Category: Money

Hey Chicago – Don’t Tap That Retirement Account Just Yet

The need to make a large purchase happens many times throughout our lives. Hopefully more of these purchase needs are optional as opposed to required. Loans are the route chosen to make most large purchases, since cash is often limited. If you have bad credit, then making large purchases becomes even more challenging. If you don’t have good credit, it’s hard to access home equity loans or credit cards. At times like these you may consider withdrawing money from your 401k retirement fund. However, this should be considered as a last resort for accessing needed funds. Early withdrawal penalties and possible taxes can eat away at the money you get. Use personal loans instead if you only need money for a brief period of time. It is becoming more commonplace for lenders to help bad credit borrowers with loans. Searching the Internet will provide you with several resources to compare (i.e. borrow money with bad credit). However, you should repay personal loans quickly, as they have high interest rates. Failure to repay time in a timely manner can increase interest costs on the loan. If timely repayment is not an option, you contemplate prolonging unnecessary purchases. Hardship loans may be available for your 401k – consult with the program administrator.

Utilize Bad Credit Personal Loans Only for Short-Term Financial Help

Unexpected financial needs arise for most people all the time, creating the need for immediate cash. For people with bad credit, choices can be limited regarding available options for raising needed cash. There are types of loans that such people can turn to (i.e. problem credit unsecured loans), to fill the short-term need for funds. Lenders of these types of loans have less requirements regarding overall credit standing. Financing rates are usually higher for financed amounts to compensate for the lender’s increased risk. Since interest costs are higher on such loans, one needs to seriously think about how long the money will be needed. With interest rates on such loans likely to be in the double digit range, it is best to repay them as quickly as possible. If you want to find lenders that offer these types of loans, you can perform an Internet search (i.e. ‘bad credit short term loans‘). If you think that you cannot repay the loan in a timely manner, it may be best to prolong any purchases that are not of an emergency nature. For those with few financial options, getting a bad credit personal loan and repaying it quickly can help for those in a short-term financial bind.

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