You find yourself strapped for cash and your payday is still a few days or weeks away. You have an emergency to deal with or need extra funds to get by. This scenario is not uncommon. Many people who live paycheck-to-paycheck experience this financial situation from time to time. And to solve such situation, most people get a loan.
If you want to know more about how to get a loan to deal with financial situations, here are some of the most frequently asked questions you might want to read through.
I Want to Get a Loan. Where Do I Start?
Ideally, start with learning about your credit rating. If you have a stellar credit rating, you might be able to get emergency loans from banks. Banks usually offer quick personal loans to those who have a good credit record. These emergency loans are usually released quickly to help you deal with urgent financial situations.
You are entitled to get a free credit report from the three credit bureaus: Experian, Equifax and TransUnion. However, to access your credit report from these three main credit reporting agencies, it usually takes days to weeks. There are, however, other avenues where you can access your credit report instantly but you might have to pay.
What Do I Do if I Have Bad Credit?
The truth is, it is difficult to get a loan from banks and other traditional lending institutions when you have poor credit or no credit history. While some traditional lending institutions offer loans for people with bad credit, these loans are usually secured, which means the borrower pledges an asset as collateral for the loan.
So to answer this question, you have to first assess your financial needs and your eligibility requirements. Is your financial need somewhat urgent? If yes, how urgent? Do you need the money tomorrow? Or can your problem wait until your money arrives?
Then, assess your eligibility. You were turned down by banks because of your bad credit… but do you have any asset to present as collateral to get quick cash unsecured loans from banks? If yes, are you willing to risk it just to get a loan from banks?
Assessing your financial problem as well as your financial situation gives you an ideal on the financial solutions available for you.
So, Can I Get a Loan with Bad Credit?
YES. Fortunately, there are plenty of lenders that offer personal loans for people with bad credit. If you have bad credit and have no asset to pledge as collateral to get a loan from banks, you can turn to bad credit lenders.
These lenders usually offer personal loans for people with bad credit. As the term suggests, this loan can be used for any personal purposes. You can use personal loans for any unforeseen expenses such as a medical emergency, car repair or school project.
Also called bad credit loans, these personal loans are also specifically designed for bad credit borrowers who have been declined by mainstream lenders.
What Should I Know about Bad Credit Personal Loans?
Bad credit personal loans are unsecured short-term loans. You don’t need collateral to get a loan of this kind. However, you should keep in mind that these loans have short repayment period of within days to a month, although some lenders offer up to six months.
In addition, bad credit personal loans are small loans offering from $100 to $1500. Needless to say, loans like these are ideal for personal purposes that are temporary in nature. For instance, you need extra cash to pay for an unforeseen expense such as car repair, urgent family trip, unexpected bills, etc.
You might also want to keep in mind bad credit personal loans usually have high interest rates. This is justified by the fact that these loans are for bad credit borrowers, which are considered “high risk” borrowers by traditional lending institutions.
I Need Quick Money. Can Personal Loans Help?
Bad credit personal loans offered by online lenders are usually quick financial solutions. Also called “quick loans” or “overnight loans”, online bad credit loans are usually released in minutes to 24 hours. So to answer this question: Yes, personal bad credit loans provide quick financial relief during emergencies. If your need for money is quite urgent and you have nowhere else to go to, this type of loan is a viable option.
How to Get a Personal Loan with Bad Credit?
To get a loan of this type, you need the following:
Proof of income (pay slips, Income Tax Return)
Proof of identity such as driver’s license, employment ID or passport
Proof of address such as your utility bills
You are 18 years old and a US citizen or resident
These are usually the requirements required by lenders. Some lenders, however, require you to have an active bank account where you will claim your money and from where your payment will be deducted on your due date.
The process of getting a personal loan with people with bad credit is also simple. Just go to your lender’s website, fill out an application form, and send over the requirements. The process usually takes minutes up to a day. Once you have completed the application process, your requirements are verified and you qualify to get a loan, you get approved within the same day.
Where to Get a Loan with Bad Credit?
There are different sources for bad credit loans. As mentioned earlier, if you have an asset to present as collateral for your loan, you may be able to get a loan from banks. Otherwise, there are online lenders that specialize in loans that don’t require good credit score and collateral.
Where to get a loan with bad credit? On the internet. There are a lot of reputable lenders to go to for such services.
Where to Get a Personal Loan with Bad Credit?
Online. Most online lenders offer personal bad credit loans. These loans are also sometimes referred to as online loans, payday loans, quick cash loans, installment loans, or unsecured loans.