More than 30 percent of Americans have bad or poor credit, which is generally any score lower than 601.
In an economy where commercial or formal lenders love to play tough with borrowers, you need an excellent score to stand a chance of getting a loan. If your score is not excellent but good, you might still access credit facilities, but at unfavorable terms.
So, what of those with poor credit? Does it mean you will never be able to access loans?
Don’t despair, because help is on the way!
Here in this article, we’re telling you about online loans for poor credit, and what you can do to get them. Read on!
Designed for Bad Credit
Online loans for poor credit are designed for just that; poor credit. There is a good reason for this.
You see, having bad credit doesn’t necessarily mean you’re a broke person with no financial muscle. It certainly means that you made some financial mistakes in the past that hurt your score. Perhaps your lost your job temporarily and wasn’t able to honor all your payments. Before you knew it, your otherwise excellent score had tanked.
And unfortunately, repairing a bad credit takes time. If you happen to need a personal loan while your credit is still in the trenches, no traditional lender will listen to you.
This is where online loans for poor credit come in.
The providers are not interested in your score. All they want to know is your ability to repay the loan you’re requesting. This means you have to provide proof of a regular income.
The Loan Amount and Interest Rates Are Not Based on Your Credit
Now that you know you can get a loan with bad credit, you certainly want to know the maximum amount you can access, as well as the interest rates.
If you have borrowed from a traditional bank, you know very well that your credit score can influence the amount. If your score isn’t bad but doesn’t please the bank either, expect it to reduce the amount you can get. Needless to say, if you needed $10,000 and only get $5,000 from the bank, you may be unable to solve your problem.
Similarly, you can be charged higher interest rates if your score isn’t good enough.
When it comes to online loans for bad credit, none of these pertains. Again, all the lender wants to know is your income and ability to repay. If you prove that you can pay the amount you’re requesting, you’ll get it. Also, nobody will hike the loans interest rate because of poor credit.
Everything Is Done Online
Even though traditional banks are gradually embracing technology and digitizing their loan request processes, requestors still need to file lots of boring paperwork.
On the other hand, the request form for online loans for poor credit is 100 percent digitized. In fact, don’t expect to spend minutes on end filling out lengthy forms and answer questions that invade your privacy.
In a few short minutes, all you will provide is personal identification and financial details that the lender needs to make a decision. Say goodbye to invasive questions forever!
Some of Your Credit Information Might Be Required
Wait, but you just said nobody cares about my poor credit?
Before you hold your breath and quickly dismiss this article as a waste of time, allow us to explain.
Yes, during the request process, you might be required to disclose some information about your credit status. But – this is important – the information is only visible to you!
Here is why this is important.
When you request credit from a tradition bank, this information will show up on your credit report. This is how other lenders know whether you’re currently servicing any loans.
If you make multiple requests and they all (or some) get rejected, this information can send an important message to your next potential lender. It certainly means you’re in financial stress, and all the lenders you have approached think you’re a risky customer.
Essentially, this makes it even harder to get loans from the traditional lenders you haven’t approached.
Thanks to online loans for bad credit, you can submit your request without worrying about the information appearing on your report.
Incredibly Quick Approvals
We all know the drill when dealing with traditional banks. They will promise to review your request quickly, but do the exact opposite.
When you’re hard-pressed for cash, you don’t have the luxury of waiting several days to get your loan approved. Even after it’s approved, some lenders need at least a few days to disburse it into your account.
Bid such inconveniences eternal goodbye by embracing online loans for poor credit. Reviews and approvals are incredibly fast. If you qualify, you can even get your money as soon as the same day!
There Are Different Types of Online Loans for Poor Credit
Various online lenders offer different types of loans for bad credit.
You can get a payday loan, which is payable on the day you’re paid. The amount will typically be deducted from your salary.
You can also get a personal or unsecured loan. With this facility, the lender won’t ask you to state the purpose of the loan, nor will you be required to attach any collateral.
Online Loans for Poor Credit Help You Get Back on Your Feet
Just like the economy and its recession and peak cycles, our personal finances will be great at some points, and sometimes in a depression.
When you’re financially stressed, it can be easy to fall squeezed up against a wall, especially since banks and other traditional lender shun their back on you.
The good news is there are online loans you can secure. Thanks to this post, you now have all the information you need to fire up your computer or mobile device and begin your search.
Speaking of search, why don’t you start with us? We’ll do our best to match you with the best online providers of these loans.