You need cash and you need it fast. Whether it's for rent, your auto payment, insurance, or food, the reality is that you just need a small loan until your next paycheck.
But you've also got bad credit and right about now you're feeling anxious and frustrated.
You can get loans even if you have bad credit - and you can get them fast.
Call them bad credit loans, online personal loans, payday loans - the truth is that if you've got income coming in, a bank account, and a government issued ID, you may be eligible for a fast loan even if your credit isn't that great.
What Are Bad Credit Loans?Bad credit loans are personal loans for people who have a poor credit score or just haven't built up their credit yet. By bad credit, we mean a score that ranges from 300 to 579 according to FICO (Fair Isaac Association). These quick loans for bad credit are offered by some banks and lenders as secured or unsecured loans. Secured loans usually require some sort of collateral, like your car or home.
Unsecured loans don't require such backing. As such, your interest rate is likely to be higher and you may not be able to borrow as much money as a secured loan. The reason is because you aren't backing the loan up with any assets.
HOW DO BAD CREDIT LOANS WORK?Loans for people with bad credit work much the same way as a good credit or personal loan. The major difference will be the interest rate and perhaps the terms of repayment. If you're approved for the loan, you agree to a certain percentage rate and a certain number of monthly installments.
There are some banks that cater to people needing a bad credit loan. There are also direct, private lenders or companies that loan fast cash to those with poor credit.
WHY IS IT USUALLY DIFFICULT TO GET A LOAN WITH BAD CREDIT?If you have bad credit, this is typically a red flag to a lender. It might mean that you've not handled your finances great in the past, perhaps missing payments to creditors, filing bankruptcy, getting evicted, and so on. It could also mean than you simply haven't built up your credit yet, which is oftentimes the case for youngsters.
Lending money to someone with bad credit is risky for a lender, and that's why it's usually difficult to get a loan. Would you lend money to your friend who hasn't paid back many of his debts? You might, but it would be a bit risky. However, if they were diligent and faithful with their debt repayments, you'd be much more apt to lend to them.
The benefits of bad credit loansAny cash advance should be taken with caution, but it doesn't mean they can't be used to your advantage. Here are the main pros of bad credit loans to consider.
- They don't take long to obtain. Today, you can get one without leaving the house, and you'll likely get a response in a few hours. Whether you're looking for a loan in Oregon or Virginia, there's a high chance to obtain the money in one day.
- Lower interest rate. Some companies offer a much lower rate than you might have to pay on a bank card debt. So it makes sense to use a quick cash advance to stay ahead of your payments.
- Variety of lenders. The number of lending companies grows every year. With enough patience, a thorough approach, and a bit of research, it's not hard to get the cheapest rate.
- Repayment terms. In some cases, you might be able to stretch the repayment term up to a year or even more.
- Boost your score. There's no better way to show banks that you can be trusted than to close debts on time. They'll gladly boost your credit score.
- Bad credit loans have no restrictions. You're free to manage borrowed funds the way you like. Once the money gets into your hands, you can use them to repay debts, cover an emergency expense, or avoid fees. No one will ask what you did with your money.