have a co-signer to back the funding (which is very rare and will depend on the lender’s specific requirements). While this may not seem like guaranteed funding, this is just another way for the lender to minimize the risk of funding the loan.
Having poor credit is a major red flag when applying for financing, even if you have a good source of income and can easily manage the payments. If your past credit records show that you have not been reliable to repay your debts, no lender is going to ignore that fact. Remember negative marks on your credit report can remain there for up to seven years, or ten years if you filed for bankruptcy.
But for the average payday loan lender the application process should be very simple and not take more than one hour to get approved. These companies will not even pull your credit report since most consumers looking to obtain payday funding have poor credit or none at all. One thing all of these payday loan companies are required to do is verify the borrower is at least 18 years old.
The amount of funds you will be allowed to borrower from a payday loan will depend upon your monthly income and how much the lender will allow to be borrowed. Generally, most of these lenders will not lend more than $250-$1000.
Again please be very wary when deciding whether or not you want to take on this obligation. Only do so if you know for a fact you will be able to repay the loan in fully by your next paycheck. If you take on a payday loan and cannot pay it back on time, be prepared to take on a significant amount of fees that can possibly double or even triple the amount borrowed.