The way that lenders think can be summarized in two simple words: risk mitigation. In other words, every lender on the planet who cares about getting their money back (and that is 99.9% of them) carefully weighs the interest rate they charge against the chances that the loan will actually be repaid.

There are several factors that lenders look for in order to make a potential loan deal less risky in the eyes of a lender. These factors include:

* the amount of the loan
* the borrower’s credit score
* whether the loan is secured (i.e.., has collateral associated with it) or unsecured

One of the notions that many people have heard of is that of a 100 percent guaranteed loan, such as a bad credit personal loan. The idea of a guaranteed loan is a wonderful one, indeed: especially in the eyes of somebody who desperately needs the money fast. However, there are some myths floating around about these types of loans.

Here are 5 common myths about 100 percent guaranteed bad credit personal loans:

Myth #1. Everybody is guaranteed to qualify for a personal loan:

There is no law that says that any given lender must grant any given borrower a loan. In that sense, there is no such thing as a 100 percent guaranteed personal loan. However, if you know how and where to look, you have an excellent chance of qualifying for a loan – no matter what your credit score may be.

Myth #2. If you have bad credit there is nothing you can do to get approved:

Some personal loan lenders actually specialize in working with borrowers who have a bad credit score. These lenders have unique ways of determining their risk in lending money to a particular person – ways that go well beyond just looking at the person’s credit score.

Myth# 3. Having a bad credit score automatically means paying extremely high interest rates on a loan:

It is true that most lenders will adjust the interest rate they charge a borrower based in part upon that person’s credit score (see the above notes regarding risk mitigation). Still, bad credit personal loans do not have to come with high interest rates. This is especially true if you are able to put up some collateral on the loan, such as an item of value or a future paycheck.

Myth #4. You are better off only applying with a single personal loan lender:

Most people who need money do something mysteriously illogical: they only apply to a single personal loan lender. Then, if they get rejected, they just give up. Bad idea! Instead, apply to at least 4-5 lenders. This is the best way to improve your chances of qualifying for a loan.

Myth #5. You cannot borrow very much money if you have bad credit:

Just because you have a poor credit score does not mean that you will not be able to qualify for a good-size loan: people with bad credit have been known to borrow $ 2,500, $ 5,000, $ 10,000 or more in the form of a personal loan.

Consider these 5 myths about 100 percent guaranteed bad credit personal loans, then get to work applying for the loan you need.

We’ve all heard the news. The nation is in the grips of a housing crisis. Perhaps you have no need to hear about it in the news because you’re right in the middle of your own personal crisis, worried about losing your home or falling behind on payments. The good news is, though, that loan modification could bring an end to your worries.

If you’ve ever spent some time talking to acquaintances about ways to avoid getting a traffic ticket, then you know that common myths always seem to come up. Have you heard the one about the guy who refused to sign his speeding ticket? The court was unable to prosecute him and therefore unable to collect a fine. Though it may sound believable, it still isn’t true.

Just like myths abound with traffic tickets, the same is true of loan modification. Whatever you may have heard about it, it pays to contact a loan modification attorney before deciding on the word of hearsay that you won’t qualify.

Here are a few of the most common misconceptions regarding loan modification, along with a few truths that you can take to the bank — literally.

Myth: If you have poor credit, you won’t qualify.

The truth is that your credit score has very little affect on whether you qualify or not. This is because loan modification is not refinancing or taking out a new loan. It is simply modifying the loan that you already have.

Myth: If you’ve received a foreclosure notice, it’s too late to save your home.

Actually, as long as your house hasn’t been resold by the bank, they may still be willing to work with you. This is especially true in slower markets where houses don’t sell well. Banks often would rather work with you to get you to where you can afford to make payments again rather than potentially lose money by auctioning off the house.

Myth: I don’t need help getting a loan modification. I can just negotiate with the bank myself.

Technically, this isn’t a myth. You can try to negotiate a loan modification on your own. You can also represent yourself in a criminal case. In both cases, unless you are very well educated and experienced in the matter, the turnout is unlikely to be good for you.

A loan modification attorney understands the laws surrounding the process and has the experience needed to negotiate the best terms for you. You may even find that an attorney has ways to legally obligate a bank to negotiate even if they initially refuse to work with you.

Have you heard the story about the cop who forgot to put his hat on and therefore invalidated the ticket he wrote? Remember, just because you’ve heard somebody somewhere say something about loan modification doesn’t make it true. For the real scoop on how loan modification can help you, contact a loan modification attorney.