Many who have badly damaged credit (or who lack a significant credit history) wrongly assume that they cannot get a fast-cash loan when they find themselves in a difficult situation.
While a bank loan may not be obtainable and you may not even have or qualify for a credit card, none of this need prevent you from getting a loan. There are many cash loans online available for people with bad credit, primarily of two types: payday loans and installment loans.
Payday Cash Loans Online for Bad Credit
Payday loans, even when secured online, will still involve a credit check. But lenders will generally base approval on your ability to repay (income level) and on your having a U.S. bank account rather than on your credit history.
Lenders of payday loans typically only allow loan amounts of around $100 to $1,000 and require repayment within two weeks or month at most. The loan will have a high interest rate and may require some form of collateral.
The benefits of online payday loans are you can get the cash within only a couple hours, can use the money any way you please with no questions asked, and do not need good credit. The drawbacks are the heavy penalties for late repayment, the high interest rates, the limited amount of cash that can be borrowed, and the limited amount of time for repayment.
Installment Cash Loans Online for Bad Credit
Personal loans, which are also usually installment loans, are also commonly available online for those with bad or no credit. These loans have a number of benefits that make them superior to payday loans in most situations.
The borrowed cash can be deposited in your bank account within 24 hours in most cases (or the next business day), while a bank loan could take several business days to complete.
Personal installment loans do not require collateral. The online application form will only require basic personal information and bank account information. And many online loan brokers can match you to the best lender that fits your situation.
A quick credit check will be run, but you will likely qualify, though bad credit may affect the loan terms. Instant approval is the rule. There is no need to wait for hours or days to get an answer.
Installment loans can be secured for up to $5,000 in most cases, and you can pay back the loan in regular installments over a few months or a few years.
Those with bad credit can still find many cash loans online that will allow them to get fast cash in an emergency. Payday loans and installment loans are the most common fast-cash loans for bad credit.