During this time of economic difficulty and uncertainty, it’s understandable if your credit rating is beginning to take a hit. Maybe you had to pay less than the minimum amount due on your credit card last month. Maybe you had to miss a mortgage payment or two last year. Maybe you maxed out the credit limit on all your existing credit cards. However, what if you find yourself suddenly needing emergency cash to bail you out of a sticky situation?
If you’re worried about negative credit rating standing in your way of getting access to funds, then loans with bad credit is the answer to your problem.
This is a type of loan that is unsecured (meaning no collateral) and is specifically designed for people who either have no credit or poor credit ratings. These are people who would have a very hard time trying to get a conventional loan from banks or other major lending companies. Even with really bad credit due to car repossession, debt management issues and even foreclosures, you can still get loans with bad credit if you know where to look.
Companies that offer this type of loan usually approves loan amounts ranging from USD1000 to USD2500. Repayment period is typically very short – ranging from 30-60 days, so you need to be able to raise the money quickly. The interest rate for loans with bad credit is typically higher than what you would get from a bank. But of course, this interest rate hike is quite understandable since the lending company is taking a risk on lending you money despite your bad credit rating.
Also, remember that loans with bad credit do not require collateral, so the company needs to mark up the interest rate offered to the clients in order to recoup some of the potential losses should someone default on the loan.
The great thing about such loans is that the processing time is very, very quick. In some cases, you can get loan proceeds in your bank account on the same day that you applied. The company would just automatically transfer the money to your account. If you don’t get the funds on the same day, then you would surely get it the next day, making this kind of loan ideal for dealing with emergency expenses such as hospital bills.
The eligibility criteria for this type of loan are very easy to meet. You just need to be 18 years old and older, have a monthly salary of USD1000 and have an active bank account. You only need to go to the website and apply online, wait for the confirmation call and then check your bank account after a couple of hours to see if you received the funds already. Make sure you only select a reputable online lender though.
However, you must remember that you should only take out a loan if you are sure that you can repay for it. Otherwise, penalty fees and finance charges would only pile up, and your credit rating would suffer even more. Also, remember to use the loan amount wisely. If you took out a loan to pay for tuition, then don’t be tempted to use it to shop for new shoes or clothes.