The person who has a bad credit score is usually are restricted mode when selecting the loan options. With bad credit, how to get a loan to solve personal financial problems? Nowadays, there are many lenders such as banks, credit unions, and other institutions provide personal loans for people with bad credit.
In the previous article, we introduced you to the most detailed and complete information about bad credit loans. If you are interested in this issue, please visit the following article link: Loans for people with bad credit or other articles on the same topic.
PERSONAL LOANS FOR PEOPLE WITH BAD CREDIT
This our article includes the main four parts which are: “What are personal loans for people with bad credit?”, “How to get personal loans for people with bad credit”, “The interest of personal loans for people with bad credit?” and “The advantages and disadvantages of personal loans for people with bad credit”.
1. What are personal loans for people with bad credit?
If you have a bad credit score, one that’s below 630, it will not have to keep you from getting a personal loan. What are personal loans for bad credit?
Personal loans for people with bad credit are personal loans that provided by lenders such as banks, credit unions… for whom have a low credit score between 300-549 (FICO score).
Readers should refer to some characteristics of personal loans for people with bad credit below:
- Paying higher interest rates than normal
- You have not tried to pay on time and are not satisfied with payment high-interest rates
- Late payments for housing, utilities or other monthly bills
- Checking account is overdrawn on a regular basis
- Have problems getting a lease for housing
- Cell phone companies won’t give a contract
People use these personal loans for people with bad credit for any purpose, such as:
- Buying a car
- Taking a holiday
- Doing renovations
- Moving home
- Consolidating debt
- Funding a wedding
- Medical bills
- Vet bills
- School fees
- Legal fees
2. How to get personal loans for people with bad credit?
Each form of online loans has its own advantages and disadvantages. So you need to think carefully before making the final decision. Make sure that you have enough ability to pay your debts and monthly fees on time.
With a simple and secure application process from any device, first-time customers can have $500 – $2,600 cash in their pocket as soon as the next business day.
2.1. Bad credit loans
The advantages of a bad credit loan:
- Even those with bad credit can qualify.
- It’s easy to get pre-approved.
The disadvantages of a bad credit loan:
- Interest rates are extremely high.
- Usually, a limit exists to the amount you can borrow.
2.2. Credit union loans
The advantages of a credit union loan:
- This lender offers more relaxed lending standards than traditional banks.
- Applying interest rates as well as fees is less than traditional banks
- Unsecured loans for people with bad credit are available.
The disadvantages of a credit union loan:
- Borrower’s credit score and loan type limit how much he or she borrowed.
- Unsecured personal loans have shorter loan periods.
Credit Union Loan Rates with Bank Loan Rates
|Type of Loan||Credit Unions (National Avg.)||Banks (National Avg.)|
|Unsecured Fixed Rate Loan, 36 months||9.24%||10.14%|
|Home Equity Loan, 5 Years, 80%||4.40%||4.97%|
|Home Equity Loan, LOC, 80%||4.07%||4.39%|
|Used Car Loan, 48 months||2.79%||5.09%|
|New Car Loan, 48 months||2.61%||4.58%|
2.3. Peer-to-peer loans (P2P loans)
The advantages of P2P loans:
- Not using a traditional bank or credit union.
- These loans are made by individuals and investors
- P2P loan rates can be very low, and even with bad credit
3. The interest of personal loans for people with bad credit
- Personal loans for people with bad credit can range from $1,500 to $10,000
- APR also ranges from 9.99% to 35.99%
- The loan term may be 24, 36 even up to 60 months
4. The advantages and disadvantages of personal loans for people with bad credit
- Quick loan approval
- Can help people in improving your credit
- Borrowers can get large amounts of money
- High-interest rate
- Stringent terms and conditions
- Easy to land on unscrupulous lenders
- Easy to cripple individuals without financial discipline
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Hillary (Team Content) – Personal loans for people with bad credit