While credit scores seem to be rising overall, younger generations average 100 points worse than older generations.
A majority of that difference is due to the fact that the age of your credit is a large factor of a credit score. So if you’re a student just starting out in life, you aren’t likely to have a long credit history or a high credit score.
But don’t worry. If you’re a student struggling to make ends meet and have a history of bad credit, there are loans for bad credit available that can help you out!
Keep reading to discover eight reasons that loans for bad credit may be perfect for you.
1. Available With Bad or No Credit
The biggest advantages for loans with bad credit is that they are available to anyone, no matter their credit score. These loans are often called guaranteed approval loans.
So if you have no credit or horrible credit, you don’t need to hesitate when applying for a loan. Most applications won’t even ask for your credit score. As long as you have the ability to make payments, your financial past isn’t a factor.
2. Quick Approval
If you have a sudden emergency or need cash quickly, these loans are the answer.
With online applications, you can apply from anywhere with internet connection at any time of day. All you need is your basic financial and personal information. The whole application process can be completed within minutes.
After you get approved, you can even receive your cash the very same day! Only a few minutes stand between you and financial assistance.
3. Use For Almost Anything
Loans for people with bad credit can be used for almost anything.
If you’re a student with bad credit, you can use a loan for your tuition, housing, or school supplies. These loans can help cut down the gap between what federal student loans offer and what you still owe for tuition.
But unlike student loans, you can also use these loans for other purposes. Get a loan to help you buy or repair your car, pay for a medical emergency, or just help you get out of a tough financial spot.
4. Don’t Require Collateral
Unlike collateral loans, bad credit loans aren’t secured. This means you don’t have to risk your home or car just to receive a loan.
This is very helpful for students or young people who may not have large assets under their name yet. Just because you haven’t been able to move into your own home, you can still qualify for a loan.
Because these loans don’t require collateral, they are considered less risky. You may pay a higher interest rate, but it’s worth it when you don’t lose your assets.
5. Plenty of Lenders
With bad credit loans, you aren’t limited to borrowing from one lender.
There are many online lenders out there willing to provide bad credit loans. With so many lenders, it’s important to do your research and find the best one for you. Take time to learn about specific lenders before you apply for a loan.
On top of multiple lenders, there are different kinds of loans you can apply for. Try applying for both unsecured bad credit student loans and installment loans.
Having all of these options allows you to search for the right loan. You won’t be left accepting a bad loan just because it’s your only option. Try applying through multiple lenders and their different kinds of loans.
6. Large Amounts of Money
Loans for those with bad credit can include large amounts of cash.
Most lenders will allow you to borrow as much as $5,000 per loan with bad credit. If you need more than that, you can always get several loans to cover your financial needs. Even though you may have bad credit, your loan amount isn’t limited.
But even though large amounts of money are available, you can borrow as little as $500. This means you never have to borrow more than you actually need to fulfill a loan requirement.
7. Can Improve Your Credit
The good news about bad credit loans? You won’t have bad credit forever.
If you take a bad credit loan and keep up with your payments, your credit score will start to rise. On-time payments are a large factor of your credit score.
Because loans for bad credit don’t require a credit check, a hard inquiry won’t appear on your credit score. These hard inquiries come with traditional loans and can negatively impact your credit score.
So as long as you keep up with your payments, your credit score will improve. This will open more financial doors for you in the future, allowing you to reap the benefits of more traditional loans.
8. Customizable to You
Along with being able to choose the exact loan amount you need, many lenders customize your payment plans.
Places like Bonsai Finance guarantee that your loan payment is never more than 10 to 20 percent of your monthly income. So even if you are waiting tables after your classes, you can afford your payments.
The loan repayment periods are also customizable. You can choose between payments for just a few months or up to 18 months. Your repayment period depends on your specific needs.
Loans for Bad Credit
Now that you know the reasons loans for bad credit are perfect for students, you should apply for your loan today.
Enjoy the benefits of quick approval, no use requirements, and improving your credit. Don’t end up without a degree because you think your credit is holding you back. Take advantage of a loan for bad credit.
Apply online today and receive your loan quickly.