Do you think that a non-bank lender grant very bad credit personal loans is a nuisance – or does it really exist on the internet? It has left many loan seekers a riddle to solve as many would blindly apply for such loans online. You might be thinking whether there are such non-bank lenders who are willing to accept clients with extremely low credit history, and bear the risk of having clients who have higher chances of neglecting their loan repayments.
Therefore, you can see many online advertisements with common taglines like “Fast Guaranteed Very Bad Credit Personal Loans With No Credit Check”, “Fast Approved Loans For Bad Credit”, “Fast Loan Without Collateral” and many more. It seems that getting such financial solutions is like a piece of cake or it could be a gimmick to lure desperate loan seekers to fall into scam artists’ trap.
Let’s demystified the “Very Bad Credit Personal Loans” issue to find out whether it is a fact or a myth.
It is indeed a FACT because:
- It could be a payday loan – Such loan has unreasonable interest rate (APR) applied (and it could be more than 100 percent) and it can be extremely difficult to pay off if you are financially unstable. You’ll be shocked when you know that the actual APR can be more than 300 percent! Many are tempted by instant approval loans without knowing its astronomical APR applied.
- It could be a co-signer personal loan – Although the lenders are offering very bad credit personal loans with no credit check on their applicants, they will consider their clients’ application based on the creditworthiness of the co-signer (or guarantor). If the guarantor has a good financial status, the lender will likely to grant higher loan amount to the applicant.
- It could be an unsecured personal loan – If you have come across online ads like “Very Bad Credit Personal Loans Unsecured”, “Unsecured Personal Loans Bad Credit” and many more, some accredited non-bank lenders offer such unsecured loans for those who are unable to put up collateral. Similar to co-signer loans, lenders will only approve based on the creditworthiness of the applicant.
It is indeed a MYTH because:
- Lenders will normally evaluate their loan applicants’ credit score before they start granting loans – Do not attempt to seek loans from lenders who do not perform any credit check on loan applicants and guarantor (for co-signer loan application). Reputable non-bank lenders even perform credit check on their loyal clients –it has no exception for them to apply for very bad credit personal loans based on the loan requirements.
- It is an illegal loan practice when lenders approve loans spontaneously on the phone – Some online ads displaying taglines like “Fast Approval Loans Within An Hour/A Minute”, “Fast Approval Loans On The Phone” and many more, show that these lenders are actually providing misinformed content to consumers. Based on Federal Trade Commission (FTC), it is an unlawful act to provide misleading information to consumers as well as approving loans spontaneously on the phone.
- Such loans are offered by lenders who have low Better Business Bureau ratings – Some lenders are practicing unethical lending services by providing very bad credit loans without following proper loan lending procedures. This explains why some of these lenders received tremendous low BBB ratings.
Be sure to spend more time on researching for the best non-bank lenders that offer legitimate very bad credit personal loans.None found.