You know you have bad credit if utility companies ask you to pay a security deposit, if you are turned down for loans from banks, if your credit card application gets rejected, or if you find it difficult to get short-term loans. While bad credit does make your life quite difficult, it won’t stop you from getting a loan. You just need to know where to look.
If you do not know what your credit score is or whether you have good credit or bad credit, then you can find out that information in many ways. You can request one free report annually from the major credit bureaus as well.
A credit score is normally a number between 300 and 850. Any score below 600 is considered to be bad credit. If your credit score is between 300 and 600, then you are among those profiles who have bad credit.
But, as mentioned above, all is not lost. Below is information about the different types of loans that a person with bad credit can avail of. It is easy to request these loans and there is every chance of getting approved, even with bad credit.
As the name suggests, installment loans are loans that are repaid back over installments. The amount of installments is fixed and so is the frequency. You know the term of the loan and you simply have to follow a fixed schedule. You also know what component of the repayment is interest and what component is the principal.
Personal installment loans are loans that do not require collateral. It is installment loans that require collateral.
The collateral can be your house or your car. The good thing with personal loan is you get what you see. There are no hidden surprises or anything unknown.
If you need a quick injection of cash to pay a utility bill or an immediate expense, then a short-term loan is what you need. If your bad credit score is preventing you from getting qualified for a traditional installment loan at a bank, then a short-term personal loan can do the trick.
Remember that short-term personal loans that are unsecured can carry high interest rates. The fees and charges can also make the loan quite expensive.
You can get easy approval of short-term loans as long as you can demonstrate to the lender your ability to pay back the full amount on time. Payday loans are a great example of short-term loans.
They have to be paid back within weeks by your next payday. The lender will usually look for a steady source of income, mostly through full-time employment.
Bad credit does not affect individuals in a personal capacity. It also affects anyone who wants to start or expand a business. Starting a business takes a lot of capital.
An established business may also require funds for working capital expansion, increase in the headcount, maintaining steady operating cash flow, or prepare for a spike in seasonal demand.
Whatever the reason, businesses need money at various stages of their evolution.
Business owners who have bad credit may find it quite difficult to get a loan from a traditional financial institution like a bank. Peer-to-peer lending has seen a steady rise in recent times. Such lending can help business owners with bad credit.
Most of us own cars. In fact, statistics say that a staggering ninety five-percent of American households own at least one car. With the lack of alternative transport options, life without a car can be quite difficult in the US. You cannot go to work and even your dating life can take as people without cars aren’t looked upon favorably by people around the country.
If you are not able to purchase a car outright, then you need an auto loan. But, if you also happen to have bad credit, then getting a loan becomes challenging as well. However, it is possible to get an auto loan with bad credit. Such loans are known as subprime auto loans.
Getting a bad credit auto loan is straight forward if you can demonstrate a few things. You need to show proof of income, a track record of steady employment, and provide some personal details. You need to have enough income to be able to pay for car insurance.
You also need to have funds to make a down payment. Usually, down payments are around 10% of the vehicle’s total price. Lenders also look for a debt-to-income ratio of less than 50%. If all these conditions are satisfied, then your prospects of getting a bad credit auto loan are quite good.
Log on to our website and fill out an online loan request form . Then, all you need to do is wait. We don’t ask you to wait for weeks as traditional institutions do.
You just need to wait for a short period of time. Our eligibility and approval decisions are quick. We give them in minutes if all the information is complete and accurate. We even disburse the loan amount in a timely manner and in many cases, borrowers have received the amount in one business day.
We recommend that you follow the below-mentioned steps in order to find the best and most credible loan provider and to get through the entire loan request process smoothly:
Firstly, you must always have a financial plan in place. You should know how much money you can borrow and how you will pay it back on time.
Secondly, you should always shop around for an easy loans. Look up various loan providers online application and study their customer reviews. Evaluate their credibility and track record just the way lenders evaluate your profile.
Thirdly, you must always read the fine print. Do not simply read the main points and leave out the details. Always read everything from top to bottom. As they say, the devil is in the details.
Fourthly, watch out for hidden fees and charges. Any penalties which seem obscure are also a red flag.
Lastly, whenever you are in doubt, simply ask. There is no shame in seeking clarification. Once you sign the dotted line you cannot do much. So, it is better to get everything sorted when you are going through the search and loan request process.
Requesting a loan is made out to be a very stressful thing. However, it does not have to be that way. You just have to follow the process and do your own due diligence.
You need to plan out your cash flows and make sure you are in a position to repay back the loan. Do your research thoroughly and work with credible lenders. If you are a responsible borrower, then you will turn your bad credit into good credit over the longer term. Online loan providers like Greendayonline are here to help you in your emergency.