Do you have bad credit but still need access to cash? Sadly, emergencies don’t care if you have good credit or not. Bad credit can be a frustrating limitation in getting lenders to trust your ability to pay back timely. Most creditors prefer working with customers earning enough money to pay their bills and honor all terms and agreements.
But don’t scratch your head too much! The good news is it’s possible to get a personal loan with poor credit. Bad credit loans come with fixed ratings and are offered by lenders willing to loan you funds regardless of your limiting credit rating. The key is researching and finding affordable lenders that may even help you build your credit.
Read on to discuss prerequisites for loans for people with bad credit. You will learn about the kinds of loans which make the most financial sense for you and how to get them via iPaydayLoans.
Do Loans For People With Bad Credit Actually Exist?
Surprisingly, loans for people with bad credit do exist. First, to understand bad credit loans, you need to know the term bad credit, which is an individual’s credit score that’s less than perfect. When you apply for a loan, lenders are usually invested in your credit score, which hinders borrowers with poor credit access to these loans. On the bright side, some lenders offer loans for bad credit, allowing you to qualify for a loan even with poor credit.
Bad credit loans are secured or unsecured loans from lenders that cater to borrowers with a bad credit score. The interest rates, terms, and fees for bad credit loans vary by lender. Thus, ensure you shop for loan options that align with your needs, and iPaydayLoans exist for that purpose. Also, these loans can improve your credit score and present you as a credit-worthy prospect.
What To Do Before Applying For Bad Credit Loans?
Knowing what to expect before applying for a bad credit loan helps you sail smoothly through the process. Thus, keep these factors in mind when hunting for a loan;
Check your credit score
Before anything, keep tabs on your credit report and credit score to get a clear picture of your credit history and identify any negative marks on your record. That way, you can gauge which lenders you may qualify with, find ways to improve your credit score, and dispute any errors before applying for a loan.
Confirm you can repay the loan
With a bad credit score already in place, the last thing you want to do is add insult to injury. Hence, as you shop for loans, ensure you calculate the monthly payments and know when they are due. It helps you review your budget and plan out an achievable repayment plan.
Compare bad credit loan offers
Interestingly, while a bad credit score may attract the worst rate and terms, you may get a better deal from your bank or other lenders. Hence, to work with the right lender, review their interest rates, lender fee structures, and the provided terms. Reputable bad credit lenders offer a rate you can afford and tools to manage loan payments.
Pre-qualify for loans
Pre-qualification involves a soft credit inquiry that helps you find out if you will likely qualify for a loan. Through this process, you know what rate, loan amount, and repayment terms to expect. You can also evaluate several loan options, including fees and prepayment penalties. Talk to potential lenders, as most offer this feature.
Prepare for a hard credit check
After narrowing down your options and being ready to apply for a loan officially, expect the lender to trigger a hard inquiry. This will lower your credit score for a moment, so avoid applying for many loans at once. After receiving the loan, make timely payments to get your credit score back up in a few months.
What Loan Options Can People With Bad Credit Get?
Bad credit loans are only one of the options if you find yourself in an emergency. Some alternatives can help you become a more attractive candidate for borrowing. Below are several loan options you can qualify for with bad credit.
Payday loans are small loan amounts, usually $500, with short repayment periods, mostly within your next paycheck. They often carry high-interest fees and must be repaid in one lump sum. There are better options than these loans.
This type of loan lets you borrow a certain amount of money and pay it off over a specific period, usually months. Unlike a credit card which charges interest based on the amount you use, installment loans are given as a lump sum upfront.
Home Equity Loans
A home equity loan enables you to access your accrued home equity and use it as collateral for a loan. Like personal loans, the loan is disbursed in one lump sum and must be paid back in fixed monthly payments, ranging from 5 to 30 years.
A home equity line of credit (HELOC) loan is a revolving line of credit similar to credit cards. Consumers can borrow as much as they need but within a limit against their home’s equity. However, you’ll be charged varying interests based on your purchases.
Car Title Loans
Car title loans are short-term loans that lenders offer after a borrower uses their vehicle’s title as collateral to secure the loan. These loans must be repaid within 30 days or less and pose a risk of losing your vehicle if you fail to repay the loan.
What Are The Requirements To Get Bad Credit Loans?
Just like other loans, bad credit loans come with eligibility requirements. Otherwise, you’ll fail to qualify for a loan if you don’t meet the requirements. They include:
- Proof that you’re over 18 years of age.
- A social security number.
- Proof of US citizenship.
- A personal bank account registered under your name.
- Proof of regular income.
- Valid contact information.
How To Apply For Loans For People With Bad Credit
Applying for a bad credit loan is straightforward and involves filling out a simple online application form. Below are the three steps to get a loan on iPaydayLoans.
- Head to iPaydayLoans official site and select your preferred loan from the options provided on the top bar. Click Apply Now.
- Fill out the online application information by providing credible and sound information to increase your chances of securing a loan.
- Receive multiple loan offers and choose the one that suits your needs. Accept the terms and receive the loan amount directly in your account in less than two business days.
What Are The Benefits And Drawbacks Of Bad Credit Loans?
It’s necessary to exercise caution when applying for a loan, especially with bad credit. Scammers are usually too happy to take your money and make your financial life miserable if you get sloppy. Hence, closely examine the pros and cons of the situation before making the decision.
Benefits of bad credit loans
- Fast funding
- Unrestricted use of cash
- Easy and secure online application
- Guaranteed approval
- Many lender options
Drawbacks of bad credit loans
- High interest rates
- Fees and penalties
- High possibility of increasing debt
- Existence of unlicensed lenders
Q1. Are there credit checks to get a bad credit loan via iPaydayLoans?
Sadly, yes. You can’t get loans with bad credit without suffering at least a soft credit check. On the other hand, you can apply for no credit check loans, but many of these options are predatory, with extremely high-interest rates and fees, plus unfavorable loan terms.
Q2. How long can a loan for people with bad credit take to be disbursed?
Many lenders offer fast funding to qualified borrowers, usually up to two business days. Otherwise, some lenders may even deposit the funds into your bank account the same day you’re approved for financing.
Q3. How much loan can I get on iPaydayLoans with bad credit?
The amount of loan you can borrow largely depends on your lender, the kind of bad credit you choose, and if the lender considers factors other than credit score. However, loans typically range from $500 to $35,000.
Q4. What are the common uses for bad credit loans?
There are no restrictions to how you can use bad credit loans. But, they are usually used for emergencies, like home renovations, medical emergencies, and car purchases. Also, they come in handy when you need cash from time to time as you wait for your next paycheck and if you need to consolidate a loan.
If you’ve stuck with us to the end, we hope our article gave you some valuable information. Getting a personal loan while you have bad credit is draining and more expensive than acquiring one with good credit. So, digging deeper and comparing shops is essential to ensure you get the best deal possible. Luckily, iPaydayLoans offers the platform to access multiple lenders and strike a deal.