Now, you need money to pay off bills or rent an apartment. But you have a bad credit. Do not worry too much because you still get loans that are provided by banks as well as credit institutions. How to easily get bad credit loans? Please have a look into the article below.
Recent studies show that more than half of Americans have “poor credit” and 60 percent of Americans have less than $500 in savings. So if you are one of them and need money now, you are not alone. But where can you turn to borrow money with bad credit?
BAD CREDIT LOANS
This our article includes the main two parts which are: “What are bad credit loans?” and “How to EASILY to get bad credit loans?”.
1. What Are Bad Credit Loans?
Bad credit loans are personal loans available for people with poor credit or no credit history. This loans can be used for any purpose and help a person who has experienced bankruptcy, repossessions… to re-establish or establish a good credit history.
If a person or company has had difficulty paying back a loan in the past and they have bad credit, a financial institution may decide that it is not safe to lend them money. That does not mean they do not get loans for themselves.
If your credit is impressive, you will receive a less penalty on your loan (This penalty is the interest rate that you must pay based on your credit). In the recent, rates for bad credit borrowers can vary depending on the lender’s underwriting requirements.
Having bad credit means that you have a low credit score. Banks will normally look to give better rates to those who have better credit scores. What is the credit score?
In the United States, a credit score is a number based on a statistical analysis of a person’s credit files. FICO is the most widely used type of credit score.
FICO SCORE RANGE
| FICO RANGE | QUALITY |
|---|---|
| 720-850 | Great Credit |
| 680-719 | Good Credit |
| 630-679 | Fair Credit |
| 550-629 | Subprime Credit |
| 300-549 | Poor Credit |
From the table above, bad credit is simply a description of a borrower’s credit score. Generally, your credit is considered bad if your score falls between 300 and 630. The lower the score, the worse a borrower’s credit.
The biggest downside of this loan is the rate of its. Interest rates can peak at well up to 100%, sometimes reaching 300% depending on the lender. Therefore, you need to consider carefully before making your decision. If you do not have enough money to pay interest then you should borrow money from friends or relatives.
If you have a low credit score, it’s probably because you’ve either:
- Missed a bill or repayment in the past
- Never borrowed money or used credit before
2. The 4 Best Personal Loans for Bad Credit
| Lender Name | Borrowing Levels | Loan Terms | Minimum Credit Score | Interest Ranges | Origination Fee | Time to Receive Funds |
| Avant | $2,000 to $35,000 | 2 years to 5 years | 580 | 9.95% to 35.99% | 4.75% of loan amount | Two days |
| Best Egg | $2,000 to $35,000 | 3 years or 5 years | 640 | 5.99% to 29.99% | 0.99% to 5.99% of loan amount | Next day |
| Earnest | $2,000 to $50,000 | 1 years to 3 years | 720 | 5.25% to 14.24% | None | One week |
| One Main | $1,500 to $25,000 | 1 years to 5 years | None | 17.59% to 35.99% | Varies by state | Same day |
3. The interest, APR, Fees
- From 5.25% to 35.99% per annum
- APR: Max 36%/year
- A loan between 1 years and 5 years
Loan description table for Avant
| Loan Amount |
Term of Loan |
Fee |
Interest Rate (APR) | Expected Monthly Payment |
| $5,700 | 36 months | 4.75% | 29.95% | $230.33 |
Address and Call
- Address Avant: 222 N. LaSalle St., Suite 1700 Chicago, Illinois 60601
- Call: 800-712-5407
4. How to EASILY get bad credit loans?
Regularly, poor credit loans range from conventional personal, auto, and home loans with less-favorable terms to short-term, no-credit-check loans like payday and auto title loans. All have pros and cons, but some should be avoided entirely.
4.1. Personal loans
Traditional banks, financial companies, and credit institutions provide personal loans to bad credit holders. These loans are used for any purpose. The amount of lender will be willing to share with different amounts based on your credit and whether the loan is secured (no collateral).
If you want to do business locally (especially if you’re a longtime customer), credit unions can be a good choice because they might be more flexible with their lending criteria than bigger banks.
Note: Do NOT borrow from lenders who don’t thoroughly check your credit history, repayment ability, and other financial circumstances.
Secured loans can be a viable option. With this option, you’ll receive more favorable terms, such as a higher loan amount and a lower rate. However, you must be absolutely sure you can refund your loan on time or you could lose whatever collateral you’ve agreed to use (your home, car, or savings account…).
4.2. Apply online
You simply enter the purpose of the loan, the amount you need, your estimated credit score and your residence status to see immediately available lenders accept your application online right away now.
In short, owning a bad credit is undesirable. However, if you can, you need to improve your credit history to get the loan which meets your needs.
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Hillary (Team Content) – Bad Credit Loans