Find High Risk Loans Direct Lender
Smooth Lending Process for Bad Credit Borrowers
Smooth Lending Process for Bad Credit Borrowers
Don’t get scared off! High risk loans are not bad. They are not going to entrap you in a vicious cycle of debt. In no way are you going to get scammed.
They are loans offered by genuine lenders. These are online lending companies that have agreed to cater to people with bad credit. They also lend to customers with low earnings.
Basically, they are loans structured for people deemed high credit risks by traditional lenders. There are various ways a lender can determine if you’re a risky borrower, for instance, by looking at your credit score.
Your credit score is a measure of your creditworthiness. It’s generated using a scoring model that takes several things into account, including your payment history on past debts, credit utilization, the average age of credit accounts, etc.
The FICO scoring model is the most prevalent. A low score tells the lender you’re likely to default. People with excellent scores are trusted more by lenders to pay their loans. They can qualify for the highest loan amounts at the lowest APR rates.
Lenders who give loans to people with a high probability of defaulting are called “high risk or subprime lenders.”
Extremely high risk loans offered to people who would otherwise be turned down by banks have higher interest rates. That means they are more expensive overall. It’s better to ask yourself several questions before advancing with this option:
Use an online loan calculator to determine the cost of the loan (total interest). You just plug in the loan term, amount, and APR rate and the calculator does the rest.
Explore other alternatives such as credit cards, peer-to-peer loans, credit union loans, or a salary advance.
It’s expedient to approach a lender with a loan amount in mind. You can negotiate, and pick & choose loan companies suited to your needs.
Don’t misuse the funds as the loan costs you money.
Banks might require lots of documents as physical proof of your income. Online lenders also ask for documents when you borrow amounts of $5000 or more such as recent copies of your pay stubs along with a government-issued photo ID.
A default will cause the lender to hand you over to collection agencies. Most have been known to use unsavory collection practices like calling your family or friends. You’ll eventually get sued for breaking the contract terms. If the collection agency wins, you’ll have your wages garnished.
They are short-term credit options. You have less than 30 days to repay them. That’s because the payment coincides with your payday. It’s also the reason this type of loan is called a payday loan, cash loan, etc.
You might not get them in all 50 states. The District of Columbia along with 12 states prohibit them. While lenders may offer up to $1000, your state may cap the highest amount, for instance, California, $300; Alaska, $500; Alabama, $500; etc.
They are just like personal bank loans. You can borrow up to $5000 with poor credit or more if you demonstrate to the lender that you’re less of a credit risk because of your income or assets. The term ranges from 90 days to 60 months, but you might find a lending business offering a term of up to 72 months.
If you choose a personal loan, here are the benefits and drawbacks to expect.
|No minimum credit requirements||You may pay more in interest|
|Soft check to pre-qualify you||Failure to pay could attract late fees & NSF fees for failed ACH payments|
|No security is demanded.||Lower loan amount than traditional personal loans|
|Borrow up to $5000 in an emergency|
|Fast loan processing and funding|
|Most have no-prepayment penalties|
•Be a U.S. citizen or permanent resident holding a green card & SSN number.
•Be at least 18 years and above. In states like Alabama & Nebraska, you have to be 19. Check the lender’s website for age specifications.
•Have proof that you’re earning a stable income. You can provide pay stubs, bank account statements, tax forms, etc.
•Active checking account. A select number of lenders accept saving accounts.
•Working phone number or email address to receive further instructions.
•Living in a state where the lender offers loans.
Step 1: Find direct lenders
You need to find a business offering high risk loans. Lenders can be found by searching online. You might also come across a lender through an advertisement. Both of these options will consume time, and they are not very effective.
There is a better way. It entails applying through a loan matching service. The service doesn’t negotiate the terms on your behalf nor process the loan. That’s the role of the direct lender. When you fill out a loan application on a matching service, it’s forwarded to lending partners. The business that receives your details is the one to make you a loan offer.
Step 2: Receive the loan offer
The loan offer may specify the loan amount you can obtain along with the interest rate. You receive multiple loan offers at once when working with a matching service. Choose the product with the terms you like and proceed with the application.
Step 3: Verify your information
You might receive a phone call from the business. The rep will want to verify the amount you want to borrow. They might ask questions about any of your outstanding debt, for instance, if you have student loans or a mortgage.
The company might ask for some documents to be faxed, such as a copy of your driver’s license or government-issued photo ID. They might conduct a soft credit check that will not affect your score.
Step 4: Know if you have been approved
You might receive a communique that your loan has been approved. Signing the loan agreement is the next step. There is no wait time for documents to be sent through snail mail.
You sign the contract electronically. Just before you sign the contract, review all the pages carefully. Don’t rush into an agreement. In most lender reviews, you’ll often find customers complaining later about something they didn’t like.
Step 5: Receive funds
Get funds deposited to your account minutes after the lender approves your loan. Though, it might take up to 24 hours for the transaction to clear. Generally, you’ll get funds in less than 48 hours.
“Guaranteed approval” means that the chance of having your loan approved is quite high provided you meet the basic qualification criteria. Fill out your loan application at Just Right Loans and start receiving loan offers immediately.