Expert Insights: Navigate Personal Loans for Bad Credit Wisely, Advises James DiLellio

WalletHub published an insightful article on personal loans for individuals with bad credit, shedding light on various lenders' offerings and tips for navigating the borrowing landscape. Among the notable findings, Upstart emerged as a top choice, offering loans without stringent credit score requirements and competitive APRs. Pepperdine Graziadio faculty member James DiLellio shared his expertise on the topic, offering valuable advice for borrowers in need of financial assistance.

DiLellio emphasized the importance of careful planning when considering personal loans, particularly for individuals with bad credit. He noted that while such loans may be necessary in some situations, borrowers should aim to repay them on a schedule that suits their financial circumstances. Additionally, he advised borrowers to opt for loans that allow early repayment without penalties, thereby minimizing the overall cost of borrowing.

When asked about the limited availability of personal loans from major banks for individuals with bad credit, DiLellio explained that such loans are perceived as high-risk ventures for banks, as they often lack collateral and pose challenges in terms of repayment. Consequently, major banks tend to shy away from offering personal loans to individuals with bad credit.

Regarding common mistakes to avoid when applying for personal loans, DiLellio cautioned against borrowing more than necessary and accepting loans with high interest rates. He underscored the importance of thoroughly assessing one's financial needs and exploring all available options before committing to a loan.

In terms of alternatives to personal loans, DiLellio advised against resorting to payday loans, which often come with exorbitant fees and interest rates. Instead, he suggested exploring alternative means of borrowing or deferring purchases whenever possible to minimize financial strain.

DiLellio's insights serve as a valuable guide for individuals navigating the complex terrain of personal loans, particularly those with bad credit. By heeding his advice and carefully evaluating their options, borrowers can make informed decisions that align with their financial goals and priorities.

Read the full article here.