Apply for up to $1500 with 6 months to repay
Bad Credit Loans
If you’re fresh out of college, it may take you some time to land a job, and that’s because jobs usually look for people who have experience already. Companies won’t usually take a risk on someone who is new to the field.
That’s like how loans and credit scores work, most lenders won’t take a chance on you especially if you have a bad credit score. There will be rejections, but if you find the right lender and the right loan, you may be able to get one.
Introducing the bad credit loans, bad credit loans are those short-term loans who has a much lenient requirement, and sometimes doesn’t even do hard credit checks, which improves your chances of getting approved by a lot.
Requirements for bad credit loans
One thing that you can do before applying to a bad credit loan is to find out the requirements of your lender and see if you’re qualified. Preparing your requirements beforehand makes the process smoother and increases your chances of getting approved.
Different lenders will have different requirements that you need to meet, but some of the most common ones are the following:
• Should be 18 years of age.
• Must be a US citizen
• Proof of income (such as a paystub)
• An active checking accounts
Those are the most common ones, but some strict lenders may ask for a collateral, in short – a secured loan.
Installment loans for bad credit
One type of bad credit loan is an installment loan, it’s a type of short-term loan where you pay in installments on a monthly or weekly basis. With this loan, you have the ability to finance big projects as you are able to borrow a much bigger amount of cash compared to other short-term bad credit loans.
With this loan, and with a good lender, you can have a flexible payment term and a reasonable interest rate that would make repaying this loan a lot easier.
Short-Term Loans for bad credit
Compared to traditional loans, a short-term loan is only used for short-term financing, meaning only a minimum amount of cash can be borrowed, and would usually need to be repaid in a short-time. Short-term loans are kind of a double-edged sword as it provides you with the cash that you need, but also can burry you in even deeper debt if you mismanage it.
It’s relatively easy to apply and get approved, but the payment can be hard as oftentimes short-term bad credit loans come with a high interest rate that can get out of hand very quickly.
Credit Card Loans for bad credit
Credit cards can be a good source of emergency funds, and can be immediately used for any purchases, making it an alternative for short-term loans.
There are two types of credit cards that are available in the market right now, secured and an unsecured one. A secured credit card is a type of bad credit loan that requires the borrow to give an initial deposit, while an unsecured one doesn’t require anything.
You don’t necessarily need a good credit score to apply for a credit card, but only an active checking account. Once done, your application will get processed fairly fast and would receive the card in a few days.
Something to keep in mind though, credit cards have a lot of fees and charges with them, especially if you have a poor credit score. Oftentimes, credit card comes with a processing fee, an annual fee, and program fees.
Things that you need to keep in mind with bad credit loans
People tend to be desperate when in an emergency situation, especially if your credit score is kind of bad. It’s when you need the money most that you would find yourself in an unfavorable situation. With bad credit loans, there are dangers involved and if you’re not wary about it, you may end up in a debt spiral.
If a lender approaches you and offers a guaranteed approval loan, that’s most likely a scam, in a loan, there’s no such thing as a guaranteed approval, only those loans who have high approval rates.
Double check your contract, the rates and the terms, and see if it matches with what you’ve agreed on. Never sign a contract if you’re unsure.
Even if desperately need that funding, you must go into the situation with the right knowledge. Do your research and know what you’re getting yourself into.
Loans can and will be expensive, especially those short-term ones. Make sure you manage your finances right and pay on time to avoid falling into further debt, and damaging your credit score even more.
Tips To Maintain Good Credit
Stuck in a debt trap? You’re not alone. Learn more how to get your credit up…
5 Effective Ways To Control Your Finances…
Learn how to manage your finances before you end up broke. Here’s how you do it …
Tips On Choosing A Loan…
Loans can be alluring. But knowing which loans to apply for makes a difference…
Ready to Start Streaming?
You’re just a step away towards financial freedom. Apply now!