Quick Loans for Bad Credit
Bad credit refers to a person’s history of owing too much and not paying back loans when due. Your credit score determines whether you have good or bad credit. Obtaining loans with a bad credit score is challenging for most, especially in situations of emergency or urgent financial need.
In such instances, the chances of getting the attention of any lender to grant you a loan become very low. This is where bad credit loans come in. They are granted quickly without minding your credit score and are usually the best option for immediate financial relief.
What Are Quick Loans?
Quick loans are loans within short periods, sometimes within one business day, devoid of the usual rigorous screening and documentation that accompanies regular loans. They are often used to take care of short-term financial difficulties and emergencies. The loans can range from a few hundred to thousands of dollars depending on the type of quick loan.
What Are Quick Loans for Bad Credit?
These are loans given to persons with bad credit scores quickly without a hard credit check and can be easily accessed online. Some such loans can protect your credit score from worsening since they may be inaccessible by the main credit bureaus that determine your credit score. Examples of such loans we considered in this article are payday loans, unsecured personal loans, and secured personal loans such as car title loans.
Payday Loans for Bad Credit
Payday loans are quick loans for borrowers with bad credit who require an urgent financial bailout. Federal and state authorities regulate payday loans, usually obtainable through online applications to payday lenders. You pay the loans on your next payday, and it usually attracts high-interest rates, up to an annual percentage rate of 400% or more in some instances. Proof of your income and payday is usually required, enabling payday lenders to base the principal loan you require on a percentage of your income. You can roll over when you cannot make payment on the agreed payday. However, you have to pay the initial borrowing fee till your next payday, when you pay the original loan balance and the fee for the rollover.
Unsecured Personal Loan
An unsecured loan is yet another loan for bad credit. Unlike payday loans that you have to pay back on your payday, you can repay the loan in fixed monthly installments over a set period, and it does not require any collateral. Although the interest rate may not be as high as the interest rate on payday loans, it is also relatively high. Lenders may also hide higher interest rates in upfront fees such as loan origination and application fees. The qualification requirements are also stricter.
Secured Personal Loans for Bad Credit
Secured personal loans are loans for bad credit loans that require some form of collateral to access. Obtaining the loan is not affected by your bad credit; however, you must have a car title or home to use as collateral. We consider the car title loan in this article.
What to consider when taking a loan for bad credit?
You must critically analyze why you need the loan and other options available outside the bad credit loans. Also, you must be relatively sure of your ability to pay back the high-interest rate alongside the principal amount of the loan to avoid being in a vicious cycle of debt. Finally, consider the harm it could do to your credit history in case of a default. Take the loan only if necessary; it could help improve your credit score.
The Credibility of Lender and Interest Rate
There are many bad lenders in the bad credit loan industry. Therefore, you should do a background check on the lender before applying for the loan. Also, you should compare the interest rate the lender charges with that of lenders of similar loans to get the best deals.
Source of Income and Loan Amount
You must consider the stability of your source of income, the loan amount, and how much you can conveniently pay back before applying for a quick loan. An unstable source of income and a huge loan amount could lead to difficulty in paying back the loan and further damage an already bad credit score.
How Much Can You Borrow Through Quick Loans?
The amount you can borrow as a bad credit loan varies and depends on the type of loan. For a payday loan, the loan amount could range from $100 to $15,000, depending on the lender and state legal maximums. The amount accessible under unsecured personal loans ranges from $1,000 to $50,000. However, with a bad credit score, you will likely receive a lower loan amount than you requested and a higher interest rate. For secured loans, the loan amount obtainable usually depends on your collateral’s value. For instance, with car title loans, the loan amount usually ranges between 25% to 50% of the value of the car you use as collateral.
What Are the Benefits?
Bad credit loans are quickly and easily accessible with no minimum credit score requirement most times. The approval time for the loans is usually short. The loans are usually obtainable through online application within 24 hours or at most two business days. You can easily get the cash in your bank account within 24 hours of approval. These make them suitable for addressing emergencies and when you have bills that need to be paid as soon as possible.
Easy Application Procedure
You make an application for quick loans online, and it does not require the rigorous documentation procedure and hard credit checks that accompany regular normal loans. Persons with poor credit history can access loans without fear of denial based on their current poor credit status.
May Improve Bad Credit History
Paying back your loans monthly or as agreed without defaulting on lenders of bad credit loans is a great way to improve your score and credit report. While your credit score may drop when you take the loan, successful repayment without default helps to redeem your poor credit history and raises your credit score. A raise in your credit score will make it easier for you to receive financial support in the future.
Get Quick Loans For Bad Credit With Guaranteed Approval Within Minutes!
A bank or credit union may deny your loan application when you have a bad credit score. However, bad credit loans are available to you as quick loans and lifesavers in emergencies or periods of financial difficulty. Sometimes, they may also help improve your bad credit score. However, you must exercise caution in your quick online loan application. Ensure you understand the nitty gritty of the contract before agreeing to anything.
Weigh all your options, and check the benefits and downsides of taking that quick loan. Be sure you need it, and it will benefit you; check the regulations guiding such loans in your state; then you can take the plunge! For more detailed information, visit Money-Wise today!