Bad credit personal loans are fixed rate unsecured loans for borrowers with a low credit score. Loans can be approved without a hard credit check, making them easier to get even if the applicant has a bad credit history. The borrower pays back the loan in equal installments for the term of 2 – 60 months. The usual loan amount does not exceed $10,000. Personal loans for bad credit are good for debt consolidation, home repair, wedding, medical bills, and other major purchases. The APR for these loans is higher than for loans for borrowers with a good or excellent credit history. Lenders take more risks due to the fact that borrowers have a higher chance of defaulting on a loan.
Loans For Bad Credit FICO Credit Score
A credit score is a number that shows one’s creditworthiness. There are several types of credit score, but the most popular is the FICO score that is calculated based on credit history records. The image shows the main points that affect credit rating. A bad credit score means a poor credit rating. For lenders, this results in more risks of missing payments or defaulting. As a result, borrowers with bad credit get small loan amounts at high APRs.
In order to prevent bad credit, one should avoid paying the bills late or not paying at all, defaulting on a loan or missing payments, using a full credit card limit, applying for several credit cards or loans at once.
Why Bad Credit Personal Loans Could Be The Right Choice?
Personal loans have many perks. They can be a good option for those, who can’t take a traditional loan from the bank or credit union. The main benefits of bad credit loans are:
- Soft pull credit check that doesn’t affect traditional FICO score;
- Great options for building or rebuilding credit history;
- Larger loan amounts, longer repayment time and lower APR;
- Easy to apply, fast approval and fast funding;
- No risk of becoming a victim of a predatory lender! Save and secure!
How Are Unsecured Loans For Bad Credit Different From Other Loans?
When somebody needs emergency funds, the existing types of loans might be confusing. Personal loans are confused with payday loans and installment loans. All these loans can be approved with bad credit. Let’s check the differences between them.
Payday loans are for a very short term and must be paid back in full within in 14 – 31 days. The high fees make this type of loans potentially dangerous.
Installment loans are fixed rate loans paid back over several months. The repayment term is more flexible and the interest rate is not as high for cash advance loans.
Personal loans provide a larger loan amount for a longer term of up to 60 months. With lower rates and fixed installments, they are easy to manage. These are a great option for building or rebuilding credit.
What Loan Options Do People With Bad Credit Have?
The number one priority for those with bad credit is to improve it. Until that happens, there are still some alternative ways of getting loans.
Credit Unions Smaller than banks, they offer loans with better conditions than short-term loans lenders. Members can get a personal review of their financial needs and get custom tailored rates, repayment terms and loan amounts.
Friends or Family Borrowing from those close to you might be a good option. However, borrower may need to explain the need for the money.
Peer-to-Peer Lenders Convenient platform both for lenders and borrowers. Individuals estimate the risks and bid for the borrower’s loan giving fair rates.
Car Title Loans One may get money, drive a car but keep it as a collateral. This is expensive and risky, since the owner may lose the car if the loan defaults.
Secured Loans Collateral loans involve security in the form of the borrower’s assets.
Co-Signer Loans This type of loans is secured by the person who guarantees for the borrower.
Online Services Apply for a personal loan for bad credit on DirectLoansLenders and get a dozen offers with one single application. Get up to $15,000 fast!
What To Know Before Applying For A Loan!
There are some things to know before applying online for any bad credit loan. Applicants have to research the highest interest rate, penalties fees, originating fees and other charges. Lenders have to provide all borrowers with certain information regarding overall repayment amount, monthly payments, and the loan term. Another thing to check is whether the lender can automatically deduct money from a bank account. In some cases, automatic payments may lower the loan rates.
No matter what rates and promises were provided by the lenders, all applicants must clearly assess and understand their ability to pay back borrowed money. Can’t repay? Don’t borrow!
Getting Bad Credit Loans Is Easy!
1. Submit Application Applicants start with online application form, that requires name, phone, address, job, income, and bank details.
2. Get An Offer Our team sends the application to several lenders to get a better loan offer.
3. E-sign The Contract Applicant must read understand the terms of the loan agreement, including all the fees, charges, and repayment options.
4. Receive Money Once the lender approves a personal loan request, money will be deposted to provided bank account within one business day.
How To Avoid Bad Credit Loans Scams
Nobody is secured against loans scams or predatory lenders. However, DirectLoansLenders offers some ways to avoid them. Here are the most important ones every applicant should do before applying.
- Always apply on a website that is secure. Its address should begin with https and the website must look reliable and clean.
- Do a simple Google search and look for customer reviews about specific lending company.
- Check for a physical address and state license of the lender. Verify the contact details by making a phone call.
- Stay away from high APR loans with unlimited renewals. Unclear loan terms with no repayment plan is a bad signal!
- Never apply with lenders who give “no credit check loans”, “guaranteed loans”, “instant approval loans”, “same day loans”. Most likely it’s a scam!
- Each lending company must provide all details regarding fees and charges, APR, late charges, processing and originating fees.
Why Choose Bad Credit Personal Loans Offers From DirectLoansLenders?
People usually need loans fast. They need a solid partner who can offer a personal loan despite bad credit quickly. DirectLoansLenders offers all that and even more!
- Free online application with no obligations!
- Quick lending desion and fast deposit of funds.
- Multiple personal loans options for any reason.
- We promote responsible lending!
- We protect our customers from predatory lenders.
- DirectLoansLenders offers expert support team!