A recently conducted government survey found that over 40 percent of all Americans struggle to meet their financial obligations. With figures like that it is no wonder that numerous people are currently wrestling with bad credit. In some cases, it can take less than a few months to see your credit rating plummet. Finding small loans bad credit lenders can help you get out of debt and regain your financial freedom.
Benefits of Small Loans for Bad Credit
Almost everyone has found themselves in need of short term funds at least once or twice in their lives. Events such as unanticipated medical emergencies or necessary vehicle repairs can quickly drain your savings. Even coming down with the flu for a week can keep you home from work, impacting your ability to pay for bills, groceries, or other expenses.
Small loans can give you the funds you need to cover these short-term expenses without high fees or interest rates. At Bonsai Finance, we can find you a lender with generous repayment terms, up to 18 months. We can also help you find interest rates you can live with and repayment terms that work for your life.
One of the biggest perks to this type of loan is that when you arrange it through Bonsai Finance, there are no security deposits, collateral, or post-dated checks required. This gives you the freedom to take out the loan and pay it back on your terms. Obtaining small loans can be the perfect way to get yourself out of debt altogether.
Finding Reputable Small Loans Bad Credit Lenders
At Bonsai Finance, we sit down and work with you to find a suitable lender. This begins by learning about your financial needs, your credit history, and your ultimate financial goals. Our consultants then find a lender in our network who can meet your needs.
When you are presented with lender options, you should keep a few things in mind:
- The amount of the loan offered – it needs to entirely or mostly cover your existing needs
- Your ability to repay – never take out more than 10 percent of your income
- What a reasonable timeline for repayment might be – most small loans have a maximum repayment time of 18 months, so be sure to keep this in mind
- The maximum amount you could afford to repay each month – it might be helpful to develop a budget in advance, so you know what debt obligations you are required to meet each month
- If there are fees for early repayment – if you are able to repay the rest of the loan in advance, you need to know if there are fees or penalties
How Small Loans Can Help
When you receive small loans from private lenders, you are free to use the funds however you want. Those with bad credit tend to invest this money into debt repayment or educational expenses to help improve their financial situation. Small loans can also be used for home improvements or required renovations to increase your home’s value, purchasing or repairing a vehicle, paying off medical bills, or even planning a much-needed trip to visit friends or family members.
There are numerous ways a small loan can help those with bad credit improve their situation. Finding a reputable lender is key, as it plays a big role on the among of the loan and repayment terms. Contact us at Bonsai Finance to learn more.