High Risk Personal Loan Institutions
High risk personal loan institutions specialize in lending money to those borrowers that are considered higher risk because of a bad credit history or no credit history. A high risk personal loan institution may offer a variety of secured lending options as well as lower balance signature loans. The most common type of loans these lending institutions will offer are home equity loans. Home equity loans use a lien on property owned as a collateral pledge for repayment on the debt, so lenders are willing to overlook past financial problems since failure to repay the debt will lead to the foreclosure of the property.
Many times, these lenders do not even require credit checks or income verification for approval of these loans. The equity in the home must simply be higher than the amount requested. High risk personal loan institutions may also offer the borrower a home equity line of credit. This line of credit works much the same way a credit card does in that interest is only paid on the money used, and a predetermined maximum limit is set. There is no regular repayment schedule, and as the debt is paid off, the maximum limit allows more spending freedom.
Some lenders may also offer what is known as a payday loan. These loans typically charge fees instead of interest rates. These fees however can encompass a range of lending balances and either rise with a higher balance or become lowered with a lower balance. These payday lending fees are charged uniformly to every other borrower seeking the debt from the high risk personal loan institution. These institutions offer a host of other creative financing options for item specific loans. Seeking out the best available borrowing option for each situation is advised.
Borrowers interested in finding out more information about a high risk personal loan institution can flip through the phone book or do an Internet keyword search. There are many institutions online willing to qualify a borrower for a finance package. A Christian borrower should be aware that any debt applied for and received is a promise to repay. That promise to repay is not only to the lender, but to God. The Bible says in Ecclesiastes 5:4-5 "When thou vowest a vow unto God, defer not to pay it; for He hath no pleasure in fools: pay that which thou has vowed". If a Christian is unsure whether or not they will be able to repay, they may want to consider the amount they are requesting or the reason for the debt request.