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Get Approved for Personal Loan Today with Bad Credit Score
Get Approved for Personal Loan Today with Bad Credit Score
Having bad credit is not a life sentence! Sure, banks will turn you away. They will not approve your personal loan. They are even upfront about it. If you’re shopping for bank loans online, on the online application forms, they have their minimum credit score stated. It’s usually 660+.
Following the sub-prime mortgage crisis of 2007 that triggered the stock market collapse, banks had to change their approach to offering loans. No longer could they lend to risky borrowers or consumers with moderate to low incomes. New regulations were meant to reduce their risk profile.
There was a void left by banks. Fortunately, it has been filled by online lenders. Many of these lending institutions started cropping up from 2010. They don’t have in-store locations. It is a good thing since it means lower overhead costs. They are also more risk-tolerant. Their main products include:
|Line of credit||Personal loan||Payday loan|
|Only what you need||Get full amount||Get full amount|
|Rate 7% to 22.6%.||5.99% to 35.99%||280% to 720%|
|No fixed loan term||3 to 72 months||8 to 30 days|
How much are you earning per month? Your net income. Let’s say, it’s $2000. How much goes towards fixed expenses and debts? Assume, it’s $1000 for rent and $200 for your auto loan. You also spend $450 on variable expenses like groceries, etc.
Effectively, you’re left with $350 as your discretionary income.
Simple question: Can you afford a $1000 payday loan to fix your car? Remember, you need to repay this loan in 14 days. Put simply, you can’t afford it. However, you might afford an online personal loan with monthly installments of less than $350.
It’s a score that makes it hard to obtain traditional loans. Here is a table that illustrates credit score ranges. We have used the FICO scoring model and not VantageScore since it’s the most prevalent scoring model in the US:
|300 – 579||It’s a very poor score. Hard to obtain credit.|
|580 – 669||Fair score. Customers will find subprime loans at higher rates.|
|670 +||Good. Borrowers can easily obtain loans.|
Getting fast access to funds is critical when you’re dealing with a wide range of emergencies. Bad credit loan lenders can offer fast loans because of various factors, including:
Some personal loans offered by traditional institutions require you to provide the lender with some collateral. If you can’t pay the loan, the lender may sell off the pledged collateral to recoup their money. Car cash loans offered at loan stores also require you to surrender ownership of your car title.
Loans for bad credit don’t require you to pledge any of your personal assets as collateral. You don’t risk losing your home as it is with a home line of equity or your car as it’s the case with car cash loans. With no security required, the loan is simpler and also faster.
You can easily obtain a $5000 loan and have up to 24 months or more to repay it. Long term loans help borrowers get back on track. The longer the term the lower your monthly payments.
However, you might end up paying more interest. It also takes more time to be debt-free. Most people consider living without debt as their main financial goal.
Mainly, loans under 12 months are considered short-term. Some lenders consider loans with terms of up to 18 months to be short term.
Forget banks or credit union loans, you’ll be obtaining your loan from online lenders. Most don’t have minimum income or credit score requirements.
They offer loans through their websites. The best way to find these companies is to apply through a loan matching service, for instance, Just Right Loans. Here are some key characteristics of a matching service:
On our website, for instance, select “Apply Today” to launch the loan application form. One thing you’ll notice is that your security is taken seriously.
The forms are secure and data is encrypted as it’s sent to lenders. It’s also stripped from identifying information, such as your SSN.
Online loans for bad credit have high approval rates. You typically receive a loan offer in your inbox informing you that you have been pre-qualified. The interest and loan term may be stated in the email.
Obtaining the pre-qualification letter does not mean that you have been approved, however. You’ll be asked to pass a background check, where the details you provided in the form are verified for accuracy.
Some loan companies will successfully verify the details without asking for additional documents. Some ask for copies of your salary slips (pay stubs), utility bills, government-issued photo ID, etc.
When you have been approved, you’ll be offered the loan agreement to sign. It represents the contractual agreement between you and the lender.
In the terms and conditions section, you’ll have to promise to pay the loan within a specified number of months. Other terms stated include the loan amount, finance charge, annual percentage rate (APR), etc.
You get your cash in one lump sum payment. It’s deposited into your checking account. Transactions are processed on working days. That means you can’t receive cash on Saturdays or Sundays.
Prioritize your loan repayments. Missing repayments, getting late, or having insufficient funds in your account all have grave consequences. For instance, if a lender tries to cash a check only for it to bounce, your bank will charge a fee ranging from $27 to $35. Failed ACH withdrawals also attract insufficient fund penalties.
Here are the common uses for installment loans:
Get your loan as soon as one business day. Remember, the loan requirements are not-strict. Most lenders will accept you if you have a stable source of funds, you’re at least 18 years old, and have an active bank account. Click “APPLY NOW” and fill out your application form.