Bad Credit Loans
If you have bad credit but need cash urgently, you may be concerned about not being approved for a loan. But what if we told you that you could get a loan even with bad credit status? Nice uh? Our guide walks you through how you can get a loan regardless of your credit history. Just like any other financial product, you need to submit an application form containing your income information, assets as well as agree to a credit check to be performed on you before getting loan approval. Most direct lenders prefer customers with a proven history of paying their bills and other utilities on time and making enough money to cater to their debt while honoring terms and agreements.
In case you need some cash quickly but are worried you will be rejected for a loan application, this article might help you.
But first thing, what is a bad credit loan? Let's find out.
What Is A Bad Credit Loan?
When you hear the term bad credit loan, it means just how it sounds. These are loans designed specifically for those with a bad credit report or who have no credit history. While these loans can come in handy when you are in need of urgent cash but have a bad credit score, they tend to carry higher interest rates as well as come with greater restrictions compared to other types of loans. This is to help direct lenders lessen the risk in case you don’t repay the loan back.
But this does not mean that bad credit loans are useless. They can be pretty convenient if you can manage them responsibly.
Most importantly, there is no such thing as "bad credit loans"; instead this is just an unofficial term for them, therefore you will never find a creditor advertising a "bad credit loan" online.
Also, let not the name send shivers down your spine, bad credit personal loans are totally safe if you obtain the loan from a trusted creditor. But you want to tread carefully when applying for a guaranteed loan for bad credit because some lenders may decide from nowhere, to charge exorbitantly higher rates, charge huge late fees and early payoff penalties.
We urge anyone with bad credit to always do their due diligence before signing on the dotted line so that you are comfortable with the loan terms and agreement.
What Are The Advantages Of Bad Credit Loans?
The main advantage of taking a bad credit loan is that you don't have to worry about your credit history to get instant approval. And even without collateral or guarantor to present, you can still get a loan today.
But put that to one side, no denial bad credit loans have a bunch of other advantages, including:
Fast Approval
One of the primary benefits of bad credit loans is that you can withdraw your funds immediately after the creditor approves your application. Moreover, most credit unions that offer this type of loan tend to have pretty fast loan processing.
No Hidden Or Extra Fees
You will be relieved to learn that lenders that offer installment loans for customers with bad credit do not charge document fees, discharge flat fees, processing fees, or penalty charges, like most types of loans that charge large amounts.
Installment Payment Option
Well, if you have bad credit it may mean that you are not capable of paying off your obligations at once and you can struggle with finding means to settle your debts. But bad credit loans creditors tend to allow their debtors to pay off their loans on an installment basis, such as once a month.
Note that if you chose to repay the loan for a number of years, you may be charged high-interest rates.
Access Cash
When you have to deal with several or high monthly payments on your unsettled debt, you may find yourself without enough cash for your daily expenses and needs. This may include money for basic expenditures such as gas, food, clothing, and rent among others.
Not to mention that your disposable income may reduce. Luckily, a same day bad credit loan can offer you the much-needed cash so that the quality of your life does not suffer.
Continue Using Your Credit
While bad credit loans may mean helping you pay off your outstanding debt, this doesn't mean you should shut off the door completely on your credit card.
As a matter of fact, doing so can subsequently slow down your progress and make it extremely difficult to fully make the most of the debt-repayment process. This is because your credit is based on a couple of elements, one of which is the credit usage rate. Doing so indicates that you still rely on credit without maxing out your accounts.
A general rule is to ensure you keep the rate below 35% across all your accounts.
Repair Your Credit Status
The most effective way to repair your credit status is to gradually build up a decent credit history. You can achieve this by repaying your bad credit loans on time. This will show that you are a responsible borrower, thus improving your credit history over time.
Multi-Purpose Use
Providing the loan is not for anything unlawful such as gambling, you can spend your loan on anything you wish. One of the most popular reasons for applying for a loan includes debt consolidation, home improvements, or high-value buys such as a new car.
Why Choose Us For Bad Credit Loans
Micro Enterprise Works is known for connecting those looking for short-term funding needs with a network of direct lenders to provide tribal loans for various emergency needs. Here is what you get when you use our platform to find or offer a loan.
Speed. Our services are extremely fast. We can connect you with a direct lender as soon as the next day (business day). Just fill out the loan request form and we will quickly connect you with a legit reliable lender that is suitable for your needs.
Safety. At Micro Enterprise Works, we safeguard users' personal information. No private data will be sold to a third-party vendor or another enterprise.
Convenience. You don't need to get out of your home in order to connect with a direct lender. Just fill out the loan request form online from the luxury of your home.
Conclusion. Contrary to what the name sounds, bad credit loans are not dangerous or bad. They provide people with worse credit history a chance to access cash for emergencies as well as offering you a chance to repair your credit history and stand a chance of getting a loan with favorable interest rates.