When the economy hits a downward turn, there are two things that you can count on: people with less than perfect credit will still need loans and there will be plenty of places that offer them.  But just because it is readily available, is it the right way to go?

The fact is that there are good points and bad points associated with one of these lodo the mathans.  But before you decide, you have to weigh your options and see if it is a good fit for your particular situation.

First, the good points.  These loans are convenient.  The process is so short that you can usually find out if you are approved within an hour or so.  If accepted, the money is typically available within a couple of days, or even the same day.

Another good reason that this might be the right loan for you is right there in the name.   These loans are specifically designed for people who do not have perfect credit.  They understand that you will not be able to go the traditional route to get money.

If you do take out one of these loans it can be a good way to get started rebuilding your credit.  Without this new piece of credit being extended to you, your credit score will be at the mercy of using the only other recent information on it, which stands a good chance of not being very favorable.  At least it shows that you are working to bring things back.

Now, the cons, which there is really only one.  These loans are available for a reason: they cost a lot more.  Having this type of opportunity available to you is going to cost you.  Just how much depends on your individual situation.  Many are okay with paying the added expense because it is the only thing available right then.  You just have to decide if it is worth the extra cost.

 You have to consider three aspects of these loans: the processing fees, the interest rate and pre-payment penalties, (Auto Repair Lending does not charge a pre-payment penalty) or late fees.  All of these have to be factored in.  Make sure that you read and understand everything.Lastly, interest rates are just a monthly number until you count up the total cost.  Have them run the total that you will be paying in interest.  It might make the decision for you. This is a great option if you understand the best way to utilize this loan is to pay it off quickly. Do not use the full term of your loan if you can manage that.  If you have a $75.00 payment every month, add as much to that each month that you can manage.  You will get rid of it faster, it will have served its purpose to help you out in a emergency- and finally, you are on your way to improving your credit so next time around your options will be much better.


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