Do you need to consolidate high-interest rate credit cards or do you just need emergency cash? Either way, there are options even if you have a bad credit. Many lenders offer loans as high as $35,000, with the most popular amounts ranging between $1,000 and $5,000. Sometimes you can get paid as fast as one day after you submit your application for a loan or even the same day, although the timing varies depending on your lender. The popularity of smaller loans for bad credit is on the rise, and many people are opting for these loans as a means of fulfilling their short-term needs.
For you to secure these loans you should meet the following requirements:
- Own a checking account
- Be above 18 years
- Have a minimum of $1,000 monthly income after taxes
These are applicable to payday, installment and personal loans.
Three types of loans to consider
- Payday loans: Repayments are normally structured as lump-sum payments with a duration of 15 to 30 days. Any credit score is welcome.
- Installment loans: These are paid back in installments, as quickly as 90 days or up to 1 year. Popular sums to borrow range between $1,000 and $5,000. There’s often no hard credit check and lenders typically accept low credit scores.
- Personal loans: Borrowers can receive high amounts up to $35,000, paid back over a period up to 6 years. They normally have low interest rates starting at 6%. Lenders use a hard credit check that affects your credit score and requires a good credit score to secure. Applications might take longer to process, depending on the lender.
Convenient for Urgent Financial Needs
Payday and installment loans are loans with a near instant decision time, you quickly know if you’re approved or not. Even if you’re working, you might face a sudden financial issues that needs a quick response. These situations may cause you to look for an advance even if your salary is just a few days or weeks ahead.
For instance, if you urgently need to repair your car and you don’t have enough cash, you may be forced to seek a loan. When your needs are pressing, a payday loan might work out perfectly for you. Such loans are quick and convenient, especially when you can’t access credit. Most lenders offer emergency loans online, so there’s no need to visit any bank or store. Even when you’re unemployed or between jobs, it’s possible to secure a guaranteed loan.
Payday & small installment loans offer benefits including:
- Quick acquisition – it’s really simple to secure these loans.
- No hard credit checks from major credit bureaus are required. However, your lender may conduct some checks to verify your income.
- Can help your credit score by allowing you to settle your monthly bills in time
- Bad credit loans allowed
- With installment loans, choose a repayment plan that works for you from several available. After you submit your application, your direct lender will present options.
Credit checks vary depending on your lender and the type of loan you’re applying for. A soft check is more like a background check and doesn’t appear on your credit report. These are common for certain types of loan applications, as well as employment and rental applications.
What is a hard credit check?
A hard check, on the other hand, goes a little more in-depth with your credit history. You also need to give your permission for a hard pull on your credit report. It can cause a temporary dip in your credit score and stays listed as an inquiry for two years.
What are lenders looking for?
Lenders typically like to see on-time payments to show that you’re likely to repay your new loan on time. They might also look into how much debt you currently have to see if adding on anymore would be overly burdensome for you to keep up with.
Do all lenders perform a credit check?
In some cases, lenders may not perform a credit check at all. This is especially true for payday loans and short-term installment loans. Instead of checking your credit, they emphasize your income verification.
Credit checks can be an important part of the loan application process, but not always. It really depends on your lender and the type of loan you need.
The cost might be around $10 to $30 for a $100 payday loan. For instance, a two-week payday advance can attract an interest rate of $15 for every $100. The amount you can borrow is influenced by state laws. Different states have different laws governing the issuance of payday loans.
For installment loans, common rates are between 5.99% to 35.99%.
There are no financial guarantees in life. You may encounter an urgent financial need which will prompt you to seek a loan. In fact, it’s common for anyone to need loans for emergency help at some point.