Poor credit loans are designed to help people with no credit or whose credit has been damaged. Although you might think that your options are limited if your credit is less than perfect, there are a variety of loans available that can help you get cash fast.
Poor Credit Loans Give You Choices
In an ideal world, everyone’s income would always exceed his or her expenses sufficiently to permit a comfortable savings account. There would be no financial emergencies; vehicles would never break down unexpectedly, no family member would ever need an unscheduled doctor’s visit and the air conditioner would not go out in the middle of the decade’s worst heat wave.
Unfortunately, the world is imperfect. Few Americans have never encountered a cash shortage of some type. In many cases, the shortfall occurs at the worst possible time. For example, the refrigerator may go out the day after you paid to have your washing machine repaired.
Decades ago, someone with poor credit had limited options. There were pawnbrokers and loan sharks if friends and family members could not help. Millions of hardworking Americans were denied access to credit due to even small issues on their credit reports.
Things have changed a great deal in recent years. Many lenders recognized the problems that people with damaged or nonexistent credit faced when confronting a financial challenge. They began offering several types of loans for people with poor credit. These new types of credit products can be a part of a sound financial plan.
Types of Available Loans with Poor Credit
Although they go by several different names, loans with poor credit typically fall into one of two categories. There are short-term loans that require full payment within 15 to 60 days; cash advances and payday loans belong in this category. There are also loans with longer repayment terms that allow you to make monthly payments of identical or nearly identical amounts until the loan is repaid. This category includes unsecured installment loans and personal loans.
Loans for People with Poor Credit Offer Solutions
Loans for people with poor credit may be more expensive than loans made by banks and credit unions to people with excellent credit. However, when compared to the price of not having the money that you need to deal with a crisis, the fees and interest rates charged by lenders may seem an acceptable expense.
As is true for any credit product, however, you should have a plan for repaying the loan prior to submitting an application. Used wisely, poor credit loans can help you solve your financial challenge. There are even some lenders who report your payment record to the credit bureaus, helping you build or repair your credit rating.
Poor Credit Loans Offer Simplicity and Speed
Loans for people with bad credit offer a fast, easy application process. The application can be completed online in as little as three minutes. Many lenders do not require you to fax documentation. Decisions can be made quickly, sometimes in just a few minutes.
You can submit an online application from the comfort of your own home and at the time that works best for you. If approved, your cash will be deposited directly into your bank account, eliminating the need to wait for a check to be mailed.
If you are facing a financial problem, there is no reason to continue to stress over it. Instead of enduring another sleepless night – get started now.
What You Need to Know About Loans with Poor Credit
Loans with poor credit can offer a much-needed financial lifeline. However, before you apply for a loan, there are a few things you should know.
• Poor credit loans are intended to be short-term solutions. They are not an adequate substitute for careful budgeting and financial management.
• You should never borrow more than you can reasonably repay without placing unwarranted strain on your finances.
• Installment loans are typically for higher amounts than payday loans. Some lenders offer installment loans online for as much as $5,000. However, not every applicant can qualify for this amount.
• Few lenders will approve poor credit loans for applicants who do not have a source of income. Most lenders require that applicants either be employed or receiving a monthly income from retirement benefits, an annuity or other source.
• Lenders who offer loans with poor credit can also be valuable sources for people with good or excellent credit. The process is often faster and more convenient than applying for a loan at a traditional lending establishment. Some borrowers who have credit cards prefer loans over credit card debt.
• Poor credit loans for business purposes typically have different criteria than personal loans. For example, a lender offering business loans may require a credit check and/or collateral.
• For poor credit loans under $1,000, most lenders rely on their own internal system to assess your credit worthiness. For loans over $1,000, however, some lenders will obtain your credit report as part of their internal assessment.
• Lenders are subject to various regulations enacted by state, municipal and federal agencies. Never ask a lender to resort to subterfuge to circumvent the law.
Loans for People with Poor Credit at a Glance
• Apply online 24/7 from home.
• Applications typically take less than three minutes to complete.
• Decisions can be made quickly, sometimes in less than three minutes.
• Those on a fixed income may quality for a loan from some lenders.
• Applications accepted from those with bad credit, bankruptcies and no credit.
• Some lenders do not require you to fax documentation.
• Personal installment loans are available up to $5,000.
• Payday loans are typically under $1,000.
• Because loan proceeds are deposited electronically, you will probably need an open bank account to receive the direct deposit.
You deserve access to the system of credit enjoyed by Americans for so many years. Do not prejudge your credit and assume that your less-than-perfect credit history will prevent you from securing the money you need or want. If you are ready to take care of your problem, get started now.