What are bad credit loans?
Bad credit loans are small, short-term loans designed for people with poor credit rating. These loans only offer between $100 and $1,500 and have a repayment period of days to two months.
There are several types of bad credit loans. The requirements, repayment term, and size of loan vary per lender and type of loan. For instance, payday advances are paid back on the borrower’s next payday. Meanwhile, installment loans may have a longer repayment period and are paid back in an installment basis over a certain period of time.
What are the requirements?
Unlike regular bank loans, bad credit loans don’t require a credit check. This means the lender will not run a credit check on you as your score is not the qualifying factor for you to get approved on this type of loan. Requirements vary per lender but most lenders only require: proofs of identity, income and address as well as a duly accomplished application form. You should also be of legal age and a U.S. citizen.
How do I apply for bad credit loans?
You can apply for bad credit loans online. All you need to do is find a lender and follow their application process. In most cases, you will be required to fill out a form and send the requirements either via fax or email.
How do I choose a lender?
The Internet offers you hundreds of lenders, so choosing a lender can be confusing. But as a rule of thumb, it is best to only deal with lenders licensed in your state. Lenders are also subject to state laws, so choosing one that legally operates in your state should help you avoid from companies that charge exorbitant fees. In addition, consider the reputation of the company. You will have an idea on whether you can trust the company by reading reviews of the company’s customers online. Then, of course, study the loan’s terms and conditions to determine the fees and terms that come with the offering of the company.
How do I know if the loan is ideal for me?
First, you need to know how much money you need and when you can pay back the loan. If you need between $100 and $1,500 and you can realistically pay for it within a shorter repayment period, the bad credit loans are for you. Also consider your other financial obligations. Minus all your financial obligations such as your rent, fuel, food, school fees, and insurance, can you afford to pay for the money you want to borrow? Bad credit loans are the perfect solution to your temporary and small financial problem only when you can afford them. Otherwise, you will be in more financial troubles.