Does having a lower than average credit score mean you can’t get a loan or can’t get a good loan? Not at all! There are an abundance of low credit score loans available online that can help you get through financial difficulties.
Of course, it’s important to carefully select your loan and your lender. You’d be surprised how many viable options you still may have despite having a somewhat rocky credit history in your past.
What Are Low Credit Score Loans?
Many banks won’t approve you for a loan of any kind whatsoever if you have a damaged credit history or no significant credit history at all. But there are low credit score loans put out by many online lenders that you can almost certainly get approved for.
Having bad credit may mean you have to pay higher interest to some extent or affect fee rates, but it has little effect on other aspects of your loan. And it shouldn’t be a determining factor when it comes to loan approval.
Lenders will look more at your verifiable, regular income level than at your credit score. They are interested primarily in your ability to repay the loan on time and not in whether or not you have perfect credit.
Payday Loans Or Personal Loans?
Your two most suitable options with low credit loans are payday loans and personal installment loans. Both of these are quick cash loans where the money will be directly deposited to your bank account and ready for immediate use – in any way you choose (no strings attached.)
However, in other ways, payday and personal loans are basically at opposite ends of the spectrum. The payday option is best suited for situations where you can repay within 2 to 4 weeks’ time and need to borrow anywhere from $100 to $1,000. Personal loans, by contrast, give you multiple months to repay and typically have loan principals of $1,000 or more.
You will pay higher rates with payday loans, but over a shorter term and lower rates with personal loans over a longer term.
Rebuilding Your Damaged Credit
On-time repayment will be reported to one of more of the major credit bureaus, which will have a positive impact on your credit history. Since personal loans include multiple payments, their impact on your credit score tends to be greater than with payday loans.
Finding The Best Low Credit Score Loan
With so many online lenders offering loans to people with bad credit, how do you know which lender to trust or which loan offer is truly a better deal? It’s difficult to check the details of each loan offer when you have to keep skipping from website to website, reading the fine print.
Review sites are one solution, but these are limited in that their sampling is often too small – and they may be secretly biased. Going by word of mouth is dangerous because, while it may steer you towards a good lender, it can’t shed light on which is the best lender.
This is where Bonsai Finance steps in. We specialize in matching consumers in search of a loan with lenders and loan offers that give them the best possible terms. We can help you search for specifically low credit loans, and within those parameters, for the loan with the most favorable features.
Our search engines, resource library, and helpful staff members combine to make Bonsai Finance the premier place online to search for the best low credit score loans.
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