Guaranteed Bad Credit Personal Insurance – Your Two Best Options

Bad credit can be devastating, especially if you are in need of a bad credit insurance. In today’s faltering economy, many people suffer from poor credit after job losses and layoffs, and fewer hours being given to them by employers trying to cut costs. Or perhaps you became ill or injured, and found yourself out of work due to frequent absenteeism.

Whatever is causing your bad credit situation, you will undoubtedly, like the rest of us, may need a insurance from time to time. There are two better options for those with bad credit – a secured personal insurance or a bad credit secured personal insurance.

Guaranteed Personal Insurance

Secured personal insurances are short-term insurances that allow you to borrow up to $10,000 and repay the lender in monthly payments. Most secured personal insurances are written for terms ranging from 12 months to five years, depending on the amount you borrow and other circumstances. To be the recipient of a secured personal insurance, you will need a collateral pledge to your lender.

The collateral can be in the form of your home, a late model car, or other property worth more than the amount you wish to borrow. The interest on secured personal insurances will accrue on the principal amount you borrow, which necessitates that you only borrow the amount of money you really need to avoid paying additional interest costs.

Guaranteed bad credit insurance

Another option that is very popular among those with distressed credit scores is a secured bad credit insurance. The secured weak credit insurance is the easiest insurance in the market to get. Almost everyone can qualify for a poor credit insurance regardless of previous credit history, as 99.99% of all applicants are approved under most circumstances. It may also be known as a payday insurance, cash advance insurance, or simply cash advance.

To receive it, you will write a post-dated check for the amount you wish to borrow. The lender will hold the check until a specified period of time has passed, which usually coincides with the next specified date for payment. When that date is up, you simply go back to the payday lender to retrieve your check and pay the money you owe, or do nothing and the lender will deposit the check into your account for payment.

There is no credit check required for a payday insurance, the only requirements to get the money you need is to have an active checking account and a job.

Payday insurances are usually written for no more than $1,000, but the lender will determine how much you are entitled to borrow based on your paycheck to the homeowner, or the combined pay of you and your spouse (if you have a combined checking account). Payday insurances are a little higher than other insurances in terms of the interest you will pay, but they can really help borrowers with bad credit who are in dire financial straits.