People with bad credit find it hard to get regular loans through traditional lending institutions such as banks. For one reason, banks usually look into borrowers’ credit rating. In other words, your rating, together with your proof of employment, is your ticket to getting approved. But, how about if you do not have a good payment history? This is where bad credit loans can help you.
Banks may offer bad credit loans as well. However, if you are a first-time borrower, you are unlikely to get approved unless you have an asset to present as collateral. The good news is, if you have collateral, your loan interest may be lower. The bad news is, the process offered by banks may take a little longer. Thus, if you are in dire need for cash to make ends meet in between paydays, this option may not be the most ideal for you.
Fortunately, the loan industry has massively expanded, that it is now offering small and fast funds online. Even if you have a poor rating and have no asset to present as collateral, you may still be able to find the money you need online. There are many online lenders offering bad credit loans to people who need fast cash.
Online bad credit loans are unsecured loans. This means you as a borrower don’t need to present anything as collateral. However, also note that there are lenders that may accept collateral. If you want lower interest rate, you can also use an asset to back you up.
In most cases, lenders only offer small amounts, ranging from as little as $100 to $1500. Some lenders may offer more, but note that the amount you may be approved of will depend on your income.
Although some bad credit loans online have longer repayment term, mostof them are for short-term that have to be paid back in days to a month. They are also called Payday or Fast Cash Loans.
4. Fast Approval
Same-Day Loans are among the most popular forms because of their fast approval. As the term suggests, Same-day Loans are approved within 24 hours. If you are not a first-time borrower, you can even get approval within minutes.
5. Bad Credit
As mentioned, you payment history does not matter for bad credit loans. Lenders will not check your payment history.
It is important to note though that online bad credit loans have higher interest rates attached to them. This is because these are high-risk loans to lenders. Although these loans have higher interest rates though, bad credit loans are preferred by many borrowers, even by those with bad credit, mainly because of the convenient features these loans offer.