Bad credit loans california

Our most recent contact has indicated that he is looking for suggestions on how best to consolidate his credit card and gambling debt and also how to gamble responsibly and not grow debt even further than he has. He is applying for $30,000 which could be either a personal loan or it could be consolidated with the mortgage on his home to take advantage of the equity that he has in his home. He wants to know which is the better approach. He also wants suggestions regarding how to control his gambling so that he does not owe a lot in the future from gambling.

We are not gambling addiction experts and we really have no professional suggestions regarding gambling. We have heard many people have just simply stayed away from casinos to avoid the temptation. If they must go to the casino, they will take a limited amount of money with them to gamble with and when it is gone, they leave. They also leave their debit cards and credit cards at home when they go to the casino to avoid any temptation. Other than those small suggestions we suggest a call to gamblers anonymous for further help and suggestions.

Regarding how he should finance his $30,000 debt, there are two main alternatives which he has mentioned. The chart at the end of this post illustrated the interest costs and monthly payments covering the $30,000 consolidated with his mortgage at 5% over 25 years compared to a 5 year loan and a higher personal loan interest rate.

Bottom line is that consolidating this $30,000 loan with his mortgage will result in much lower monthly payments over a long period of time with corresponding much higher interest costs even though the interest rate is much lower than a personal loan. The personal loan will cost about half as much in terms of total interest costs, due to a much shorter term, however the monthly payment will be 4 times that of the mortgage payment.

It basically comes down to cash flow. If the client can afford the higher payments, then they are much better off in the long run to take the personal loan and pay the loan off quickly to minimize the total interest cost of the loan.


The latest applicant has asked some really good questions about debt service relief and the associated costs. Debt relief service costs are real and they are charged by the companies that will help you with your debt solution. How much they cost really depends on just how much debt you have and what option or options you eventually decide on as solutions to your debt problems.

We always like to first learn how much debt the customer has and what it is costing him or her today. The customer should know this as well. Unfortunately this applicant only told us that they had credit card debt. Credit card debt is usually in the 20% range for most bank credit cards and 30% for store based credit cards. For example on forty thousand dollars of credit card debt, this client might be paying as much as $8000 a year in interest charges alone. Compared to a 7% loan, that charges interest on the declining balance this is very expensive. Remember that store credit card debt has even higher charges.

Debt releif service costs can include the following, again depending on the solution that is selected. There are transfer fees to transfer the debt to a new loan, hopefully at lower interest rates. There may also be registration fees and miscellaneous processing fees. There may also be an  annual management fee for as long as the company is managing your debt. There will be also an interest charge on the outstanding debt which should be much lower than the rate that was paid on the credit cards, unless your credit rating indicates that you are a high risk client. In this case fees and interest rates my be higher to reflect the high risk that comes with a bad credit rating.

As a consumer who is in this kind of situation, they need to compare the costs they are currently paying along with the monthly payments to the total fees and monthly payments they would pay under a debt relief situation. This comparison should tell them which is the better solution. Neither solution is going to be very good, however you are selecting the best one available given your situation.


There’s no doubt that it is very difficult for people to find a loan with no job. As far as the lender is concerned, a person without a job represents a great deal of risk with regards to repaying the loan. There are ways to be approved for a loan with no job however they come with a variety of penalties which many people may not want to consider.

For example if you own your own home, and have equity in the home, some lenders will approve a loan with the home provided as security. What this really means is that if you default on the loan, the lender has the right to take your home and sell it to recover the loan proceeds and interest that has accrued. this would be truly catastrophic for many consumers.

This client is currently renting, is up-to-date on all his bills including his rent however he has used all of his savings at this point in time and needs a loan to bridge the next two weeks until he gets his first paycheck from a new job that he is just been hired for.

Lenders will still view him as a high risk client however if he can get a letter from his new employer indicating when he will start the job,  how much he will be paid along with how long his new contract is, this will help with regards to being approved for a loan with no job. He will still be considered high risk and will be requested to pay a higher amount of interest on his loan to reflect the risk that the lender perceives.

The table at the bottom shows a calculation of a variety of different interest rates for a five-year term and $10,000 in loans. It will be up to the lender regarding what interest rate he be offered, however the client can get some idea of how much interest he will pay and what the monthly payments will be by studying this table. He can also fill in his own numbers if he has a different amount in mind.


The latest applicant lives in Henderson Nevada, does not have a job due to his disability and receives SSI benefits on a monthly basis.  As a result he is under a number of restrictions with regards to how much money he can earn as well as how much he has in terms of overall assets.  He currently volunteers at a local organization that has helped him in the past as a means of paying back this support. He is in no way obligated to repay the support he received, but feels that morally that this is a good thing to do. He also receives support from the group and enjoys the social side of getting out and helping people.

He would like to borrow some money, $5000 when collecting SSI to pay for some improvements that he would like to make in his apartment to improve his overall quality of life. He does need to be careful that this loan is not perceived as income to avoid jeopardizing his income benefit. There are several comments that we need to make with regards to this loan application.

This potential borrower, although he has a steady income does not meet the criteria for a loan due to his income level. As a result it is unlikely that he would be approved for a loan. This is unfortunate for him, since the improvements he is interested in would certainly make his life easier.  Even with a low interest rate loan that is spread over a five year term, the monthly payment will be too high for someone with his income level.

He may be able to secure some or all of the support he needs in terms of improvements by appealing to local business or other agencies in the community where he lives. With the right contacts it is possible to gain assistance for improvements in terms of free equipment and labor to accomplish what he is looking for.


The latest person to write into our web site has gotten himself into a really difficult situation from a credit rating perspective. Basically he has been turned down by all lenders due to his bad credit rating and frankly we do not think that any of our lenders would entertain a loan to him. He has asked about how to recover from a really bad credit rating and we will cover some of things he can do to get started in this direction.

The bottom line is make sure that you meet each and every monthly payment on time.  There are three  items to consider right away. First check your credit report to ensure that it is accurate. There may be some items that are not correct and you need to dispute them. Secondly, set up monthly payment reminders so that you never miss another payment. Make your payments a few days early to ensure that they are never late even by one day. Third, begin focusing on the debt that you owe and pay off the debt that is carrying the highest interest first. Once you pay off this debt, you will have more spare cash to focus on the other debt that you owe. There is no easy answer on how to recover from a really bad credit rating, but focusing on meeting your obligations on time will go a long way to improving your rating. It can take as long as 7 years to remove debt items from your credit rating so be patient on that front.

If you are having difficulty meeting monthly payments because of high interest debt, you may want to see a debt counselor. He or she may recommend a consolidation loan to consolidate all of your debt into one monthly payment that is carrying a lower interest rate. This step alone can save you hundreds or thousands of dollars depending on the size of your debt and how long it takes to repay your debt.

Stay away from pay day loans and other short term loans. These carry high interest rates, even higher than credit cards along with fees. They are very expensive and will use income that could be used for paying down your debt.

Focus on repaying your highest interest rate credit cards as well. Some carry interest rates at 30% while many are around 20%. At these rates making the minimum monthly payment will take you years to repay the balance on your credit card. Take out a low interest consolidation loan or fully pay the balance as quickly as you can to avoid high interest rate charges.

If you have a lot of credit cards, you may want to consider closing some of them. Although it will take a long time for this step to be reflected on your credit rating, it will make a difference in the long run. It shows that you are taking the issue seriously. Be patient and stay focused on the end game which is to improve your overall credit rating.


Establishing a good credit line can be difficult for people just entering the work force like our latest client. He is working as a waiter at a well known restaurant, making good tips and setting up his new apartment. He does not have a lot of expenses or debt such as a car loan or other loans. Having recently moved into his apartment and recently started a job he has little in the way of a credit rating. He had to purchase just about everything he needed on credit and now wants to be approved for a $10,000 personal loan so that he can pay off the credit and focus on the personal loan. He will pay much less interest as a result and be able to repay this small debt more quickly.

His only mistake was to spend the money before applying for a personal loan. Obtaining a personal loan under these circumstances can be difficult sometimes when just starting out due to lack of history of any kind in terms of paying rent on time, paying car loans on time, paying utility bills on time and paying for any debt on time. He is considered a higher risk just because he does not have the credit rating history to show that he is dependable and is a good credit risk.

This consumer has several options to consider. He can just focus on repaying the credit card debt as quickly as possible putting everything he has in terms of cash towards it. Yes he will pay more interest, but it is the easiest option if he cannot get approved for a personal loan.

He can also apply for a higher interest personal loan. It will still be lower than his credit card and he will pay less interest. He really should focus on repaying this loan as quickly as possible as well to reduce the overall interest that he pays.

Finally he can ask someone, maybe his parents to cosign on the loan so that he is able to obtain a low interest loan. It does mean that his cosigner takes on the risk of having to pay the loan if he defaults. He will pay less interest as a result and should work hard to repay this loan as quickly as possible.


The latest applicant needs a new mortgage of $250,000 and needs approval quickly so that he and his wife can remove one condition on an offer they have on a home they would like to purchase. They are being offered subprime mortgages by other lenders and are wondering what to check out before getting a subprime loan?

A subprime loan is typically a loan that is offered to borrowers that have less than perfect credit ratings. The subprime loan interest rate can be from 1% to as much as 10% above the current prime lending rate, which can be a substantial difference in terms of both the amount of interest paid and the monthly payments. In the chart at the bottom of this post we have shown the total interest paid and the monthly payments for a mortgage close to prime, at 5% and also at 11% which would be indicative of interest rates for subprime loans at the time of writing this post.  The difference between a mortgage at 3% and one at 11% for a 30 year mortgage is an increase in the monthly payment by over $900 a month and over $300,000 in total interest payments over the life of the mortgage. This is a substantial amount.

The other major difference from regular loans is how often over the life of the mortgage that the interest rate can change. Clients could be looking at significant interest rate increases in the future since interest rates are at the lowest levels in years and are forecasted to increase.

This client will need to consider very carefully which type of mortgage he takes since the financial cost can be significant.