Bad debt is sometimes unavoidable. You could go broke because of a sudden illness, a divorce, losing your job or simply put, bad luck. Being in a bad financial situation is not a long-lasting situation. You can always get a new high-paying job, have a side business for additional income or simply get back on track with your finances.
Getting a loan is not that easy if you have a bad debt history. To be eligible for mortgage loans and finance loans, edges and lenders will require you to have a good credit history. The better your credit history is, the higher the amount of loan you can possibly acquire. Better interest rates are also given to clients with good credit scores. They are considered as low-risk clients.
Bad Credit Loans
Fortunately, securing a mortgage loan or finance loan is nevertheless possible already with bad credit. These are called bad debt loans. Secured home loans are secured loans with your character as your collateral while a bad credit car loan is a kind of financial loan with your means as your collateral for the loan.
Secured mortgages and finances are offered by specialist lenders that are willing to see beyond the blemishes in your credit file. Mortgage and finance specialists can also help connect you with the right edges and brokers that could help you obtain a mortgage loan or a bad credit car loan.
Two Secured Loans at the Same Time
So, you have found a mortgage specialist and have managed to obtain a bad debt home loan. Can you get a secured car loan afterward? Will an existing secured mortgage loan affect your chances of getting a bad credit car loan?
Yes, it is possible to have a secured mortgage and finance loan at the same time. A stain on your credit caused by a life event is something specialist lenders understand. The character of your poor credit and the efforts that you are doing to fix your bad credit file counts the most for edges and lenders. This also helps you get your credit back on track.
The chances of getting a second secured loan, say a bad credit car loan after getting approved for a bad credit mortgage loan is possible. Fixing your bad financial rating is the best way to get a second bad credit loan. Paying off your debts and religiously paying for your loans, including your first bad credit loan creates a good impression for edges and lenders.
Going by the black marks and the noticeable defaults on your credit file, one by one does not only build your credibility as a borrower. It truly builds your credit. The more you get rid of these, the faster you can get them remove from your credit file.
Both types of loans are also secured loans. Failure to pay gives edges and lenders seize the collateral at stake – your home and your car. Getting a mortgage or finance specialist also helps in making a second secured loan possible. Experts like them can help you seal better interest rates and payment deals that will work for your budget – both for a mortgage and a finance loan.